Various misconceptions exposed about selling by owner’s transactions
Posted On June 11, 2021
There are several misconceptions about the type of transaction For sale by owner in the real estate world. If you are trying an FSBO, you have come to the right place. Let’s take a look at some of the myths and facts about this popular method of selling your home. Hopefully this will address some of the misconceptions and misinformation you have about the process. It can be a positive transaction for all parties involved, when done correctly.
Myth # 1: I have to know a lot about real estate in order to sell my house on my own. You should have a license as a real estate agent or at least take some classes.
Truth: While it can be helpful to know the real estate laws in your area, you don’t need to know all of them. Many times you can hire an experienced real estate attorney for much less than the agent’s commission and is legally covered. These attorneys can provide you with the necessary contracts to make the sale legal and binding. You can benefit from real estate classes or some simple online training, but you don’t need to have a license to sell your own property. Legally, any owner can sell their property without having a real estate license.
Myth # 2: I need to be good to people to sell my house.
Truth: You should not be afraid of people. There are some people who have a natural dislike for people and consider themselves hermits. Most people, however, can talk to other human beings individually. If you are nervous in crowds, you have the ability to limit visits to one person at a time. You never have to host an open house and you can ask to speak only to the actual buyer, not their entire family. If you work and interact with people on a daily basis, limited or not, you can make the necessary talk that will sell your house.
Myth No. # 3: I will make more profit when I do an FSBO.
Truth: While many sellers report higher profits, many experience the benefit of simply not paying money out of their own pocket. In this current real estate market, competition is plentiful and you may need to lower the sales price to compete in the market. You must be willing to commit to have a successful sale. When the price drops, you may not have the money left over from the sale to pay an agent and concessions. An FSBO will allow you to skip that part and lower the price enough to sell, but you may not make a substantial profit on the house.
Myth # 4: People will call and drop by at all hours of the day and night.
Truth: You’ll receive phone calls, emails, and even car visits. Don’t consider them a hassle, but rather money in your pocket. These are potential buyers and the faster you can get them to buy, the sooner you can end the hassle. It can be a hassle to have the projections and distribute the information, but in reality when you use an agent, they don’t clean for you, make the decisions for you, or even create a budget for you. Those are all the items you will do on your own, so why pay an agent to do it?
Myth # 5: It will hurt my neighbors and the area to have an FSBO instead of a "true" dirty.
Fact: When a home is sold, the price is recorded. Depending on where you live, it can be public information. Regardless of how it is sold, the information is recorded. Even if you sell your own home, your area will not be affected. Would your neighborhood benefit from a new person moving in and buying the home or from the home being left vacant with capacity for squatters and vandalism? You need to sell your home, why not do it while you are in control?
Taking control of your real estate situation means doing what’s best for yourself and your situation. Don’t let others determine or intimidate you into making a decision. Real estate gives you the ability to control the future and you can be in full control of the transaction.