Some people consider that they can sell a house in no time just by listing their home with a real estate officer. The idea is pretty good if you have a lot of other things to do except selling a house.
But first of all, think about the agent’s reward. In most states, if your property is worth USD400,000, you’ll have to pay about $24,000 to the agent for his services. You could save this amount for yourself.
But selling your house is no longer an easy task.
The number of houses listed on the market by real estate agents is all-time high. E.g. in New Jersey about 32,000 houses were on the market at the end of spring. The number of properties sold in September 2009 in general is also dropped significantly from 3,500 in 2008 to 1,700 in 2009 for the same period (September).
The recent numbers show that selling property by real estate agents is not going to bring instant effect any more. Foreclosures have appeared throughout the country and now every state has a long list of foreclosed houses.
If you sell your home by owner, you have more odds to sell it out faster. In most markets for sale by owner properties are sold two times faster than those listed for sale by real estate agents.
If you are in need to sell your house quicker or you want to manage your mortgage payments properly, your agent is not going to pay your dues and he will not buy your property if it isn’t selling.
There are some useful tips for those who want to get out of the burden of your for sale by owner home (it is impossible to do them while selling with your agent):
- Lease out your house to a tenant and sell the home at the end of the lease period.
- Try to sell your property via owner financing (e.g., through an agreement for deed or a land contract).
- Pay the buyer the real estate commission in order to assist him in qualifying.
- Purchase down the interest rate.
Those ideas can help you to get out quick. At modern unstable times it is better to look for some ways of paying off the mortgage payments (little by little) than to allow your home to stay on the market for ages and to take off all your savings.
These tips are not for the wealthy investors with huge amount of money and lots of options in case their house isn’t sold. This information may be useful for those who need some relief from their mortgage payoffs, double payoffs, job changing or divorce. Maybe it appears to be better to sell house by owner and have complete control on the process.
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Tags: FSBO