It is a seller's market and a great opportunity for the homeowner wanting to sell their home. Median home prices are on the rise, while the Days on Market (DOM) are declining. Today's real estate market has created the perfect storm for the home owner to maximize the value of their home sale by selling "For Sale By Owner" or "FSBO."
FSBO (pronounced fizz∙bo) is a method of selling property that does not require a commissioned real estate broker or agent. FSBO creates a marketplace solely controlled by the home buyer and home seller. In 2013, nearly 10 percent of all home sellers and buyers are moving away from the traditional real estate model and going FSBO. Why? Because technology and the Internet are breaking the real estate broker's monopoly and empowering home sellers and buyers. In fact, the National Association of Realtors (NAR) confirmed that 90 percent of home buyers start their home search on the Internet without the assistance of a real estate broker.
So, is FSBO right for you? This is a question every home seller should consider before listing their property with a traditional commissioned broker. If you fit into any of the below categories, you are a perfect match to sell your home FSBO.
- You are Tech Savvy: The Internet has proven to be the great equalizer in many industries. It helps travelers to more efficiently plan business trips or vacations and has reduced transaction costs for investors in the financial industry. So why not real estate? Knowledge is power and the Internet has leveled the playing field enabling home sellers to sell their home over the internet without compromising service. Moreover, sites such as Zillow and others allow consumers to list and market their properties easier than ever before.
- You Want to Be in Control: Until recently, real estate was one of the few financial transactions sellers and buyers were compelled to relinquish the power and control to a third party. Why pay a commission to a real estate broker when you have the support to do it yourself? Would you commission a third party to help sell your car? Nobody knows your home better than you; therefore nobody is more qualified to sell it than you. Being in control does not mean selling the home totally on your own. There are online real estate services available, like iGOfsbo, that blend the human touch with technology to help you prepare, list, market and negotiate the sale of your home. It is now possible to stay in control and orchestrate the sale of your home using a team of professionals. The rewards are tremendous. Along with the boasting rights and satisfaction of selling your home FSBO, you will have more money in your pocket to use as a down payment on your next home, pay for college or buy a little something extra for yourself or your partner.
- You Want to Preserve Your Home Equity: The traditional real estate broker's commission is typically 5 percent of the sales price of a home. Today's real estate market creates a great opportunity for the smart seller. Selling FSBO, with the aid of a fixed fee service, allows the seller to keep a greater percentage of their home sale. For example, using the traditional model a home that sells for $500,000 would cost the seller $25,000 in broker's commission. However, selling FSBO with a fixed fee service costs a fraction of the broker's commission -- allowing the seller to keep more of the equity from their home sale.
Remember FSBO isn't for everybody, so it's important that you assess your needs and priorities as you prepare to sell your home. So is FSBO right for you? Don't tell us, we will wait to see your listing!