In the world of real estate, many people list their homes as ‘for sale by owner’ (FSBO). During the FSBO process, the homeowner handles duties that would have been performed by a real-estate agent and/or a lawyer. Unfortunately, there can be a myriad of FSBO problems. Therefore, we believe you should understand the dangers of selling your own home before listing an FSBO property.
For Sale By Owner Risks: An Essential Guide
For sale by owner risks exist for buyers and sellers engaging in FSBO transactions. If you’re considering getting involved with an FSBO property, you need to be fully aware of the for sale by owner pitfalls.
In this post, we’ll discuss some of the reasons people choose to sell by owner, outline some of the risks and pitfalls involved, and provide information on how we can help you sell your property.
Reasons People Opt to Sell by Owner
There are several reasons people choose to sell their homes themselves. These include:
Full Control Over the Sales Process
When you opt for FSBO, you have full control over the entire sales process. You won’t have to listen to any outside opinions on the market, price, or property sale negotiations. Although this may sound attractive, people who choose FSBO won’t have access to valuable counseling and property professionals’ advice.
Potential to Make More Money
When you choose to sell your home yourself, you don’t have to pay for the assistance of a real estate agent. As real estate agents often charge a percentage based on the sale price, you can potentially save thousands of dollars by selling the home yourself. Depending on the value of your home, you could save tens of thousands.
Maximum Focus and Attention
Whereas a real estate agent may be selling several properties at any given time, your property gets your full attention when you sell your own home. Because you’re not juggling multiple showings, you could have hours and hours to spend marketing the property, showing people around, and talking to potential buyers. That said, this is only advantageous if you can afford to spend hours on end trying to sell your home. While you may not have to deal with multiple properties, you’ll undoubtedly have other life responsibilities, such as your job or children.
For Sale by Owner Risks
Many risks can present themselves if you opt for FSBO. Including:
Potential Legal Problems
Selling a property is full of legal pitfalls, many of which are only fully understood by real estate agents and attorneys. Therefore, when you decide to go the FSBO route, you could break the law without realizing it.
Disclosure requirements are a frequent legal pitfall in FSBO deals as they vary from state-to-state. Depending on where your house is located, you could be prosecuted if you fail to disclose information relating to environmental hazards, sex offenders, and deaths on the property. So, if you’re selling your home without an agent, make sure to research the local laws and requirements.
The Sale Could Fall Through
Even if you accept an offer on your FSBO listing, the sale could fall through. This is one of the leading for sale by owner risks. Buyers can back out of a deal for all kinds of reasons. For example, your buyer could be dishonest about their credit and unable to find a loan.
Real estate agents work hard to confirm that buyers are pre-approved for their loans. This helps to develop airtight contracts that make the buying and selling process a breeze.
You Could Lose Money
One of the pitfalls of selling your own home is the potential to lose thousands of dollars. Pricing a home can be challenging, and it’s one of the most frequent for sale by owner problems.
Most sellers price their properties based on what they feel is fair or the price they hope to sell in an idyllic scenario. They are deeply personally invested in the situation, and this can stop them from acting objectively.
However, buyers want a bargain, and they can tell when a property is overpriced. Therefore, many FSBO properties sit on the market for a long time, sometimes depreciating as they wait to be sold.
How The Buy Guys Can Help
Now that you understand some of the for sale by owner risks, you’re probably considering alternative ways to sell your property. Our team of experts can help you to make a decision.
We will buy your house for cash in five easy steps.
- Fill out our online form or call us at (855) 947-5145.
- One of our team will ask you a few questions to understand more about your property’s value.
- Using advanced buying tools, we will assess your house and make you a cash offer over the phone.
- After agreeing on the best offer, we’ll email you a contract. You have five days to review and accept.
- Once the contract has been signed and returned, you’ll set a closing date for signing the Title Paperwork. After this, you’ll receive your funds via money wire, bank check, or certified funds.