Updated: Jul 14, 2021
While dealing with property, people try to minimize their expenses as much as they could. The first approach of the seller is to put the house on sale by the owner. It can be appealing to save 3% of listing commission fees but not as easy as it sounds. This is a stressful and pressuring procedure. If you want to sell your house to the owner, you need to handle the pressure. According to the research, 20% of sellers tried to sell their homes without taking agents' help, out of which only 10% completed the sale. Other 10% again moved to the agents to complete the sale.
What is For Sale by Owner?
For sale by owner is a selling strategy without involving any real estate broker or agent. The most prominent reason for choosing this selling strategy is to avoid the listing fees or agent's commission. This process varies from others. Let's have a look at the pros and cons of selling a house without involving an agent.
· Saves time - Visiting a real estate agent requires a lot of time and headaches. Dealing with the selling process on your own saves time
· No Commission expense - Usually, the agent's commission drags more money from the seller's pocket. According to research firm Real Trends, in 2019, the average real estate commission was 4.96%. In 2021, it is between 5.06% and 5.85%. However, you can walk away with the total profit amount by using FSBO
· Listing Control - While you manage the listing on your own, you get complete control of the listings. You manage the price, listing details, and other listing-related matters
· Manageable schedule - When a seller deals with the property selling without involving any agent or listing owner; then, he solely manages listings, private tours, and open houses. You do not need to deal with last-minute appointment calls and sudden tours because you schedule everything according to your availability
· Low Sale Price - The industrial analysis has shown that sellers who involve agents, get more sale prices. They garner comparatively more profit even after paying the commission fees. It can be because of various reasons, including vast experience of agent, his local expertise, strategies he uses, agent's connections and reputation, and negotiation experience
· More Investment and Time - When you do not involve any agent, marketing your property in front of potential buyers is solely your responsibility. That means you need to manage everything on your own. It takes a lot of time, especially when you're doing it for the first time. Moreover, it requires a lot of money to market your property on different social platforms, advertising flyers, and brochures. Other than the investment, it is very time-consuming. You will have to manage all the calls, entertain the customers, run behind the marketers, schedule tours, coordinate with the visitors, maintain the house, and perform many tasks at a time
· You can make mistakes - You are susceptible to make mistakes when dealing with various tasks, at a time, without any prior experience. These mistakes can be costly and create a prolonged impact
· Buyer Agent’s Commission - Even if you do not hire an agent, you may have to pay the buyer's agent because 74% of buyers offload their burden by hiring an agent
How Does For Sale by Owner Work?
As mentioned earlier, it is not an easy process.
· Before putting the house on sale, it is necessary to decide on a selling price. Every seller wants to make more dollars, but overpricing has negative impacts. A complete market analysis is required to set a comparable price
· Make your home ready-to-market by doing a complete analysis of your property and fixing the issues
· Start marketing the property by advertising it on social platforms, brochures, and online listings
· Schedule your meetings accordingly. Make a timetable for open house tours
· Wait for an offer. Once the buyer makes an offer, negotiate properly on price and sale terms
· Once you accept the offer, start the legal documentation, including but not limited to the sales contract, disclosure form, occupancy agreement, permits, property surveys, billing details, loan documents, etc.
· Make the deed ready (including warranty and more) and get it signed by the buyer
· Receive the cash and close the deal
Although saving some thousand dollars from the agent's commission is tempting, you will have to assume all the responsibilities. It is not easy to run your comps. A real estate agent has experience in doing market analysis, marketing, and negotiation. A person with no buying-selling experience makes unrecoverable mistakes. So, it is not a recommended practice.
Fast Cash for Real Estate
If you want to sell your property in Houston, TX, then come to the Fast Cash For Real Estate platform and enjoy commission-free selling. We are dealing with the real estate property and offering the sellers direct money for their property. We do not engage any agent or listing owner. In this way, you get a total amount of your property. Our mission is to lessen the seller's burden and give them a happy selling experience. We try our best to minimize your expense so that you can enjoy the sale. The most exciting part is that we purchase your property in as-is condition. You do not need to spend dollars on maintenance or repairs.
How does Fast cash For Real Estate work?
We understand your need and do not take much time. If you want to sell your property, then contact us. Our representative will have a 15 minutes walk-through and make a no-obligation offer. If you agree, we set a closing date and pay you the total cash in hand.
We aim to create a win/win situation where you get what you deserve without spending a lot of money and time. Trust our service and have a happy selling experience.