Considering FSBO to Sell Your House in North Park? Here’s What You Should Know First
Interest in the North Park area continues to spread due to the town’s unique eateries and countless entertainment options, and also because of the architecture. Being home to older properties, North Park is known for its craftsman style bungalows, featuring local wood, glass and metalwork that are both simple and elegant. If you need to sell your house in North Park, you are likely considering your 3 options:
- Traditional Route: selling through a real estate agent
- FSBO: selling your house on your own
- Direct: selling direct to a cash buyer
If you own a home in this area and think that the demand is great enough to take on the sale of your North Park home on your own, we’ve prepared a quick guide to help steer you in the right direction. We understand wanting to avoid paying heft agent commission fees, but there are some aspects of a FSBO sale that you may not be familiar with.
Why People Choose FSBO to Sell Their Homes
Data shows that in 2015, 8% of home sales throughout the U.S. were FSBOs. Paying a real estate agent’s fees is usually what leads sellers to take on the mission alone with an FSBO sale. Who doesn’t want to maximize their profit? I wouldn’t blame you. This method also allows sellers full control over the negotiation process of the sale. This includes the price of the home, and every aspect of closing (making requested repairs, etc.).
In addition, many homeowners like the idea of cutting out the middle man and leaving the interests of the buyer and seller, only. Because this process is often an emotional one, people take comfort in knowing that their interests are being represented 100% of the time.
But, the money that you think you are going to save comes with a bit of baggage. There is much debate on whether the pros of this method outweigh the cons, but we will let you be the judge of that.
Cons of an FSBO Sale (Don’t Say We Didn’t Warn You)
The outcome is usually quite the opposite of what sellers expected: unexpected costs, unexpected time, and unexpected stress. Here are some of the things you would need to consider:
- Marketing Costs: Out of pocket expenses include having to list your home on the MLS, paying for professional photos, advertising, and the creation of signs, brochures, and other collateral.
- Pricing: Home sellers have an emotional connection with their home, and tend to think it is worth more than the market will bear. Overpricing will result in your home sitting on the market for longer (and either not selling at all, or selling for much less).
- Paperwork: YOU are responsible for the legal paperwork. Title searches must be made (and paid for by you), and you will have to make sure the buyer’s loan documents are in order.
- Fix-it-First: You will still need to fix up your home and make it marketable.
- Exposure: Even if your home is on the MLS, you likely will not have the resources or connections to get your home to stand out amongst the sea of thousands.
- Stress: Most sellers become stressed and overwhelmed with all of the steps included in the selling process. Dealing directly with buyers who are likely stressed as well, makes things even more difficult and emotional. You have are faced directly with a person or family who wants to buy your home.
- Time: Statistics show that FSBO transactions sit on the market for much longer than Realtor sold properties. FSBO sales not only sit on the market for a longer period of time, but 20% of them end up relisting on the MLS, which converts to 68 days longer than a Realtor listed home.
Here is a nice presentation of everything discussed above. All of the reasons homeowners fail in selling their homes on their own!
Tips in Ensuring Your FSBO Goes Smoothly, if You Choose this Route
If you were bracing yourself, and still are not scared of this method– let me give you a few helpful hints. This method works best for people who have spare time on their hands, and live in neighborhoods with similar properties. The spare time is a non-negotiable. If you work full time, please flip to the next page.
Also, living in a neighborhood with comparable homes will give you an edge in determining your home’s selling price. You can rationalize this without the help of a Realtor, which is nice. But, if your home is unique and is said to have “character,” it might be a bit difficult to come up with a rational listing price.
Consider All of Your Options in Selling Your House
In summary, there is a lot of preparation required before you can set out to sell a house on your own. The process is a lengthy and complicated one. Without a background or extensive knowledge in real estate, gliding through the process is IMPOSSIBLE. Be prepared to spend a significant amount of time and energy if you wish to do this without any help. Selling a home, whether with a Realtor or on your own, will take a lot of time, energy and patience. Your alternative, choice number three, would be selling your house direct to a cash buyer like us. In this route, you’d still avoid paying agent commission fees, and in the end you would really save a lot of time. The choice is yours!