CHAPTER 3 Pitfalls of FSBOs
You’ve sold a few automobiles in your day without using a dealer, and you’ve sold some antiques online. You’ve done well by both and consider yourself an astute trader and businessperson. So, now the time has come to sell your home, and you find yourself considering the option of selling it yourself, i.e., For Sale By Owner (FSBO) to try to save on the real estate commission fee. True, some people can sell their property outside the confines of a contractual agreement with a REALTOR®, but the harsh reality is that most can’t, and don’t, and will spend significant time and effort spinning their wheels while qualified buyers come and go, without giving their property any serious thought, or, worse yet, never even knowing it was available. Maybe this is the reason why in 2021, according to the National Association of REALTORS®, “90% of sellers were assisted by a real estate agent when selling their home”. FSBO is the process of an owner selling a piece of real estate without using a real estate broker or real estate agent. In a FSBO transaction, a seller may employ the services of marketing or online listing companies or market their own property, there’s no commission paid on the sale. This is the perceived value of a FSBO. However, sellers often need to pay for the services of an attorney to handle the documents and intricacies of a real estate sale.
THE TIME FACTOR OF FSBO
One detriment to the seller of a FSBO transaction, and a benefit 15
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