It sounds obvious and I guess it really is. What is a for sale by owner? It’s something being sold by the person or entity that owns it.
Mostly though when someone hears or thinks about a For sale By Owner it means a house for sale. A house for sale by the person that owns it or more specifically without the help of a real estate broker.
Why would someone want to go through that pain?
Why A For Sale By Owner?
The number one reason a person sells their house by themselves is to save money. You could consider it making money since your essentially paying yourself rather than an agent.
What’s The Cost
Selling your home yourself without an agent saves you money but costs you work, and time. In economics there is a term called opportunity cost. Opportunity cost is defined as “the loss of potential gain from other alternatives when one alternative is chosen”.
In the case of selling your house yourself the question is what is your time worth? is there something you could be doing that is more valuable than the time it will involve to sell your home? That will depend on the price of your house, what kind of deal you could make with a real estate agent and how much money you make, or your net worth.
The price of hiring a real estate agent like myself is very expensive and it amazes me when people don’t blink at the price. For instance if I “list” your $300,000 home and charge the what consumers consider normal rate you’ll pay me $18,000. Did you catch that? $18,000. You can do the math or I can tell you that’s 6% of the sale price.
Think for a minute what you could do with $18,000.
In a sellers market like the we’re in now, 2019 going into 2020, a house sells really fast as long as it’s priced right. Often the next day or sometimes even the same day. When you factor in that most home buyers are finding the homes they want to see online themselves you have to ask yourself if you really need an agent. Home buyers are searching real estate themselves on sites like Zillow and Trulia. It’s free to advertise your for sale by owner on many online real estate portals like Zillow.
As far as the monetary aspect it can cost nothing at all for the actual marketing. You may need to spend some money getting ready to sell but the sale itself is not that difficult.
How To For Sale By Owner
There are a million and one sites and blog posts on the internet that will give you the basic steps to sell a house. If you want or need more detail I can help you with that by teaching you the same thing I teach other agents. The best practices to squeeze the most money possible out of a home sale.
There is enough information on my site here to get you through it for free.
Whatever you decide to do I know for a fact that in the end, when it’s all said and done, you will be very pleased with yourself.
Now just to figure out what to do with all that money.