FSBO means “for sale by owner,” and is a term used to describe a homeowner who handles the process of selling their residential property without help from a real estate agent. This type of direct sale may save a lot of money, and does not have to be a headache.
According to Investopedia, one common reason homeowners may decide to opt for a FSBO transaction is to avoid paying out commissions to real estate agents otherwise involved in the sale. Whether or not the homeowner actually saves money or if they feel like this option is potentially worthwhile may depend on many factors, including:
- Their understanding of the process.
- Their willingness to put in the work.
- How they navigate the legal requirements to complete the transaction.
By enlisting the right type of support for technical parts of this process, such as the tasks related to contracts and finalizing the transaction, you may still be able to save money without having to try to understand the legal requirements on your own.
Potential Benefits of FSBO Transactions
The FSBO process may help homeowners save thousands of dollars in the sale of their home. While FSBO means the homeowner has to put in the work a real estate agent normally would, it also means the property owner keeps the potential agent’s commission and some other types of expenses generally included in the closing costs paid by the owner.
According to Realtor, closing costs from real estate agents may range from six to ten percent of the sale price of a residential property. This means on a $200,000 home, going FSBO may save the seller up to $20,000.
While a real estate agent already knows the steps to listing, marketing, and selling a house, and may be able to navigate this process quickly or without as much stress, a homeowner must ask themselves whether this is worth upwards of tens of thousands of dollars? For some, the answer may be “no.”
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Responsibilities of the Agent Fall on Homeowners in FSBO Sales
If you decide to pursue an FSBO sale, there may be a lot of research and work involved. While you would not have to pay a real estate agent a commission, you may need to handle all the tasks they would normally take care of on your own, including:
- Identifying comparable properties nearby.
- Pricing the property at a level that may sell but does not potentially leave money on the table.
- Marketing the home, including staging, showing, and more.
- Preparing the paperwork and assuring you follow all applicable real estate laws.
Contracts and other legal paperwork may also be important to consider in a home sale, and there are specific rules you may need to follow. More than any other step in this process, this may be the one that gives owners the most trouble. You may not have to use a real estate agent to help you with this process, and you do not have to try to wade through it on your own. There is another potential option.
Getting Help and Support With Your FSBO
Selling your home FSBO does not mean you have to handle every step on your own without guidance or support. You may be able to enlist the help of a real estate lawyer to help with the legal aspects of your for sale by owner property. A law firm may be able to help property owners and buyers with a variety of real estate legal services, including contracts and closings.
If you or the seller of a home you are considering are moving forward with an FSBO sale, a lawyer may also be able to help you with planning, representation, legal advice, paperwork, notarization, and other services.
Speak to Our Team About Support for Your FSBO Sale
If you are planning to sell your home on your own without the support of a real estate agent, you should at least consider having someone handle your contracts and legal paperwork so you may feel confident the sale adheres to all laws and best practices.
At Bogin, Munns & Munns, we have 13 locations throughout Central Florida, or we may be able to meet you at the home or in another convenient location. In addition to our main office in Orlando, we have satellite offices in Clermont, Cocoa, Daytona, Gainesville, Kissimmee, Leesburg, Melbourne, Ocala, Orange City, St. Cloud, Titusville, and The Villages.
You may reach Bogin, Munns & Munns at 407-578-1334. We may be able to explain our services and determine how we may be able to help you with the sale of your home through a consultation.
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