The DilemmaOne of the most popular objections of my friends and other millennials about purchasing a home is they can't afford it. These days with all the assistance available for home buyers, money
Three Options For Selling Your Northern KY House PART 2
Continuing our blog series "Three Options For Selling Your Northern KY House", you've just learned about the most popular way to sell a house today is "Working With A Real Estate Agent".
Read on to learn a bit more about Option 2...
2) Selling Your House Yourself (FSBO)
In the last ten years "For Sale By Owner" has become very popular. With sites like forsalebyowner.com, craigslist.org, and others like it, it's become easy to list a house online. You can even get a "FSBO" sign for your yard and hit the market taking control of the sale process for yourself.
The general process of selling a house on your own is...
1. You determine the value of your home. Sometimes this can be tricky, but there are resources out there. Usually paying for an appraisal is the most accurate and best way to find the true value of your home (or ask a real estate agent who is willing to give you an opinion of value)
2. Take pictures of the house, gather all of the details about the house (the square footage, etc.), and create a listing on a FSBO website. Also, put a FSBO sign up in your yard
3. Then, you market it. Since marketing is your responsibility, you can do as much or as little as you want. Many people list in the newspaper, online, and there are even "flat fee" MLS services out there where you can get your house on the MLS for under $500 (with no listing agent commission)
4. You handle showings, offers, and putting together the paperwork for the sale
5. You and the buyer show up at the closing table and complete the purchase
This can be a very attractive option if you're familiar with the real estate sales process and are a good marketer.
Cost: The only real costs are whatever fees there are to list on a FSBO site (between $100 and a $1000), if you choose to get it listed on the MLS with a flat fee agent (about $300 to $500), any cost to fix your house up so it shows well, and potential closing costs that you may share with the buyer. Plus, if you decide to pay a buyer's agent fee (3% in our example backin Option 1) to entice agents to bring their buyers to see your house
Timeline: This really depends on your ability to market the property. Usually FSBO houses stay on the market a bit longer than with an agent simply because agents sell homes every day and know the tricks to sell. But, you should budget approximately 4 to 6 months selling in the urban parts of the northern Kentucky market area.
Pros: You can save a big chunk of money by not paying agent fees. And, you have control and full responsibility over the entire process.
Cons: It's a lot of work to sell your own house, and if you're not comfortable and experienced in the process of selling a house, the paperwork, valuing your house, etc, you could end up in over your head and it costing you more than working with an agent. The largest drawback with going the FSBO route is the amount of time it could take to sell.
Who The FSBO Route Is For
Selling your own house is really great for people who don't need to sell quickly and who have no urgency to get out of the house. Also, people who have ascertain comfort level with negotiations, working with offer documents, etc. usually like this route. If you need to sell quick and/or don't want to hassle with everything that goes with listing and selling your house yourself, this isn't the strategy for you.
|CONTINUE TO OPTION 3 - SELLING YOUR HOUSE TO A REAL ESTATE INVESTOR|
|RETURN TO OPTION 1 - WORKING WITH A REAL ESTATE AGENT|
Terry is the Principal Broker at Regional Realty. He is a motivated Realtor specializing with investors and new home buyers located in the following areas; Alexandria, Ft. Thomas, Ft. Mitchell, Indepe....