Home Sale By Owner: Everything You Need to Know

Did you know that home sales in 2020 were 22% stronger than in December 2019? If you are thinking of selling your home and are considering doing a home sale by owner, you are in the right place. We have put together this short guide with everything there is to know about doing a for sale by owner. 

Keep reading to learn the ins and outs of going the FSBO route. 

1. Fees

A lot of homeowners choose to sell their own homes in order to save the fees that are collected for real estate commissions by real estate companies. The truth is that even when you sell your own home you will spend money on things such as advertising, legal expenses, buyer’s agent, and seller-related closing costs. 

Keep in mind that there are more than 20 states in the U.S. that require a seller to hire an attorney to cover the real estate closings. This can cost anywhere between $500 to $1,500. 

2. Research, Research, Research

Because you are planning on selling your home without a real estate agent, it is important that you research other homes on the market. You can even go to local open houses in the area to see how the home is being marketed and presented to potential buyers. 

Are they providing buyers with floor plans or using flashy brochures? Your marketing materials should be a step up from what others are doing in the area. During the research phase, you can figure out the best pricepoint for your home as well. 

We also recommend investing money in a home appraisal. This investment of $200 to $600 will leave you with a much better idea of what your home is worth. The professional appraisal report will also come in handy when you are sharing information about your home with a potential buyer. 

The most common for sale by owner mistake is overpricing the home. This leads to more days on the market which leads to potential buyers asking what is wrong with the house. The longer your house is on the market the more it will drive down the price of your home. 

3. Local MLS

Getting on the Multiple Listing Service or MLS is something that can help you sell your home faster. This lets other agents know that your home is on the market, which means that your home will have more exposure for potential buyers. 

Although you can also use free sites like Zillow, using the local MLS in your area will syndicate your home’s listing to hundreds of home search websites. 

Feeling Like a Home Sale By Owner Pro?

We hope that now that you know more about doing a home sale by owner, you can make an informed decision of whether or not you want to move forward selling your home this way.

Did you find this article helpful? Please keep browsing the rest of this section for our latest real estate tips and tricks.