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FSBO: Reasons Not to Do This

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By : Vicki Hat    99 or more times read
There are many ways to sell your home. Commonly, people hire real estate agents to do the sale. In exchange for a 6% commission, sellers are able to get all the help that they need to ensure the smoothness of sale.

The six percent that they have to pay can be a lot of money already. For some people this is too much. That is why instead of hiring a real estate agent, they would opt for selling their homes on their own.

But with the current real estate condition, would it really be smart to forgo the help of the real estate agent just to make the most of the sale?

Some people may go for FSBO or For Sale by Owner and become successful to it. That is why they would suggest to other sellers to just drop the realtors and do the sale on their own. However, this is a case to case basis. What if you are a busy person and you do not have time to learn all the basics of selling a house? What if you don't know what the next step is in selling? Who do you run to? And if you find help, are you getting it from the right person?

Selling your house on your own can be advantageous because you can save the 6% commission that is supposed to be paid to the realtor. But people shouldn't engage in this kind of sale, especially with the kind of real estate market that exists. Selling is difficult and you need all the help that you need to complete the sale without problems and eliminate legal risks.

Here are some of the points why FSBO isnít a good idea:

- Prices can be exaggerated. Some sellers can be very subjective in setting the price. They set the price according to how they value their homes.

- May fail to make proper disclosures. Since, they are not familiar with the legal aspects of the selling process, things as simple as disclosures of defects of the house may be foregone. Things like possibility of existence of lead paint due the oldness of the house, radon problems and other serious home defects may be forgone. If the buyer bought a house with standard inspection alone, deeper problems like lead and radon gas problems may not be uncovered.

- Difficulty in selling in slow market conditions. At times like this, it is hard to sell homes. Without the help of real estate agents, the seller may lose valuable updates to sell the houses in a difficult market. And these tips and tricks in selling cannot be simply found in books or how to articles.

- Finding potential buyers can be a problem. Yes, the use of Internet made the FSBO a popular method. However, nothing beats advertising through MLS to sell homes. The problem of FSBO, they do not have access to this.

- Problems in paper works. Any seller would want to ensure smoothness of transaction for faster closing. If the seller is inexperienced and has little information on how to sell homes, problems in paper works may take place causing delays in closing.
More real estate tips can be discovered when you visit Arizona City New Homes, Green Homes for Sale in Arizona City and Arizona City Rental Homes.

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