For Sale By Owner is a real estate term that means that sellers are choosing to bypass enlisting a real estate agent. In many ways, this approach can be beneficial. For example, the seller eliminates having to pay considerable commissions and other fees.
Nonetheless, an FSBO sale is not necessarily straightforward, and there are some challenges that sellers may have to overcome. Here are a few concerns to keep in mind if you’re on either side of an FSBO transaction.
A lack of experience
If you have sold multiple properties, then experience may not be much of an issue. However, if this is your first time selling a home, then everything will be new to you. For example, do you know how to price your home accurately? This can certainly be done without a real estate agent, but it requires careful due diligence. What if a prospective buyer comes in with a lowball offer. Will you be able to hold your own in potentially intense negotiations?
Contacts
Real estate agents typically have access to large networks. Oftentimes, they manage to complete sales quickly based on the contacts they have at their disposal. If you are an FSBO seller, you may have to work extra hard to drum up the interest required to complete a sale.
Disclosing the right information
When selling your home in Ohio, there are certain things that you will need to disclose to prospective buyers. If there are any material defects with the home, such as if the roof leaks in heavy rains, then these will need to be disclosed. One potential way to get around this is by including an “as is” clause in the purchase agreement.
It is certainly possible to sell your home as an FSBO seller, as long as you have all of the relevant information. Similarly, it is certainly possible to benefit from an FSBO scenario as a buyer, despite a need to make sure that a seller is doing all that they need to under the law. Seeking legal guidance will help you to begin the process on the right footing.