Have you ever walked into a neighborhood and seen a “For Sale by Owner” sign in front of one or two homes? This is not abnormal since some homeowners don’t understand the dynamics of selling a home. It may be that the homeowner thinks that real estate sales commissions will dent the final sales amount quite considerably. It could be that the homeowner owes the bank an amount that is close to the sale price and wants to get the most out of the sale.
FSBO or “For Sale by Owner” as it is known has been used by homeowners with a need to be in control of their real estate investment
. Before you consider selling your home on your own, it is important to consider several important factors why you probably should reconsider.
When you are your own seller’s agent, you are going to have to deal with the agent of the buyer. If a buyer’s agent knows that there is no other real estate agent involved, then this could create a headache for you as a seller. In other words, this is not a professional way to sell a home. Even if a buyer really wants to see the home, the buyer’s agent might want to discourage the idea of making a sales offer, mentioning risks and hassles involved in closing the deal without a real estate broker representing the home’s seller. There are just a few reasons why a buyer’s agent will show their buyer an FSBO property. One reason is if the price is really very low and the other reason is if there are few inventory on the MLS listing, which is usually not so.
Moreover, most realtors will often stay clear of FSBO transactions because once the sale has been finalized; there is a risk that the seller won’t disburse the full commission. Some might not even want to pay at all. Many experienced real estate brokers also think that FSBO sellers tend to be difficult, unreasonable, and impractical. Under the appropriate conditions, there are some buyer’s agents who will be interested in showing a FSBO property, but that is far and in between. However, in an ideal situation, it is recommended that both parties sign an agreement stating the percentage of the fee that will be paid by the seller to the agent. The agreement should also indicate that the buyer’s agent is only fiduciary responsible for the buyer.
When someone is selling their home, there tends to be a lot of emotion involved. An agent would be able to keep this at bay by representing the seller, keeping the seller a step removed from the intricacies of the sale. When the seller is not closely involved, the price of the home will not be overstated since the agent has a good idea of the real estate market more than the seller does, in most cases.
The Realtor’s Role
A realtor will be able to follow up with leads and arrange open houses with the seller not being at home. A realtor will remove the sting from any rejections or put positivity on negative feedback from a potential buyer without hurting the seller’s feelings. Using a third party to sell your home would be more effective and opens up a larger network of leads essential to showing and selling the home.
Is your Aurora home on the real estate market for sale? There are many homes for sale in Aurora. For that reason, you are going to have a lot of competition. So, you need an experienced real estate agent. Farrell’s Sales Real Estate
is in the business of selling homes fast. Contact us today to discuss your needs.