In order to avoid real estate agents, many people opt for For Sale by Owner method. Here’s why this isn’t always such a good idea.
For Sale by Owner (FSBO) is becoming more and more popular method for house selling in Milwaukee. This is likely the case as people are losing faith in real estate agents as the years go by. Not only do they feel like agents can be unreliable, but they also don’t have all the finances that are needed when you want to sell your house this way. For Sale by Owner seems like a good solution to bypass agents. But, is this really the best option for you? Here are a few common obstacles for people who want to try FSBO.
Appropriately Valuing Your Property
Pricing the property the right way is the trickiest part of For Sale by Owner. Owners tend to be too emotionally attached to their house, so they can have a hard time determining the right value of it. In fact, FSBO sellers tend to be very sensitive to the price, much more so than traditional sellers. However, you have to be very careful when valuing the property, as you can have many issues if you do this step wrongly. If you list it at a too high price, no one will want to even look at it. However, if you set the price too low, you’ll make it seem like there is some underlying issue. Balance is the key.
Selling a home isn’t completed after one signed contract. There are many documents you’ll need to get and to sign, such as contingencies, disclosures, addenda, and other. When you opt to For Sale by Owner, one wrongly signed document can ruin everything. If you forget to disclose just one fact, you might be facing a lawsuit, or if you miss one document, you may delay the sale for weeks to months. When working with a real estate agent or a real estate investor, you are more protected from lawsuits than if selling alone. Even if you work with a real estate attorney, chances of signing a document wrongly are very high.
Prolonged Waiting Period
Since you’ll be working alone, chances of selling your house on time are slim. In fact, it’s almost impossible for For Sale by Owner homes to be sold on time due to lack of advertising. If you want to sell your house in less than a few months, you have to invest a lot more money in advertising. When you have a limited amount of time, such as when awaiting foreclosure or job change, or a limited budget, FSBO isn’t the best option.
Preparing Home for Sale
Preparing a house for sale can be a long-lasting process, depending on the condition of your home. If your house is anything less than perfect, you may spend thousands upon thousands on home improvements and upgrades. That’s the money you’ll have to pay before you even list the house, and it can greatly influence your profit. Not to mention that you should pay for a professional inspection that can determine what needs to be repaired. When working alone, you may not notice some things that need to be repaired. It’s always better to hire a professional to inspect everything, as they can look at things objectively. Also, this can help you avoid any bad surprises once the official inspection is conducted before the closing date.
Not Enough Time to Devote to the Sale
This is the main reason why most people decide against For Sale by Owner method. It takes up too much time to organize everything. You have to personally devote time into every part of the sale, including market research, constructing an entire sale plan, contacting the listing representatives, finding out good advertisement place, thinking about a marketing strategy, collecting documents, negotiating with potential buyers… All of this takes an enormous amount of time. Not everyone can dedicate themselves to such a process, and this is okay. If you’re working with an agent, you can enjoy the free time, but for a fee.
What If FSBO Isn’t for You?
For Sale by Owner isn’t for everyone, and that’s okay. People who want to sell a house fast or who don’t have money to invest in sale might not have the time and finances to sell by themselves, or even with an agent. For these people, working with a direct buyer, such as Sparks Property Investors LLC, might be the best solution possible. Direct buyers will be able to close the sale in as fast as seven days, so you don’t have to worry about holding costs. Also, they’ll pay you in cash, and as they buy houses as-is, you don’t have to invest a cent into the selling process. They can even handle most paperwork, to take this off your hands! For people facing foreclosure, divorce, or new place of employment, this might be the best option in Milwaukee.