FSBO: Strange to Say, Important to Understand
FSBO is a relatively simple acronym, often pronounced "fizzbo." "For sale by owner" is what it stands for. A home is sold FSBO if anyone who goes through the process without representation by a real estate agent or broker.
You can use several different ways to sell your home real estate agent or broker representation-free. You can opt to make use of a company specializing in marketing or online listing, as an example. You can opt to use a lawyer's services and advice to aid you in the home-selling process, as well.
The process of selling your home FSBO can be appealing to many homeowners. Perhaps the most popular reason many choose to go this route is to save money on what is known as a commission. When you sell your home through a real estate agent or broker, their main means of earning money themselves is by charging the homeowner a percentage of the price their home actually sold for. Some real estate agents and brokers can charge as much as six percent of the total sale of the house.
FSBO transactions are not without their complications, though. Most homeowners do not possess much background knowledge in either real estate or applicable law. This is where they can run into problems. Disclosures are a prime example. That leaky faucet and the water damage in the ceiling of one of the rooms? Those issues need to be disclosed to a potential buyer. If a buyer purchases your home without knowledge of anything you personally were trying to conceal, you are opening yourself up to serious liability issues. Real estate agents understand the ropes in this arena, and that's exactly why you're paying them a commission: for peace of mind that nothing will jeopardize the sale of your house.
The FSBO process can be a rewarding one, if done correctly. As a home seller, you could save quite a bit of money not having to pay a real estate broker's or agent's commission. If you're up for the challenge, this could be a good option for you. If you're less certain of your real estate and legal savvy skills, however, the commission may be a small price to pay for your own peace of mind.
You can use several different ways to sell your home real estate agent or broker representation-free. You can opt to make use of a company specializing in marketing or online listing, as an example. You can opt to use a lawyer's services and advice to aid you in the home-selling process, as well.
The process of selling your home FSBO can be appealing to many homeowners. Perhaps the most popular reason many choose to go this route is to save money on what is known as a commission. When you sell your home through a real estate agent or broker, their main means of earning money themselves is by charging the homeowner a percentage of the price their home actually sold for. Some real estate agents and brokers can charge as much as six percent of the total sale of the house.
FSBO transactions are not without their complications, though. Most homeowners do not possess much background knowledge in either real estate or applicable law. This is where they can run into problems. Disclosures are a prime example. That leaky faucet and the water damage in the ceiling of one of the rooms? Those issues need to be disclosed to a potential buyer. If a buyer purchases your home without knowledge of anything you personally were trying to conceal, you are opening yourself up to serious liability issues. Real estate agents understand the ropes in this arena, and that's exactly why you're paying them a commission: for peace of mind that nothing will jeopardize the sale of your house.
The FSBO process can be a rewarding one, if done correctly. As a home seller, you could save quite a bit of money not having to pay a real estate broker's or agent's commission. If you're up for the challenge, this could be a good option for you. If you're less certain of your real estate and legal savvy skills, however, the commission may be a small price to pay for your own peace of mind.
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FSBO: Strange to Say, Important to Understand
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