Pros and Cons of For Sale By Owner Fargo
The number of For Sale By Owner homes coming onto the housing market in Fargo is constantly on the rise. It seems the trend is really catching up. In this age of technology, home sellers have better access to the information about how real estate transactions work. They are educating themselves about common home selling mistakes and as a result, feeling more confident when listing properties on their own.
In case you don’t know, FSBO sellers don’t hire a real estate agent and handle all aspects of the transaction themselves. They come up with the asking price, list and market their home and negotiate with the buyer and his agent.
There are pros and cons of listing your home as For Sale By Owner in Fargo.
Pros of listing your home as For Sale By Owner
- The biggest advantage is that you can save thousands of dollars by not hiring a real estate agent. The standard commission that you need to pay to a real estate agent is six percent of the selling price. If you sell your home for $500,000, you will pay a commission of $30,000.
- You can price your home competitively by saving on the brokerage fee. It will likely cause a bidding war and if you are selling in a seller’s market, you can in fact sell your home over the asking price.
- If you are selling in a buyer’s market, you can utilize the money that you save on the commission to offer incentives to buyers. You can sweeten the deal by offering to pay the buyer’s closing costs. You can also spend the money on making necessary repairs and installing new appliances to make your home desirable.
- Since you’ll have a complete control over the sale, you can come up with creating sales and marketing ideas to reach a larger pool of buyers. Most real estate agents follow the same standard marketing methods that they have been practicing for years. While they may be handling multiple home sales at a time, you will be more focused and determined to sell your own home.
- As a FSBO home seller, you have the advantage of hiring real estate agents to perform specific tasks. You can hire an agent to list your home in the MLS for a fixed fee. That way you won’t be obliged to pay a commission of thousands of dollars to a real estate agent.
Cons of listing your home as For Sale By Owner
- Most home sellers are prone to making the mistake of overpricing their homes. A real estate agent can help you determine the right price for the property by conducting a study of comparable sales in your neighborhood. So if you have decided to list your home as FSBO, don’t forget to price it competitively.
- You won’t have access to the area’s Multiple Listing Service (MLS), but as already mentioned you can pay a broker a fixed fee to get your home listed in the MLS.
- You may find it difficult to market your home as efficiently as a real estate agent can do.
- Selling a home is sometimes a very time consuming process.
- An agent will ensure that you comply with all your legal and financial obligations as a home seller.