Should you list your home as For Sale by Owner (FSBO) or should you enlist the services of a real estate agent? This is the first of many complex decisions to make if you are planning to sell your home.
You should consider a lot of factors including your knowledge and experience in the real estate industry and also weight all the pros and cons to determine the right approach in your situation.
While there is definitely a learning curve when you are listing your home as FSBO, it’s not difficult to get acquainted with the process if you know how to find relevant information online and take the right steps at the right time.
The biggest advantage of listing a home as FSBO is that you will save thousands of dollars by not paying commission to an agent that is usually up to six percent of the sales price. If you have decided to take the DIY route, then you can utilize this money in many different ways. Here is how:
Fix your home before putting it on the market
Most FSBO sellers choose to sell their home ‘as-is’ and not without good reasons. Since the buyers have to waive the home inspection contingency under this type of home agreement, the sellers feel more comfortable dealing with all the formalities on their own.
Alternatively, you can make some basic repairs and renovate your home to increase its value. However, make sure that repairs you are marking will add value and you will be able to recoup the cost when selling the home.
Spend money on online marketing
Almost 90 percent buyers start their search for homes online. You can invest your savings in an aggressive online marketing campaign to get your home sold faster and for top dollar. You can hire copywriters and social media marketing experts for a few hundred dollars to prepare a powerful listing and promote it on social media channels and free online property listing websites.
Sweeten the deal
You can make your offer lucrative for home buyers with incentives such as paying for their share of closing costs or a home warranty. You can also price your home competitively. In some situations, these offers can trigger a bidding war and help you sell your home for more than the asking price. Since a home listed below the asking price will create a buzz, you won’t have to spend too much money on marketing.
If you are taking out an FHA-backed mortgage to buy a new home, you probably won’t need to arrange for down payment as you can use the money saved on commission for this purpose. This money can also be used towards closing costs.
Needless to say, you can do a lot of things with your savings. The most important thing to keep in mind when listing your home as FSBO is that you should price it right. Never overprice your home. Look at the details of other recently-sold properties similar to yours and come up with a price tag for your home.
E2F Properties is Westchester County’s premier real estate redevelopment company. We would love to help you sell your home anywhere within Westchester. If you have a home that you need to sell or if you know of a property in your neighborhood that you think needs renovation, please call us to discuss your options! We are a solutions company and are available to help! (914) 999-2293