11 First-Time Homebuyer Tips
Searching for your first home? Here are some tips to help the process.Read more about 11 First-Time Homebuyer Tips
When you sell your home, carving off a piece of that big check and handing it over to a real estate agent is an unpleasant moment. It’s hard to resist wondering whether you could have sold your home yourself and kept the agent’s commission. There is an alternative that lets you DIY – For Sale By Owner or FSBO (pronounced “Fizzbo.”). According to the National Association of Realtors, about 7% home sales are FSBO.
By cutting out the middleman and selling your house by owner, you avoid paying thousands of dollars to a selling agent. But selling your house yourself can cost you a lot of time and introduce new headaches and risks. And you might not save you as much money as you think. Here’s how to tell whether the FSBO path is right for you:
Average real estate commissions are usually between 5-6%. So a seller with a $200,000 home owing 6% commission would pay $12,000 to real estate agents, typically split 50/50 between a buyer’s and seller’s agent. “I support sellers who want to give it a go, because there’s real money on the table,” says New York-based real estate attorney Michael Moshan.
Still, saving 5%-6% seems like a good idea; unfortunately it’s not that simple. Here are a few reasons why:
Here’s where you’ll need to consider what your time is worth. Because FSBO will require time, legwork and brainwork.
Although there are many challenges to selling a home, there can be upsides. For the right person, it can be the way to go. If you enjoy research and have an interest in the real estate market, staging and selling your own home might be a good way to see if that’s a career you’d like to pursue in the future. If you have both the energy and the interest, you might find a new career path that you truly enjoy. You can find plenty of online resources that help you navigate the waters and find out what needs to be done at each step along the way.
Regardless of whether you sell through a real estate agent or become a FSBO seller, make sure that your home is always protected. Nationwide’s homeowners insurance options can make sure your residence is securely covered.