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Benefits of For Sale By Owner

May 20th, 2008

There are two ways to sell your home: by going through a realtor and by doing it yourself. As with anything that requires professional assistance, selling your home with the aid of a realtor is going to cost you. A realtor will handle all facets of your home sale, from advertising to negotiation to working through the closing. On the flip side however, selling your home for sale by owner can also cost you, but in a much different way.

The choice comes down to the question of what you would most like to save, time or money. By using a realtor you will save yourself some time. If selling your home for sale by owner, you will indeed save yourself loads of money because the only thing you are paying for out of pocket is the cost of your advertising methods.

Selling your home through a realtor can be not only an expensive method but also a difficult selection process when trying to decide which real estate agency and agent to go through. Once this decision is made, you must now work with the realtor to negotiate your terms and conditions for the sale of your home.

The realtor is paid according to the final selling price of your home. A commission of anywhere from 5 to 7 percent is charged at the closing. It goes without saying in this situation that a benefit of for sale by owner is the savings associated by not having to pay your agents commission. Simply put, you get to keep the proceeds of selling your home if you do it yourself; and that can total thousands of dollars in your pocket.

Your for sale by owner home does not get individual exposure on the level that would be given to it if you were to use a realtor. You will be solely responsible for exposing your home to potential buyers.  CentralWI By Owner will help you expose your home to more buyers than you could do by yourself.

Benefits you’ll receive by listing with CentralWI By Owner include: a for sale sign, an online listing, and printable property brochures. A URL with your homes address will also be purchased, which you can use to direct more buyers to your listing. And because over 80% of home buyers start their search online your home will naturally be exposed to more buyers as they bounce around the internet finding their next home.

Realtors are able to list your home on the MLS, or Multiple Listing Service. This is a long list of homes being offered for sale by numerous real estate agencies. Once again, your for sale by owner home will not be given the specific exposure it could be given if you do your own advertising. The MLS has taught home buyers to expect to see pictures, room sizes and a description of the respective homes. Are you able to do that?

The true benefit of selling your home for sale by owner versus utilizing a real estate agency is the control factor. You are in complete and total control of the entire transaction from start to finish. This is often the most influential factor in selling for sale by owner. With yourself in the proverbial driver’s seat, you’re free to advertise in the way you see fit and to use the method you feel is most appropriate. You are also free to keep all profits from the final sale, and this is usually enough to reassure the seller that the for sale by owner route is the right path to take.

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For Sale By Owner Property Disclosures and You

May 20th, 2008

As a for sale by owner home seller, you are responsible for completing many of the steps that a real estate agent would typically handle for you.  Most likely you’ve already fixed up the interior and exterior of your home, set a reasonable asking price for your home, and have begun advertising your home for sale.

Now you’re ready to accept an offer on the home, right?  Well, not quite.  Before you begin entertaining offers from prospective buyers, you first need to prepare property disclosures.

Property disclosures for a for sale by owner home includes the Real Estate Condition Report. This is information that pertains to the property’s condition or location.  Examples include information like the age of the property, issues with the property, and easements that might extend beyond property boundaries.  Any of these facts could affect the buyers decision to purchase the home and must be disclosed.

You are required to fill out property disclosure forms about your home.  If you are not sure what property disclosures you have to give you can consult a real estate professional such as an agent or an attorney.  These professionals are well versed in real estate law and can give you guidance on the necessary information to give your buyers. You can also contact me as well and I’d be happy to answer any questions you may have.

Another example of a property disclosure that you must complete is the lead-based paid disclosure if your home was built prior to 1978.  This is a property disclosure that is required by federal law and must be provided regardless of the state where you selling your home.  With this property disclosure, the buyer is given 10 days to conduct an inspection for lead based paint.  You could face a lawsuit if this is not done and the buyer later discovers that the home indeed has lead paint.

Buyers must also be given material facts.  This is any information about the home that would affect the buyer’s decision to purchase or the price they would offer for your home. You are required to tell buyers any defects about your home, especially if these defects could potentially cause the buyer not to ultimately complete the purchase of your home.  At first thought, you might be cautious to reveal this information because it could cost you a sale; but consider the alternative of being sued for thousands of dollars because the buyer was negatively impacted by a material fact that you were required to disclose.

While it might not first seem like it, property disclosures are designed to protect both the buyer and the seller of your for sale by owner home.  Buyers are given all the facts they need to make an informed purchase decision.  Sellers are protected from lawsuits by buyers that claim they were not informed.  You should keep a record of property disclosures given to your buyers, especially the buyer that ends up closing the deal.