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The benefits of a for sale by owner transaction

On Behalf of | Aug 29, 2022 | Selling Real Estate |

The housing market has been up for a while now, which means that your home may have a significant amount of equity built into it by this point. Does that mean it’s time to sell?

Maybe, but that’s a decision that is entirely up to you and is unique to your set of circumstances. However, if you determine that now is the time to sell your home, then you might be wondering how to maximize your profits. One option that you might have at your disposal is to forego utilizing a real estate agent and instead put your house on the market as a for sale by owner property.

Why you might want to consider a for sale by owner transaction

There are a lot of benefits to selling your home on your own. These benefits include:

  • Paying less in commission: If you sell your home in this fashion, then you’ll probably save money since you’ll only be working with one real estate agent instead of two. This means that you could end up saving as much as 6% of the sale price, which, given the value of your home, can be tens of thousands of dollars.
  • Retaining control over how your home is listed and marketed: This includes setting the asking price and determining how the property should be described.
  • Controlling the showing schedule: By determining when you show your home you can maintain your calendar and fit in showings when it’s most convenient for you.
  • Driving for top dollar: You’re also representing yourself in these actions, so you can drive to maximize your profits.

So, if you’re interested in maintaining control over the entire process, then conducting a for sale by owner transaction may be the best route for you. However, before you commit to that direction, you should think about the risks associated with for sale by owner transactions.

What are the risks of selling your residence on your own?

Although the for sale by owner process can net you more proceeds, it isn’t without its risks. For example, if you’re not careful, then you could end up coming face-to-face with any of these issues:

  • Lack of knowledge: One difficult thing about sale-by-owner transactions is that you’re going to have to know how to competently navigate several areas. While this includes finding an appropriate list price and targeting the right buyers, it can also include matters like dealing with inspections and navigating title searches and issues related to them.
  • More time: On average, homes that are listed by owners without the assistance of a real estate agent tend to take longer to sell. Some of this may be attributable to the fact that many sellers in this situation have a day job, so they simply can’t expedite the process as quickly as a real estate agent can. But that may not even be an issue if you’re not on a tight timeline to sell your residence.
  • Knowing how to negotiate: You might get multiple offers for your home, but how do you negotiate with prospective buyers to get the best deal possible? It’s harder than it may seem, especially given the fact that there can be more at stake than just the price of the home.

Navigate the for sale by owner process with confidence

Just because you’re thinking about foregoing a real estate agent doesn’t mean that you have to be left out in the wind on your own as you try to sell your residence. In fact, having some sort of help may be the best way to alleviate the issues mentioned above.

Therefore, before deciding whether to sell your home on your own you might want to speak with an experienced real estate law firm who can help advise you and give you a sense of what the process will look like. If you choose to be represented by one of these attorneys, then you may be able to enjoy the benefits of the for sale by owner process while avoiding many of the risks associated with it.