When the owners of houses want to sell their own house without the help of any real estate agent or broker, they are called for sale by owner. The National Association of Realtors did a survey report in 2006 that showed that only 7 percent of all sellers were FSBO. There are a lot of hurdles that they have to face when selling their house without the help of any professional. Some of the hurdles may be marketing techniques, timing among others, preparing and designing the house for sale and negotiations.
They need to undertake these hurdles and have to do proper planning because only then you can sale the property successfully. There are many advantages of having for sale by owner, because when there is no middleman, there are no commission fees, so profits are more. Another benefit of this method is that when the owner of the house makes the sale himself, he takes care of all the conditions and clauses in the contract. In case you take the help of a real estate agent for selling your house, the broker is more concerned for the commission and thus forgets other aspects.
If you want to go for FSBO, then you must take care of all the paperwork yourself, and therefore you need the complete knowledge of the market. First of all, you must consider the market price of your house. If you overestimate the cost, you will not find buyers, and if you underestimate the price, you will be at a loss, so proper cost analysis is required. Once you get the market price of your property, you need to get all the papers that are needed to do the sale.
After all these things, now you have to place an ad of your house to attract potential buyers. For this, you can use multiple listing services, and there are various websites for this purpose. You can get the opportunity of allowing tour of your house as a lot of websites give you this kind of service. If you do not want that, you can just include the images of your property so that buyers can have an idea about your property.
You have to face many challenges and hurdles in spite of having various attractive options, like saving in commission etc. You need to sort out all the matters yourself since there will not be any agent or broker to help you out.