For Sale by Owner Trend
Posted on August 20th, 2007 in FSBO Tips |
As I drive down the street I see numerous homeowners attempting to sell their homes by owner. Several companies are now offering flat fee listings and marketing packages to assist FSBO. Sellers are attracted to the low fees and compare them to the fees of a Realtor. There are advantages to the “for sale by owner” companies but only if you have the expertise and time to perform literally hundreds of tasks to complete the real estate process. I believe the benefits of listing with a Realtor far outweigh the benefits of using a FSBO company.
FSBO Listing
Let us compare the upfront cost associated with both options. To sign a listing contract with a Realtor it will cost you nothing. The only way a Realtor earns a commission is if and when the home sells. When signing a contract with a FSBO company the seller must pay the company a predetermined fee which is not refunded regardless of whether your home is sold. Remember that this predetermined fee typically doesn’t last until the home is sold so you may need to pay fees several times depending on how long it takes your home to sell…
Now keep in mind that once you have negotiated and settled on a commission with a Realtor that price is set and there aren’t any extra features that you need to purchase. “For sale by owner” companies typically require you pay extra for features including signs, photos, ads in magazines, internet advertising, and more. In addition, a Realtor’s commission includes payment to a buyers agent with no extra cost to you. Most “For sale by owner” companies require you pay buyers agents commission on top of their fees.
FSBO Trend
While at first glance a FSBO may seem like the answer, this simply isn’t true. If you are selling your home, I say give a Realtor a chance. Let them do the work so you can sit back and relax. The choice is now up to you: Hire a “For sale by owner” company, pay upfront, and take the risk of losing the upfront money or hire a Realtor with no upfront cost, pay Realtor commission once you have sold your home and lose nothing!
Article Source: EzineArticles.com expert - Heather Yocum
4 Responses
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Now a days 20% of homes are being sold using fsbo companies, i agree that you may loose the upfront money if your home is not sold in the given period of time and you will have to pay more money to be listed on their site. But still that will be very very less than the realtor (those charge directly 6%) so i think its worth trying such fsbo companies.
Thanks…
People do not have to limit themselves to one option when selling. We find many people are using the FSBO route alongside a traditional estate agents. This gives people the maximum exposure for their property and increases the chances of finder the right buyer.
I fell blessed that I found your post while searching for real estate for sale. I agree with you on the subject For Sale by Owner Trend. I was just thinking about this matter last Tuesday.