Advantages of FSBO for Buyers and Sellers

Article Details 

Advantages of FSBO for Buyers and Sellers

Date Added: February 08, 2008 04:55:43 AM
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Category: For Sale By Owner

 

The concept of the "For Sale By Owner," or FSBO, home is relatively new in the United States.  Until the mid-1970s the overwhelming majority of American homes were sold through a realtor, and it is only in the last couple of decades that FSBO home sales have become so popular and profitable.

These days, there are many advantages of FSBO home sales, for both the buyer and the seller.  In this article we will take a look at how selling your home FSBO benefits both you and your potential buyer.

Obviously, one of the main reasons that FSBO homes have become so popular is because of the potential savings to both buyers and sellers. FSBO allows you to "cut out the middleman" by not using a realtor, saving a great deal of money that would normally be paid to the realtor in commission.

For many people, this is the greatest benefit of "for sale by owner" home deals.  And although taking the realtor out of the equation does require the home seller to do a little more work, it is a very small price to pay to save tens of thousands of dollars when selling a home.

And it is not only the seller who saves money with an FSBO. By eliminating the realtor's commission, sellers are often able to offer a better deal to the buyer, producing a win-win situation where everyone saves money.

But other than the significant savings involved in FSBO home sales; there is also the advantage of control.  Selling a home "by owner" allows the seller to retain control of every aspect of the sale.  Sellers enjoy a far greater degree of flexibility on the terms of the sale by going the FSBO route. For example, a seller can choose to "self finance" the sale of the home, or even offer the property on a "lease to own" basis.

The advantage to buyers of this extra control and flexibility, is the ability to deal directly with the homeowner, and even offer alternative terms, such as a higher down payment in exchange for a reduced overall price, or proposing a "lease to own" arrangement.

Finally, FSBO benefits the homeowner in one other very important way: perception. In general, buyers have the perception that FSBO homes are a better deal than going through a realtor.  This can really work to your advantage as a homeowner, and attract more attention to your property than similar homes being sold through a realtor.

For better or worse, most people have the belief that realtors often attempt to exaggerate the price of a home in order to squeeze the most possible commission out of the deal. While this seems like a good thing for the seller, in reality it can often cause your home to set for months or even years unsold -- and certainly no one wants that.

All things considered, FSBO is the fastest way to sell a home, saving both the buyer and seller money, and allowing a far greater degree of control and flexibility over the terms of the sale.

 

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