FSBO: A Guide to Selling Your Home Without a Realtor

Realtors do alot, hence why they make a 6% commission. Here are some of the responsibilities of a Realtor and how doing these yourself can benefit you.

No Contract
Without a Realtor, you are not confined by a contract. A real estate contract is a legal agreement where you agree to use the services of the Realtor for a set amount of time, and do not allow you to use services provided by the Realtor to sell the home yourself. Not using a Realtor can benefit you because you retain the flexibility of the sale and every aspect of it.

No Commission
Realtors are pricey, with 6% commissions, their services can eat your equity really fast. By doing the leg work yourself, you can retain that equity for your new home or other investments.

Marketing
While this is alot of work for a homeowner to take on, you are able to choose how you want your home marketed and you can do it for so much cheaper. By posting flyers in community areas and taking out your own ads in papers and the internet, you will pay thousands less to market your home to potential buyers.

Staging
You will need to pay for an appraisal, but by tagging along you can get an outsiders view of your home and then make adjustments accordingly. Appraisals usually run a few hundred dollars, but if you had a Realtor do this, they may hire a staging team which will run you an additional few hundred.

Showing your Home
Realtors will usually do this for you, but if you do it yourself you can point out the best features that brought you to your home, and your favorite additions. Plus you can leave out what is not so good and honestly answer buyers questions.

Documents
While you will be responsible for drawing up documents, you also have more flexibility with closing. I would recommend to make an appointment with an Attorney to ensure that the sale is legal.

Price
You will need to determine a fair market price for you home. You can do this through your appraisal, but you will also need to watch buyers to see if your price is attracting them. The benefit of doing this yourself is not that great because Realtors have the expertise in this matter.

Title Company
You will be able to choose which title company you want to conclude the sale. You can shop around for the company that you like the best rather than use the one your Realtor chooses.

Money
The best benefit of FSBO is the amount of money that you will save. You can make yourself thousands of dollars by taking on the tasks of a Realtor.

Experience
For many people, learning how to do something is a great incentive. While I would not recommend this for first time buyers or sellers, it may be a good choice for those who have done it a time or two. If you are into flipping homes, learning the ins and outs of the business can be invaluable once you master the process.

FSBO is a complicated process but can be beneficial to those who are willing to put the effort into it.