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For Sale By Owner – How Does This Change The Home Buying Process?

The DIY guide for selling and buying a for sale by owner property.

When it comes to selling your home, more and more people are opting for the do it yourself method.

The private sale of homes is becoming fairly common thanks to advances in Internet technology and an increase in For Sale By Owner (FSBO) companies.

If you succeed in making the sale, you could save yourself a real estate commissions of 3-5 percent.

How For Sale By Owner Works

Typically, private sellers will use one of the many For Sale By Owner network websites. These companies will offer different service packages to help you sell your home. Basic packages include exposure through their website, lawn signs, and a personalized consultation with sales representation. The premium packages offer additional advertising support (i.e. in local newspapers, or real estate magazines), and they perform a competitive market analysis.

According to research studies, 45% of Canadians would consider bypassing realtors to sell privately with the advice of a real estate lawyer. A good lawyer can make all the difference for a private seller.

This system also weighs heavily on the interaction between the seller and their lawyer. A lawyer is best equipped to handle situations of legal concerns.

Thinking of Selling Your Home Privately?

When it comes to deciding whether or not to try and sell your home without the services of a real estate expert, consider the following:

The Pros
    •    You could save thousands of dollars in commission fees
    •    You’ll be able to maintain control over all aspects of the sale
    •    You’ll have the freedom to show the house at your own convenience
    •    You have the opportunity to highlight, from your experience, everything your home has to offer to potential best mortgage rate buyers
    •    More buyers are web savvy and aware of private sales websites, as well as online auctions and free classified sites
    •    If you pass some of the savings onto the buyer you open up your reach to buyers at lower price points

The Cons
    •    Potential buyers may not find your home
    •    Real estate agents know the market and what price points will sell
    •    Upfront advertising costs, with no guarantee of visibility
    •    Potential low mortgage rate buyers must contact you
    •    Nobody to draw up contracts or advise you on negotiating
    •    You may need to negotiate a commission for the real estate agent of a potential buyer

The Safety of an Agent

For many, a real estate agent is the most comfortable option when making such a significant transaction. They can guide you through the process and negotiate the sale on your behalf.

Ultimately, only you can make the decision if the service of an agent is worth the fee.