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Should I sell my home without a realtor?

On Behalf of | Oct 16, 2023 | REAL ESTATE LAW - Real Estate Law |

In San Francisco, when people decide they want to sell their home, they will automatically think about getting a realtor to handle the transaction for them. This is viewed as the easiest solution. However, the fees can be extensive and many might benefit from simply foregoing that route and selling the property on their own. Known as “for sale by owner,” it is imperative to understand the entire process before moving forward.

Why might FSBO be a better way to go?

The most obvious reason to use an FSBO strategy is to save on the costs for a realtor. The realtor will do much of the basic work with selling the property and take a chunk of the sale price. In general, it comes to at least 5%. In San Francisco, where property values are high, this can be a significant sum. Saving that money can be enticing.

People who have the time and the basic knowledge should consider FSBO. That will include preparing the property to be shown to prospective buyers, advertising it and completing all the legalities that go along with it. Even people who have worked in business, sales and negotiation could make missteps.

Pricing can be a challenge for those without experience in real estate. Looking at local properties that were recently sold can help, but people do not want to go too low so they sabotage the money they are saving from not using a realtor. Nor do they want to go too high so the home is difficult to sell. This is particularly important if they are purchasing another property to live in at the same time.

Professional help will still be important

Just because a person is selling their home on their own, it does not mean they will not need any professional help at all. Getting legal advice will not only perform much of what the realtors would do, but it can be a protective device with various issues that those inexperienced with real estate sales might miss. In addition, the legal assistance will likely cost substantially less than the realtor’s fees.

Dealing with real estate law, somewhat confusing issues like escrow, understanding how to craft contracts, addressing conflicts that might come up during the negotiation and sale, and having a grasp on the nuance of selling a home without going through a realtor might be intimidating, but having the right guidance can ease the process and be a time and money-saver. When thinking about FSBO, it is wise to know how it can be beneficial and to take the necessary steps to sell the property while avoiding costly errors.