Selling your home is likely to be one of the biggest transactions you will ever be involved with. Homes represent a substantial financial personal asset. For various reasons, some homeowners decide to sell their own homes. Perhaps they want to feel in control of the process or hope to save money by not paying an agent.
Whatever the reason, too often, they end up realizing the process of selling a home is much more complicated than listing it and getting paid. Our experts at Home Avenue offer this handy guide to some of the biggest For Sale By Owner pitfalls.
Hidden Costs Add Up Fast
One of the things FSBO sellers realize very quickly is how fast the savings from avoiding a commission can disappear with unforeseen expenses.
Some of these costs include:
● Inspection
● Credit Report
● Flyers
● Signs
● Photography
● Listing
With Home Avenue, sellers can take advantage of flat-fee rates with zero hidden costs and fees. We also provide cash back incentives through our rebate program for our buyers. Ask us about how we put more money back in your pocket!
FSBO Scams Can Be Costly
As careful as you may be, For Sale By Owner scams happen every day to unsuspecting sellers. Owners who lack expertise in real estate are unfamiliar with identifying fraudulent papers. These can come in the form of appraisals, loans, and other documentation.
Another popular scam is the foreign buyer deposit scam. Any buyer that brings up the need to wire money may be passing off a scam. Finally, third-party purchase scams are frequent problems in FSBO sales.
Sellers Risk Financial Liability
One of the biggest problems FSBO home sellers encounter is the issue of liability. While home sales happen every day and can go off without a hitch, seemingly minute details can derail the entire process.
If a licensed agent makes a mistake or misses something important, his or her E&O (Errors and Omissions) insurance will pay. If you are sued for listing something incorrectly during the sales process, you will be the one to pay out of pocket for your mistake.
Paperwork Headaches Can Overwhelm
One of the biggest reasons to go with a professional is the amount of overwhelming and confusing paperwork in the sales process. Most sellers possess only a superficial understanding of contracts.
Many will use downloaded contracts that they do not fully understand. This process can be overwhelming and difficult, leaving room for errors. A licensed professional possesses an expert level of understanding on all kinds of paperwork associated with a sale.
Some of those papers include:
● Occupancy agreements
● Lead paint records
● Property disclosures
● Sales contracts
Countless Other Headaches
FSBO sales come with a number of other headaches. When you use a real estate professional, they take over the open house. Conducting an open house yourself can be dangerous.
Open houses are tempting targets for thieves. Agents also understand the hassle of inspections. They have time and expertise to market a home well and can avoid bargain shoppers that tend to shop for FSBO homes.
Flat Fee Real Estate Solution in Minnesota
Long before you start taking the perfect photos or creating the ideal tagline for your ads, you must consider responsibilities you assume when doing “for sale by owner,” or FSBO. Save yourself the headache and put a competent team of professionals in charge of your home’s sale.
At Home Avenue, we offer flat fee real estate to save you thousands of dollars in commissions. Give us a call to for a free consultation at 952-929-7355, or you can message us at info@homeavenue.com.