​For Sale By Owner

“For Sale By Owner”, commonly referred to as “FSBO” or “Fiz-bo”, entails a homeowner selling their home without the use of a real estate agent. This is a great alternative for homeowners who want to keep for themselves the commission a real estate agent would make when selling their home for them. 

Homeowners essentially remove the middle man (real estate agent) and sell their homes themselves. All it takes is the homeowner taking on the initiative of performing the legwork or tasks a real estate agent usually completes on their behalf.

Through this option, homeowners will be responsible for the researching, marketing, showing, negotiating and other components of the home-selling process. A homeowner also should be available to show their home and be fine with promoting their property.

Simple ads in local newspapers is a cost-effective way to promote a home since most home-buyers purchase properties within their communities. Also, homeowners using the for-sale-by-owner option can pay to be part of a listing service.

Many listing service packages can include a yard-sign kit and other promotional materials to help homeowners sell their properties. 

Homeowners have been known to save and pocket up to 6% commission of their property’s asking price via the fizbo option. For example, if a home’s asking price is $400,000 in Riverside County, the homeowner could potentially make an extra $24,000 by selling the home themselves.
After a homeowner settles on what they feel is a fair market price, they can simply list their home for that total. Yet if they wish to present their property at a bargain and speed up the selling process, they list it at a reduced price.

Also, sans the use of an agent, a homeowner could lower their asking price by up to 6% to rival listings in its area to assist the speed of the selling process.

Realtors still can be of help for those using the for-sell-by-owner option. Most realtors will not have any issues coming to a property and conducting a market analysis, and it’s usually a free service. This allows the realtor to get a look at a property and they’ll be monitoring its sale, as they’ll surely be available to formally help a homeowner sell the property if the fizbo option doesn’t work out. 

It’s advised for homeowners to require prospective home-buyers to provide a pre-approved mortgage letter with their written offers.

While this option has much appeal, there are some drawbacks, with the added time commitment it takes to sell a home being the most obvious. While realtors have the ability to only present homes to serious potential buyers through various screening methods, homeowners selling their property on their own may have some of their time wasted by showing their home.

Homeowners also will need to maintain all paperwork on their own, successfully draft legal binding contracts that bide by all community disclosure laws. Also, lender knowledge will need to be possessed.

Although a title company to assist in the finalizing of the sale and an attorney to construct a sales contract will still be needed (and certainly recommended), homeowners with a special property feature and highly desirable home could find this option beneficial.

Plus, should the homeowner see the for-sale-by-owner option not produce their desired results, they can sign a contract with an agent at any time. 

Homeowners in Los Angeles County, Riverside County and San Bernandino County who are interested in more information can call Golden Empire Mortgage at (909) 457-0257!