When you sell your home, carving off a piece of that big check and handing it over to a real estate agent is an unpleasant moment. It’s hard to resist wondering whether you could have sold your home yourself and kept the agent’s commission. Grand Junction there is an alternative that lets you DIY – For Sale By Owner or FSBO, pronounced “Fizzbo.”) According to the National Association of Realtors, about 1 in 12 home sales are FSBO.
By cutting out the middleman, you avoid paying thousands of dollars to a selling agent. But selling your house yourself can cost you a lot of time and introduce new headaches and risks. And you might not save you as much money as you think. Here’s how to tell whether the FSBO path is right for you:
How much money are we talking about?
The U.S. average commission in 2013 was 5.38%, according to the Los Angeles Times. So a seller with a $200,000 home would pay about $10,760 to real estate agents, typically split 50/50 between a buyer’s and seller’s agent. “I support sellers who want to give it a go, because there’s real money on the table,” says New York-based real estate attorney Michael Moshan.
Still, saving 5%-6% seems like a good idea; unfortunately it’s not that simple. Here are a few reasons why:
How much work will it take?
Here’s where you’ll need to consider what your time is worth. Because FSBO will require time, legwork and brainwork.
So FSBO is never a good choice?
No. Complex though it is, FSBO can pay off. Here are some final tips to help you decide:
Is selling your own house right for you?
If you’re energetic and have the time, if you’re on top of paperwork and don’t mind research, and if you’re a good salesperson and negotiator, you may be able to make it work. But if the thought of managing all these details makes your head spin, there are professionals to handle them – for a price, of course.
Regardless of how long you plan to stay in your home, safeguarding it against calamity is wise. Check out Sterling Peaks Insurance homeowners insurance options to find a policy that can keep your residence safe and secure.
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