Potential Advantages and Disadvantages of a For Sale by Owner Transaction

 Posted on April 20, 2023 in Real Estate

When preparing to sell your home, there are seemingly countless decisions to make. One of the most crucial decisions involved with a sale is whether you will work with a real estate agent or sell your home on your own. If you are the type of person who likes to take matters into your own hands and you are looking to reduce expenses, you may be interested in a “for sale by owner” (FSBO) transaction. However, it is important to be aware of the advantages and potential disadvantages of an FSBO sale.

Why Would Someone Want an FSBO Sale?

The main reason that homeowners look into FSBO sales is that they want to avoid paying a commission fee to the listing agent. Depending on your home's value, a commission fee can represent a significant financial loss. Selling your home on your own avoids this expense.

Another reason people may want to sell their home without the assistance of a real estate agent is to streamline the process and complete the sale more quickly. According to one study, just under 80 percent of FSBO homes sold within two weeks. FSBO is also a popular option for selling a home to a family member, friend, or someone the seller already knows.

FSBO also puts you in control of the sales process, allowing you to handle the sale according to your needs.  

Potential Disadvantages of an FSBO Sale

FSBO sales can be beneficial, but it is important to do your research and be aware of the potential pitfalls of this type of sale. There is a risk that you could over or underprice your home, and negotiating an offer can be complicated and emotionally exhausting. Furthermore, there are certain legal procedures you will need to follow to sell your home without a real estate agent.

Working with an experienced real estate lawyer is highly recommended for FSBO sales. Your lawyer will help you negotiate a purchase agreement, ensure that appraisals and inspections are conducted correctly, and clearly define how closing costs will be handled.

A lawyer can also conduct a tidal surge which involves scrutinizing public records to discover any liens or claims against the home that could jeopardize the home-selling process. Finally, an attorney helped streamline the closing process, allowing the transfer of the home to go as smoothly as possible.

Contact our San Antonio FSBO Real Estate Lawyer

If you are interested in selling your home without a real estate agent, contact skilled San Antonio real estate attorney Geoffery Ray Mayfield for help. Geoff has more than 15 years of experience in real estate matters, including helping clients sell their homes through an FSBO transaction. He can help you avoid common mistakes and ensure that the sale is handled correctly and efficiently.

Call Geoff Mayfield, Attorney at Law at 210-535-0870 for a free initial consultation.

Source:

https://www.nar.realtor/sites/default/files/documents/2020-profile-of-home-buyers-and-sellers-11-11-2020.pdf