Selling a home can be an emotional experience. Deciding whether to use an agent or choosing to list your house as “For Sale By Owner” is a big decision. Many homeowners choose the FSBO option because of the potential savings. Selling your home independently can be a wise financial decision, however, it is important to be aware of potential mistakes that could end up costing you more.
The average commission earnings for a real estate agent is 5%. A listing that sells for $300,000 translates into an automatic $15,000 that is transferred into the pocket of your agent. That is a hefty amount!
The alternative to selling your home through an agent (FSBO) is appealing because of the sizeable commission payout you can avoid. However, many homeowners deciding to take that step in an effort to reduce closing costs can potentially make some expensive mistakes.
In most cases, homeowners lack the necessary expertise in knowing how to accurately price their home, as well as the skill of negotiation and marketing know-how. And, let’s not forget to consider a proper understanding of how to complete the substantial paperwork that is required.
The significant savings in a For Sale By Owner transaction is most definitely worth considering. But, to realize that savings, you must also act responsibly to ensure the process is followed appropriately and doesn’t end up costing you more.
The best way to protect yourself in a For Sale By Owner situation is to hire a Real Estate Attorney. Their expertise can provide the following:
- They can help assist in closing the deal by ensuring the transaction follows all specifications of the contract.
- They can make certain the sale adheres to state and local tax laws.
- They can protect your interests and assist in the negotiation of terms.
The attorney will represent the entire real estate transaction, making sure all obligations of every party are fulfilled.