Are you planning to list your home for sale using the FSBO method? Before you navigate the waters of a For Sale By Owner listing (or FSBO), you will need to understand how this approach may cost you a lot of valuable time and money.
If your property is located in New Orleans, we’ll go through what you need to know about using an FSBO listing to sell your house.
Commissions
It is understandable that sellers are wary of commission fees, especially as the percentages can amount to a hefty sum. Many homeowners decide to sell their home via FSBO to avoid paying commission fees, but often they realize too late that the process costs more than simply putting up money for said fees.
If you list your home without using a real estate agent, chances are the buyer will still be working with one. This means you’ll still have to pay out commission fees, which is something FSBO sellers in New Orleans should know before listing their homes for sale.
Costly
If you want to set the correct selling price for your home, you can consider hiring a professional appraiser. They will compare your FSBO property to similar homes nearby that have sold recently. This way, you increase the chance of having a quick sale as opposed to having your home linger on the market, plus you’ll gain an understanding of the area’s value.
In some instances, you may want to hire a real estate attorney to help you write your contracts. This ensures that you have the legal papers sorted out and any discrepancies can be avoided. Additionally, real estate advertising today often includes professional photography, virtual tours, and staging of the home – all of which can be costly endeavors. It’s crucial that you’re aware of these expenses before selling your house through an FSBO listing in New Orleans.
Repairs
If you’re selling your home via an FSBO listing, you may need to keep in mind that potential buyers will likely request a property inspection. If they identify any issues with the property’s structure, they may ask you to pay for repairs before moving forward with the sale. Depending on the amount of repairs, replacements, or renovations that need to be done, this can also be a costly endeavor, but an essential one that must be done before selling your property in New Orleans.Commitments
If you choose to sell your home as an FSBO listing, be aware that it may take up more of your time than using a marketer or listing service. You will likely need to be available on short notice for showings and ready within less than 24 hours. This can often mean odd times and booked weekends, as well as working around the schedules of your family members. If you are unable to make the time, you may risk forfeiting a sale.
Another time sink for an FSBO is the paperwork involved in selling a house, which takes careful scrutiny to fill out correctly. Usually, a real estate agent would be able to handle the administrative work on your behalf, but going FSBO often means going at it alone.
Lost Deals
If you’re selling your home using an FSBO listing in New Orleans, another disadvantage is that buyers can get prequalified for their loan, but then fail to qualify later on. This is a big waste of time as you’ve already gone through several steps in the real estate transaction process. This can happen because the buyer’s financial situation could have changed unexpectedly, such as a change in their credit score or debt ratio.
One solution to the FSBO conundrum is to work with preapproved or cash-only buyers exclusively. Keep in mind that when dealing with cash-only purchasers, you should not take offense; they are expecting to pay less for your house because of the benefits associated with signing a contract in cash.
Need to sell your New Orleans home fast?
When you sell your house without the help of a real estate agent, it can be time-consuming and costly. We understand that waiting around for buyers is frustrating, which is why we at Albatross Home Buyers close on homes within 14 days or less. That’s what happens when you work with an excellent cash home buyer familiar with the New Orleans, LA market.
Plus, when you work with us, there are no commissions or fees – you get to keep all of the profits from the sale. And because we purchase homes as-is, you don’t have to worry about making repairs before closing. Let us take care of everything! Shoot us a message today and we’ll get started right away.