Selling your own home comes with a slew of added costs, including fees and high commissions, not to mention a complex sale process. That’s why the advantages of selling a house by owner can be pretty enticing for many homeowners regardless of the reason, even if it’s selling after filing chapter 7 bankruptcy.
However, you’ve also probably heard stories about how complex doing a “for sale by owner” sale can be. In an area like Philadelphia, Pennsylvania, where there tends to be a lot of real estate for sale, an FSBO sale might worry you even more.
Before you brush off the idea as too much work or overly complex, let me tell you the process, although arduous sometimes, it can leave you with higher profits and a more satisfying outcome.
Stick around to learn more about how choosing an FSBO sale can be better for you than going through a realtor.
Should You Sell Your House By Owner?
Any home sale comes with its own pros and cons, and an FSBO is no exception. That being the case, is it wise to sell your home without the help of a licensed real estate agent? To answer that question, let’s look at some of the pros and cons.
There are a few reasons selling your home by yourself might be a good idea. A few examples are:
1. You’ll make more money because you won’t have to pay an agent commission.
2. You’ll keep control over every aspect of the sale.
3. You won’t have to worry about an agent dividing their time between your home and a dozen others.
4. You won’t be on an agent’s timeline.
5. If you already have a buyer lined up, a real estate agent might be an unnecessary expense.
6. If you’re in a high-demand market, you’ll probably sell quickly.
Although these pros are mostly a matter of convenience, they’re conveniences that can save you time and money. So, if you need to sell your home and don’t want to rely on a third party or middleman, selling your house by yourself might be a good option.
That said, when it comes to home selling by owner, there are also quite a few cons to consider.
1. Local real estate agents know how to market to the right buyers, which can often get your home sold faster.
2. Agents have an established network that can help spread the word to buyers in other areas.
3. Websites that offer FSBO listings aren’t as enticing or user-friendly as Zillow or Realtor.com.
4. Real estate agents can set up an open house, run social media ads, and seek out buyers for you.
5. You’ll have to make sure your buyer’s qualified to get their loan.
6. Homebuyers looking for a good deal will expect to get a bargain on FSBO sales.
Considering the number of drawbacks selling your house by yourself can have, talking to a real estate attorney or agent might be wise before putting your home up for sale. They can give you some insight into the best way to list your home without losing time and money in the process. You may also want to look at some alternative ways to sell your house.
Instead of going through it all by yourself, you could avoid questions like what are the companies that buy houses in Jenkintown? or where are cash home buyers in Pennsylvania? A realtor would help with all that and more.
You might have to pay a fee for them to speak with you, but it could be worth it financially in the long run.
So, what are some instances where selling your home yourself might be a good idea?
1. You aren’t looking to make a profit.
2. You inherited a home you have no use for.
3. You’re moving and need to sell quickly.
Things You Need to Know About Selling a House By Yourself
So, now that you know the pros and cons of selling a house on your own, here are a few things you should know when you list your property.
No Commission Fees
One of the biggest draws for home sellers who choose to forgo a real estate agent is the lack of commission and fees. In fact, in Pennsylvania, you can expect to pay upwards of 6% of your sale price in commission.
However, remember that your commission and fees go toward all the leg work involved in marketing and selling a home. Agents network, create marketing campaigns, do a comparative market analysis of recent sales, and bring their expertise to all real estate transactions.
It’s Sometimes Harder to Sell
Unfortunately, there’s a bit of a stigma attached to any FSBO homes. Many buyers see that “For Sale By Owner” sign and automatically wonder what’s wrong with the home. So even if your house is in pristine condition, you might have to do some work to convince buyers it’s worth the price.
That being the case, selling your home without an agent can take much longer than selling with one. Not only will you need to figure out how to properly market your home, but you’ll also need to find a buyer who’ll pay what you want without assuming your home is damaged goods.
However, don’t be too hard on yourself. You never know when your FSBO sign will meet with someone that has in mind we buy houses in Philadelphia, for example.
Selling a House Might Be Seasonal
Believe it or not, the real estate market can be seasonal. In fact, the best time of year to sell a house is during the first half of the summer. That means home buyers are typically scouting out the market in the winter and spring so they can purchase and move in the summer.
You’ll also find fewer prospective buyers trying to move around the holidays. That means the months of November through January can be pretty slow for real estate sales. This is the time of year when people are busy with family gatherings and other holiday-related things that take up a lot of time.
Finally, if you’re selling a single-family home, you might not have many buyers on the hunt for a new home until the end of the school year. Most won’t want to uproot their kids mid-year, so they’ll be more likely to buy a home toward the end of the school year.
Selling a House By Yourself or to a Cash Home Buyer?
At some point, you might consider selling your home to a cash home buyer. These buyers skip the home loan lender and pay for the home with money from their own pockets. It’s a win for home sellers because the selling process is much quicker, and it’s a win for buyers because they won’t be saddled with a mortgage.
The main downside to selling a house by yourself to a cash home buyer is that you might take a hit on your asking price or have to accept a price that’s a bit below market value. However, if you want to unload your home quickly and aren’t looking to maximize your return, a cash buyer is a great option.
However, FSBO sellers should be aware that there are several types of cash home buyers, some of whom are almost always looking for a deal. So, as enticing as it might be to accept a cash offer to get the sale done quickly, make sure you do your homework before accepting an offer.
If you want to sell your home to a cash buyer, your best bet is to approach investors with proven track records of fair sales. This way, you can ensure you get a reasonable price for your home and have money in your bank quickly.
How Cash Home Buyers Work in Philadelphia
Choosing to work with a cash home buyer in Philadelphia can be a great option if you want to sell your home quickly. Finding the right buyer is key to getting a fair price, though. You want to find a buyer who’ll help make selling your home simple and fair.
When you reach out to a cash home buyer in Philadelphia, the first thing you’ll do is request an offer. Next, the potential buyer can review your home’s details and determine whether your offer is reasonable. Then, if they’re interested, they might accept or counter your offer.
Once the cash home buyer decides they’re interested, they’ll want to walk the property with you. This will give them a good idea of the state of your home. Make sure you prepare for their visit properly by taking some time to declutter and look at comps in your area to see how they’re staged.
Some services will allow you to send pictures in place of a walk-through. However, to make the best first impression, a walk-through is best. Or, at the very least, hire a professional photographer to capture your home’s best features, including curb appeal and interior design.
Once the buyer has taken in each aspect of your home, they’ll make an offer. Then, you’ll be able to set up a closing date. In many cases, you’ll be able to close and move within a couple of weeks. Then, you’ll be on your way with cash in your pocket.
Selling your home by yourself can be an appealing option if you want to skip the agent and get your house off your hands. But, of course, there are pros and cons to FSBO, so an alternate solution would be to sell to a cash home buyer. When you find the right one, you’ll be sure to get a fair price for your home quickly and easily.