Have you been thinking about taking advantage of the seller's market? Before you head to the local hardware store for the "For Sale By Owner" sign, here are a few things to take into consideration.
I know you're doing the math and figuring out how much selling your home on your own could potentially save you. I get it. My family is pretty financially conscious (a.k.a. cheap). We all want to save money. HGTV and Selling Sunset have us believing that selling a house is as easy as pie. But, let me take a few minutes to shed some light on a few important things to consider before you decide to go FSBO route.
Value - do you truly know how much your home is worth? If you're looking to the internet to determine what price to list your home at, you could be losing a lot of money. Online home values aren't always entirely accurate, which means basing your list price on that could leave a lot of money on the table. The online algorithms can't tell you how much value your fireplace, new luxury vinyl plank floors, and updates add to the value of your house. It cannot provide you with a personalized, apples-to-apples comparison, nor can it make personalized recommendations regarding updates, repairs or other tips for preparing your home for sale.
Contracts and negotiations can feel like a foreign language if you're not a real estate professional. Not understanding how to navigate these or not having someone working in your best interest could result in sticky situations and money lost. Knowing the difference between the loan types, appraisals required, and contingencies could save you money and headaches down the road.
Demand - when you're in a hot market, one of the greatest benefits to you as the seller is that you're typically in the driver's seat. When there are more buyers than listings for sale, your house can spark a bidding war when it hits the market. However, without an agent helping you prep your home for the market, pricing it strategically, marketing it with modern methods to really get it out there, you're missing out on that demand.
Managing the sale and purchase. If you're ready to move up or downsize, managing the sale of your current house and buying a new one at the same time presents a whole different world of challenges. Can it be done? Absolutely. It just requires a little more patience and know how when negotiating the deal, prepping your current house, and managing all of the moving pieces together for it to all fall into place.
My best advice before you make the decision to do it alone: do some research. Find an agent who has good reviews, comes highly recommended and who you can learn something about before reaching out. What does their experience look like? What are their clients saying? Then, schedule a consultation with them to see how they can help you net the most money possible from your home sale.