Pitfalls of "for Sale by Owner"

by : Tyler Fawcett

If you have decided to sell your home, you have probably realized that there is more than one way to go about it. In recent years there has been much talk about the FSBO, or "for sale by owner" method of selling. Unfortunately there are some definite disadvantages to selling your home without the aid of a trained professional. Many of these disadvantages are related to the actual "legwork" involved in the process that is normally handled by a Realtor. There are a number of aspects involved in the sale of a home with the FSBO method where owners can find themselves at a loss, literally.

One of the best assets that a Realtor or agent can offer is the surety of showing your home to qualified buyers. A agent knows that showing a home to unqualified buyers can be a waste of time for themselves and for the home seller. For this reason agents concern themselves primarily with buyers who have been pre-approved for financing. Many people who have sold their own homes have gotten the sale process tied up by a buyer who cannot secure proper financing. A contract should never be drawn up until the pre-qualification ha been verified.

Another area where owners can find themselves overwhelmed is in the actual contract negotiation. Realtors and agents are trained in the execution of contracts and paperwork related to the sale of a home. This process can be amazingly complex and requires the services of attorneys, title or escrow agencies, and notaries. Contracts can be a time consuming and frustrating things to deal with properly. Are you confident enough in your ability to ensure that all aspects of the contract are correct to put your home on the line? This is not to say that it cannot be done, and done properly, simply that the process is streamlined and facilitated by a trained professional.

Remember, unless your home sells, the agent does not profit. It is in their best interests to ensure that your home sells quickly and for the best profit possible. And they can save the owner much time and heartache if things do not go as planned.