Alternatives to For Sale By Owner for Maximum Ease and Profit

A home sale is a big transaction with many considerations, so most people hire a real estate agent to sell their home. But you pay a price for the service, typically 6% of the home’s sale price. One alternative is to sell the home yourself, which is called selling “For Sale By Owner,” or FSBO (pronounced “fizbo”). Doing this saves you from paying a chunk of your profits to a real estate agent. If you’re considering selling your home yourself, we take you through the steps involved. We also explain that selling yourself or through a Realtor is not your only option.

What Is For Sale By Owner (FSBO)?

FSBO is a real estate term that refers to the practice of homeowners selling their homes without hiring a real estate agent. The reason for the special term is that selling this way isn’t the norm. More than 90% of home sales transactions are conducted using a real estate agent, according to the National Association of Realtors.

What Is Involved with FSBO?

A big reason most people use a realtor and don’t sell FSBO is that a home sale can be overwhelming. It involves many areas of expertise, including marketing, pricing strategies, and drawing up legal contracts. FSBO sellers need to handle the following:

• Price the home.
• Make necessary repairs.
• Stage the home.
• Market the home.
• Show the home.
• Negotiate terms when an offer is made.
• Prepare the sales contract.
• Provide required legal documents.
• Arrange to close at a title company or real estate attorney’s office.

What Fees and Expenses are Involved?

Although you save money by not paying a commission to a real estate agent to sell your home, you still have fees and expenses when you sell a home FSBO. Here are some of them:

• The buyer's agent commission: If the buyer of your home uses a real estate agent, you are typically responsible for paying that agent through the proceeds of the sale, usually around 3% of the home's sales price. This is negotiated as part of the purchase offer. If you refuse to pay the buyer’s agent, either the buyer needs to pay, or the agent won’t show your home.
• Closing costs: You pay closing costs when you sell a home either using an agent or selling FSBO. Closing costs can be 8-10% of the sales price. They represent things like title insurance, attorney fees, origination fees, and transfer tax.
• Home appraisal: This is often necessary to determine how to price your home.
• Photography: Most buyers view homes online before they schedule a showing, so it's important to have professional photos taken of the house.
• Marketing: You'll need to pay to place your home on most online listing sites.
• Sales contract using a real estate attorney: It's wise to hire a real estate attorney to ensure the legality of the transaction.

What Are Your Other Options?

Navigating the home-selling process can be challenging, with various paths available. Let's explore these options to help you make an informed decision.

Real Estate Agent

Hiring a real estate agent is a common choice for those who prefer professional guidance. Agents handle everything from listing to closing, providing expertise that can ease the selling process. However, this convenience comes with a cost—typically around 6% of your home’s sale price, which can reduce your net profit.

Discount Agent

Discount agents offer a middle ground, providing limited services at a lower commission. They can help with marketing and listing, allowing you to save on fees. Yet, you might still shoulder many responsibilities, and additional costs for a buyer's agent may apply, potentially reducing overall savings.

iBuyer

iBuyers are known for their speed, offering quick cash transactions. This can be advantageous if you're seeking a rapid sale. However, their offers often reflect a lower market value, and they operate under specific buying criteria, which may not fit all sellers' needs.

Sell the Home Yourself (FSBO)

Selling FSBO puts you in control, eliminating agent commissions and potentially saving money. It can be rewarding if you have the time and expertise. Nonetheless, it requires managing marketing, negotiations, and legalities, which can be daunting and time-consuming.

Wedgewood Homes

Wedgewood Homes stands out for its simplicity and ease. We purchase homes in any condition, eliminating the need for repairs or fees. Our process is straightforward: complete a quick online form and receive a competitive cash offer on your terms. Our team handles the details, ensuring a hassle-free experience.

Each option has its merits and drawbacks. Whether you seek professional assistance, cost savings, or a quick sale, weigh the pros and cons to find the best fit for your situation. For those looking for a seamless experience, Wedgewood Homes offers a compelling choice. Visit wedgewoodhomes.com to explore how we can assist you in selling your home effortlessly.

Instead of dealing with FSBO, consider selling to Wedgewood Homes. No transaction fees, no repairs, and a full cash offer.