Things to consider with ‘For Sale by Owner’
Updated: Nov 29, 2021
You need to sell your home quick, but you’ve done some estimates and can’t stomach the cost of paying Realtor commissions. For Sale by Owner (FSBO) sounds like a good alternative to paying these costs then, right?
Choosing FSBO can be attractive, but there are issues you want to be aware of when taking this path.
It’s likely that you have plans beyond the current house you’re living in. Maybe you have to finance the next house, but you can’t begin the financing process until your current house sale closes. Now you’re waiting on the perfect buyer to come along and close within your timeframe.
Buyers can be very picky when they’re choosing their own home. The majority of retail home buyers find repairs that they (or their lender) want completed before closing. It can take weeks, months even, for these to complete and turn your quick close into a drawn-out headache, even in a Seller’s Market. Selling to an investor helps you to get around these time-consuming delays.
Open houses, Scheduling Appointments
It’s up to you to get the buyers in the door. Advertising, phone calls, scheduling showing appointments are all burdens you may not want to take on. Dealing with curious window-shoppers can cause a big headache and steal your valuable time.
Double Mortgage Payments
Everyone wants to close quickly, but you may find FSBO takes 2-4 months in the current market, and that’s assuming your buyer secures financing. A significant percentage of sales fall through because of financing problems. If you find yourself relocating for work, you may not be able to handle two mortgage payments for a long stretch,
Securing the money to catch up on payments and/or taxes.
Consider if you owe money or have liens against your property. Selling to a retail home buyer usually won’t go through, however, you likely can still sell to an investor.
As an investor team we are well positioned to get past these frustrating situations to get you the cash you want fast. Make sure you get to know your investor and take advantage of our knowledge and customer focus. Summit Home Solutions is your one stop partner to make your sale easy!