Selling your house or condominium by yourself (For Sale By Owner-FSBO) can save you thousands of dollars, usually about 6% of the sale price in commissions, but it requires work. Although an experienced real estate agent can be a good marketer of your property and help you find a buyer, you may be able to market and sell your home without an agent if you have considered the following questions.
- Do you know the current market value of your property? Your goal is to obtain the best sale price that you can get for your home. However, you need to understand the market value of your home so you can effectively price it for sale and negotiate a sale price. If you are aware of the recent sale prices of other comparable homes in your neighborhood or condominium complex, then you may be on solid ground. However, the best method for obtaining an opinion of the current market value for your home is to use a licensed and experienced appraiser who specializes in residential properties.
- Do you live in a subdivision or condominium complex? If you do, posting a notice on your homeowner or condominium association’s website or in its newsletter can be an effective way of marketing your property for sale. Residents may know of someone who is interested purchasing a home where they live, particularly if the location is desirable and there is a relatively low turnover rate of owners.
- Do you have the time to draft an appealing brochure for interested buyers? In addition, if you decide to use a real estate web site to market your property, do you have time to research the web site’s effectiveness for marketing “FSBO” homes?
- Do you live in a neighborhood where there is a high demand for homes but little supply or turnover? Putting a For Sale Sign in your front yard may be all you need. Also consider using your neighborhood newsletter or website to market your home.
- Have you decided whether you will negotiate with a real estate agent who tells you that they have a buyer who is interested in purchasing your home? A real estate agent representing a buyer will normally ask for a commission when submitting a purchase offer. A commission for a “buyer’s agent” can be negotiated but is usually about half of the standard commission paid to a listing agent.
- Do you understand that although you will be saving a substantial amount of money selling your home yourself, there are other costs involved with the transaction? Costs include the State of Michigan’s Real Estate Transfer Tax and a title insurance policy, both of which are based on the sale price of your home. In addition, there are legal costs to consider so that the sales contract, title insurance and closing documents are drafted and reviewed properly. Keep in mind that the payment to hire an experienced real estate attorney to help you will be far less expensive than doing it yourself and making costly errors.
If you are well prepared and have an experienced real estate attorney to help, you should be able to sell your home yourself. Consult with Bill Ager at Ager Law Office. For a reasonable flat fee, Bill will make sure that you do it right. Call us at (734) 649-0784 for a consultation.