Should I sell privately as a For Sale By Owner (FSBO)?

Thousands of homeowners wonder whether or not to sell privately. This is a question that gets a lot of attention on the internet and also generates a huge amount of misinformation. Many people want to sell their own properties, but fear the “hidden” problems that may arise to cost them money or cause them injury. Fear is the number one reason people are willing to pay a real estate agent to sell their home. Unfortunately, this fear is often unfounded and all too often promoted by someone with a vested interest in taking your money to sell your property.

For some time now I have searched the internet and found many articles that claim to promote private selling, when in fact they are designed to discourage you from taking on this task. Obviously, such articles don’t go straight out and say “Hey, don’t do it!”, but instead tell you all the seemingly bad things that “might” happen if you dare to try. They paint such a bleak picture of selling privately while “cheering up” the reader, that no one would attempt it if they wanted to follow the advice in such articles. This kind of false help angers me, and I enjoy the process of “busting” the myths that are promoted as truth. This article will cover, however briefly, the reasons why many people should or should not sell on their own. I’ll try to dispel the vast amount of misinformation on the subject of private selling, and in the end, hopefully, you’ll be in a better position to choose for yourself whether or not to sell privately.

The first is the first. Who am I and what do I know about Real Estate? Well, I am an experienced real estate salesperson (20 years), now retired. In my years, I have sold millions of dollars in residential and commercial real estate to all kinds of people, including new homes for homebuilders, plazas and office buildings for corporations, and resale homes for people just like you. I have developed land and have even been a part of the largest home builders in the country setting up foreclosure sites and selling houses. I have seen good times and bad, good things and bad. I guess it’s fair to say that I understand real estate, the process of selling, negotiating, and all the great things that allow one to succeed in one of the most competitive industries to date.

In my humble opinion, private selling is not for everyone, but I honestly believe that most people can do it quite easily and be successful. Hopefully by the end of this article you will be convinced of this, so without further delay, let’s get started.

First some basics. You’ve probably heard the term FSBO (pronounced Fizz-Boh). This is an acronym to describe the term For Sale By Owner. Today, these two terms are used exclusively to refer to a Private Seller. Let’s go.

For the next section, I’ll answer some simple questions that are common on this topic to expose the truth about some misinformation some want you to believe.

First question. Do you need a license to sell privately? To the best of my knowledge, no license is required in any US state or Canadian province to sell property privately. In fact, your right to sell privately is protected by law. Throughout this article, I suggest that you verify my information with your attorney. I do this for two reasons. First, I am not a lawyer and therefore cannot give you legal advice. Second, once you consult with your attorney, you’ll find that I’m giving you all the right stuff, and that will make you (and I) feel better. So check with your attorney before doing anything. Enough to say, move on.

How long will it take to sell my property? First, let’s make sure you know what question I’m answering here. I am NOT going to try to tell you how long it will take you to find a buyer to process a sale. I’ll talk about the time it takes to market a property on your own to give you an idea of ​​what kind of time commitment you’ll need to get it done right. The answer, surprisingly, is very little time, one or two hours a day at the most. In fact, once you’ve taken the time to set up your sale, which is something I’ll talk about in another article, it will take little to no time unless you’re showing your property to a potential buyer.

What is the general process of selling a property privately? In many ways, it’s exactly the same as selling with a real estate agent. Here is the process of selling a property, privately or not. First, the property is advertised to let the public know that it is available for sale. Potential buyers inquire about the property, ask questions, and schedule an appointment to view it. Potential buyers come to view the property, sometimes more than once. If they like the property, they make a written offer on a legal form. You (or your agent) and they (or your agent) negotiate the terms of the offer, the price and the closing date. Then, once everyone has agreed and all parties have signed the offer, it all goes to the attorneys so they can do their thing to effectively convey title, exchange money, etc.

It sounds pretty straightforward, and it usually is. These are the things you will need to do on your own when selling privately. Before we get into it, it’s worth mentioning that I’ll cover each of these tasks in future articles, so don’t worry if you’re not sure about any of them. Here we go. You will first need to market the property, show it to prospective buyers, and negotiate the terms of the sales agreement. Once the agreement has been signed by the Seller and the Buyer, your lawyer will do the rest for you. Also, be sure to get the contact information for the Buyer’s attorney. Your lawyer may need this information to start the process with the other lawyer.

I’m going to close this article here for now, but I’ve written several articles describing the private sale process in great detail, and I want to direct you to a great resource at ByOwnerInsight.com where you can read all about preparing a property for sale, marketing it effectively and negotiate the purchase offer. This entire website is dedicated to the one goal of teaching everyday people how to successfully sell their own property and save thousands of dollars in commissions, but best of all, it’s all completely FREE for you to use! I have pulled out all the stops, while giving you all the trade secrets on selling your property privately! All I ask is that you share the above website address with others so they too can benefit.