Advantages and Disadvantages of FSBO

FSBO also known as For Sale By Owner has definite advantages in certain situations. What made it popular to home owners is the cost they save on realtors’ or brokers’ fees. At most, home owners save up to 6% of the asking price when they opt for FSBO. At times, this amount can be tempting enough to forego the realtor’s services. But before you make a decision, let’s take a look at the advantages and disadvantages of going the FSBO route.

Marketing

Realtors have marketing leverage. They can list your home in MLS plus they have contact with other agents through their network which gives you the advantage because you are sure to reach wider prospects. On the other hand, since realtors handle multiple clients at once, you cannot expect them to devote their time on your property alone. It is true that realtors can list your home in MLS but it will only become as one of their many listings.

Property Showing

When you hire a realtor, he will take care of showing your property to prospective buyers. He will help you prepare or stage your house before the showings. He will answer questions from buyers, set up open houses and handle financing and closing issues. With FSBO, you will be doing all these work by yourself.

Money

With FSBO, you can save up to 6% of the asking price. Let’s examine this further by taking a look at these situations:

• You will be paying your own advertising – online listing, local papers, making of signage, flyers, posters, and print ads.
•  You will be paying for an attorney who will be handling the legal issues and drawing up of contracts.
•   If you don’t know how, you will be paying for a consultant who will do the comparative analysis of your home.

Do you think you can still make the most money after examining these costs? Do not forget that when you choose FSBO, you will also invest time and effort in the selling process.

Are you still decided to go with FSBO? You can skip the marketing and property showing and still save on the realtor’s fee by selling your house to private cash investors.

Sell your house for cash to Lucas Properties LLC. Unlike realtors, they do not ask for commission. They take away the strain by taking care of the closing documents making every transaction hassle free.

Get Good Value for Your Home in a Community with Distressed Properties

Occupants, oftentimes, are the first to feel the negative impact of foreclosed home as they will suffer the anxiety of financial distress and possible eviction. The secondary effect is the toll that this process takes on the neighborhood. As one of the home owners within the community with foreclosed property, you will realize that you are also greatly affected when you are told that your home is overpriced because of the distressed home sale. Distressed property can lead to lower property values and local tax revenues. It is said that a neighbor’s foreclosure can lower your home’s fair market value by up to 1%.

A distressed home is easily recognized as one with neglected doors, plywood over windows, untended yards, and possibly inhabited by drifters, or worse, drug dealers. One of the disadvantages of buying a foreclosed home is the fact that it is sold “as is” and buyers have no guarantee over its condition. Occupants who are losing the property will only think of salvaging their situation by selling the built-in appliances and ripping out metal plumbing for scrap. The “as is” condition is possibly the major reason of the drop in value because of the prospective buyers’ perception of the property followed by refusing to live in such neighborhood as a result of the previous occupants’ neglect of the property.

Distressed property affects the appraisal or market values throughout the neighborhood. If there is a recent distressed sale within the span of six months, this distressed sale becomes the new comparable sale and starts affecting the local homes in the market. This situation forces other home owners to lower down their prices and in no time, a domino effect of declining prices will take place. If you want to sell your home and get the highest possible value, you will need an appraiser to do a full appraisal. This means that the appraiser will inspect the entire property including the interior and will give credit for the condition of your home with the improvements you have made. Do not accept an appraisal which is solely based on public records. Another option is to sell your home to a private investor, like Lucas Properties LLC. Lucas Properties gives a fair cash offer of up to 25% of market value for your property. Since they are not realtors, there are no fees and commissions to pay. It’s a hassle-free way to earn cash for your property.