Frequently Asked Questions
Click on a question to jump to the answer
- What does FSBO stand for?
- Why should I sell my home myself?
- What would an agent do for me?
- Why should I list my home with FSBO-VT?
- What should I expect from agents if I list my home For Sale By Owner?
- I'm currently using an agent, is it too late to go FSBO?
- What do I get when I list my home with FSBO-VT?
- Can I change my listing once it's been published?
What does FSBO stand for?
FSBO, pronounced fizz-bo, is an acronym for "For Sale By Owner."
Why should I sell my home via FSBO?
For Sale By Owner has a number of advantages over using an agent.
1. The cost is much less
Most real estate agents charge a commission of 6% of the sale price of your property. On a $250,000 home, that's $15,000! Eliminating the commission gives you the flexibility to:
- Sell faster by pricing under the market, or...
- Pocket more of your equity, or...
- A blend of the two
2. You're more likely to get the price you want
A University of Chicago study of nearly 100,000 home sales in the Chicago area showed that on average, real estate agents selling their own homes, kept them on the market 10 days longer and sold for over 3% more than non-real estate agents represented by a seller's agent. This indicates that the way agents are compensated does not motivate them to act in your best interest.
For Sale By Owner gives you control every aspect of the process, and you can chose to hold out for a better price when an agent might not.
3. You know your home best
Because it's your home, you are best able to describe it in your listing, you can best answer questions when showing it to potential buyers, you can take better pictures and choose which ones you want to use...
Remember that FSBO-VT gives you the ability to present more detailed information to potential buyers than any other for sale by owner venue or MLS service.
4. It gives you more control
You decide when you would like to show your home. You schedule open houses when it's convenient for you. When you're selling your own home, you have full control over the whole process. Most sellers agree that the convenience that this control affords them far outweighs the additional effort.
5. It's a lot easier than most people realize
Selling your home yourself is easier than you can imagine.
What would an agent do for me?
Real estate agents have four main functions:
1. Setting the price of your home
Most agents are familiar with the current state of the market and can give you guidance in setting a price for your home. However, you can do as well or better by investing a few hours in research. Good resources are listings for similar homes in similar neighborhoods and records of recent sales (often published in local newspapers and available at your town hall).
It's important to remember that unlike a real estate appraiser, real estate agents have no legal responsibility to accurately valueate your home. An agent's Competitive Market Analysis (CMA) is really nothing more than an experential opinion of the value of your home that is not necessarily more accurate than what you could ascertain yourself. Most agents use a request for a CMA as nothing more than a marketing tool and an opportunity to jamb their foot in your door. So beware if you ask an agent for one.
2. Finding potential buyers
Since the advent of the internet, this function of an agent has been largely obsoleted by online listing services. Most home buyers now use the internet in their search for a home.
3. Showing the house
A real estate agent can relieve you of the duty of conducting tours of your home for total strangers, but showing your home yourself has distinct advantages over having an agent do so.
4. Handling the negotiations and contracts
The negotiations and paperwork can be the most difficult part of the process for a homeowner, but in reality, it's not as complicated as you might think. Many sellers chose to use a real estate lawyer to help whether using an agent or not. Your lawyer can provide you the same support that an agent would have.
Why should I list my home with FSBO-VT?
A listing on FSBO-VT is one of the most cost-effective ways to advertise your home to potential buyers. Here are some reasons why FSBO-VT provides you superior value and performance:
1. It's less expensive than all other mainstream venues, heck, it's free!.
For comparison, here are some prices of a few alternatives: (prices as of 4/27/2006)
|
Real estate agent 6% commission on a $250,000 home |
$15,000 |
|
Picket Fence Preview 1/8 page, 2-months, 1 photo and 40-word description, with optional yard sign and internet ad |
$475 |
|
ForSaleByOwner.com 2-months, 6 photos, 1000 word description, sign not included |
$180 |
|
FSBO-VT unlimited duration, unlimited photos, and 1500 character description |
$0 |
2. FSBO-VT allows you to describe your home in greater detail
When creating your ad, we guide you through a series of questions that helps you describe your home in detail. You can also enter a text description of your home up to 1500 characters in length to shed light on your home's unique aspects.
3. Pictures pictures pictures...
We've all heard the familiar proverb, "A picture is worth a thousand words." FSBO-VT allows you to include as many pictures of your home as you want in your listing.
4. We're local homeowners!
FSBO-VT is a Vermont company and it's run by Vermont homeowners who know what Vermonters want when buying or selling a home.
What should I expect from agents if I list my home For Sale By Owner?
1. Calls from seller's agents.
Unfortunately, you can almost undoubtedly expect phone calls from real estate agents who will attempt to discourage you. "Give me a call when you give up!" They might say. Before you make your decision to go FSBO, you must resolve to be strong and resist the siren's song. Patience will pay off in the long run.
2. Calls from buyer's agents.
You also need to decide whether or not to do business with buyers who are represented by a real estate agent, and if so, what arrangements you are willing to accommodate. A buyer's agent will typically demand a 3% commission. If you are not willing to pay that, make it clear up front. Depending on the contract between the buyer and their broker, the commission can be paid by the seller, the buyer, or anywhere in between. Ultimately, it's up to you as the seller. After all, you're in control.
I'm currently using an agent, is it too late to go FSBO?
NO! It's never too late. However if you are currently listed with an agent, then chances are you have a contract with them that you need to consider. You should have a copy of it; read it carefully.
Most agent contracts contain a clause that will allow either party to terminate the contract simply by delivering a written notice to the other party. However some may not be able to be terminated before a set date. Be aware that many contracts require the payment of a commission to the agent if the property sells within a certain number of days of the termination of the contract.
If you think you can do a better job than your real estate agent, you're probably right!
Can I change my listing once it's been published?
Yes! You have the ability to change or add to your listing at any time and as often as you like, before or after it's published. This includes changing any of the data, and adding or removing pictures. (Our competition charges $5 to make a change to an internet ad)
Mortgage Calculator | FSBO Real Estate Forms | FSBO Reading | Vermont Municipal Websites | Recently Sold Properties