With real estate prices still sinking like the Titanic, many are looking for ways to maximize possible profits on the sale of their homes. Many choose to go "for sale by owner," or FSBO (pronounced "Fizbo"), in an attempt to avoid paying real estate fees. However, although selling Fizbo means not coughing up the standard 5 to 6% real estate commission, it does not mean that Fizboans will not need to lay out considerable time and money.
It is simply not enough to stick a For Sale sign on the front lawn and hope someone will see it. Fizbo sellers bear the considerable cost and burden of marketing their property and will, at the very least, need to print color flyers and place advertisements in local newspapers and real estate guides.
Additional expenses will be incurred if a Fizbo seller wants to expose their property to the maximum number of potential buyers. One way to do this is to utilize the services of a company such as Sale By Owner Realty, which charges $399 to over $650 to post Fizbo properties on the MLS.
A Fizbo seller serious about selling should never discourage any potential buyer, even if they are brought to the property by a real estate professional who will likely demand a 2.5 to 3% commission for a successful sale. Fizbo sellers unwilling to pay that fee run the risk of real estate professionals not showing the property to their pool of potential buyers.
Selling property is fraught with legal issues, liabilities and stacks of disclosure forms and sales contracts. Fizbo sellers must understand all of these in order to complete a successful transaction. Many proponents of Fizbo transactions recommend Fizboans hire a fee-for-service broker, a title company and/or a real estate attorney to help navigate the choppy seas of disclosure agreements and sales contracts. At the very least, a third party should be present at the closing.
