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Just What is an FSBO?

By Tiffany Raiford

While you might not recognize the term "FSBO" you surely recognize the term, "For Sale by Owner." It's a common term used by many homeowners who want to sell their home without the help of a real estate agent in New York and the rest of the world. When you choose to sell your home on your own, you will save money on an agent's commission, but that's not a valid enough reason to opt for this type of home sale. You should educate yourself on the aspect of selling your home on your own before you make this decision.

Advantage of FSBO

The biggest advantage of selling your home without the help of a real estate agent is the fact that you will save at least half the commission. The reason you may only save half depends on your buyer. If your buyer utilizes the service of a buyer's agent, you are responsible for the commission received by the buyer's agent. However, saving half of the commission price still equates to a much larger profit to you.

Total control is yours when selling FSBO. You get to make the decisions without having a real estate agent telling you how to stage your home (though knowing how to stage your home is helpful!). Additionally, when you opt for a FSBO sale, you get to choose the times and dates to show your home rather than receiving surprise phone calls from your agent asking you to get out of the house in the next few minutes so she can bring buyers through.

Disadvantages of FSBO

The disadvantages of FSBO are numerous in comparison to the advantages, but that doesn't necessarily mean anything negative, depending on your point of view. One of the biggest disadvantages of FSBO sales is that you need people to see your home. Your method of advertisement is endless, but working with an agent will still likely draw more potential buyers to your home, at least initially. Secondly, many buyers are concerned about FSBO because they feel unprotected should any sort of problem arise.

Furthermore, if any sort of problem with your transaction should arise, you are not as protected as you should be without an agent. An agent is well-versed in the number of issues that could arise, whereas you might not be so familiar with the same problems. This could lead to delays and complications, as well as a loss on your part.

In the grand scheme of things, the FSBO market is a popular one. Despite the fact that some buyers are not comfortable with FSBO home sales, many are perfectly fine with it. Millions of sellers choose to go this route and many of those homes sell quickly and without any problem. Of course, even with a real estate agent, problems arise that could delay the process of your home sale; this is not limited to only sellers who want to sell on their own. The choice is, most certainly, your own.

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