The ensuing article throws light on the various aspects of buying houses put up for sale by their owners apart from dealing with all the challenges faced by owners who intend to sell their properties without enlisting a broker’s help.
Homes being put up for sale by their owners are those properties that are on offer without the involvement of an estate agent in between. The main reason behind home owners deciding against selling with the help of an agent is the fact that they cannot trust the agent enough and do not believe that he or she will have their best interests in mind. Another reason is many home owners try to save the large sum of money they would otherwise have to pay the agent, by doing the job themselves.
Homes that are put up for sale by their owners do not generally feature on the Multiple Listing Services (MLS) which are commonly used by estate agents. Even if they do so in some rare cases, buyers‘ agents are generally unwilling to deal with the actual owners of a property. Hence people who are interested in properties for sale by owners should think twice before employing a buyer’s agent.
The following points on the positives and negatives of selling their home without the help of an agent can assist people to decide on the appropriateness of marketing their home as FSBO.
Commission: The major advantage of not enlisting an estate agent’s help while selling a property is the fact that the owner can save a lot of money that otherwise had to be paid as commission to the broker. It is to be remembered that the commission is generally 5% to 6% of the final selling price of the house. However, enlisting a broker might also be beneficial because since the commission is relative to the price of the house, broker’s for their own benefit make an effort to sell the property at as high a price as possible.
Advertising and Information: Earlier, it used to be extremely difficult for owners to sell their homes without a broker because the number of websites catering to the FSBO market was meager in comparison to present times. Nowadays, anyone can register for a MLS website by paying a fee. The MLS facility provides a good platform for marketing a property.
Property Appraisal and other Technicalities: the seller must ensure that his or her house is not overpriced in order to attract a large number of buyers and ensure a quick sale. For this reason getting the cost of the house calculated by a professional is extremely necessary. The process is known as property appraisal and is crucial for selling a house. Apart from this the legal formalities also need to be dealt with and in this respect it is prudent to ensure the help of a experienced lawyer. Finally it has to be ensured that the prospective buyer is a legally safe bet. Buyers with pre-approved home loans do not generally pose trouble since banks do every security check necessary before lending money.