When you list a property in Memphis on your own, without the help of an agent, it is referred to as “For Sale By Owner,” or FSBO listing. FSBO listings are mainly meant to cut out the middleman, the agent, and avoid paying real estate commissions. Homeowners believe that by eliminating the real estate agent, they will benefit by keeping a greater profit percentage from their homes sale. However, this isn’t necessarily how things always turn out. To better understand the task at hand, let’s look at the pros and cons of selling for sale by owner in Memphis.
Pros And Cons To Sell Fast
Pro: Lower Commission Fees
One of the most common and appealing reasons people sell by owner in Memphis is potential cost savings. When selling a house in Memphis with an agent, you can usually expect to pay 5-6% in commissions– typically 3% to your listing agent and 3% to the buyer’s agent. But, if you were to sell for sale by owner, you will only be responsible for the buyer’s agent commission.
This can reduce what you owe in commissions come closing time, making this a pro in our pros and cons of selling for sale by owner list.
Con: No Pricing Strategy
Pricing your home is never easy, but pricing without an agent is a different story–which is why it’s hardly a surprise that pricing continually tops the list of FSBO challenges. Usually, this is due to the lack of public access to market data and homeowners having no exact way of knowing which homes are for sale or not. And since closing prices are not required to be publicly disclosed, there is no precise way to compare one home value to another.
Although you could use real estate estimators online, the data tends to make incorrect comparisons, leading to a wide variety of price quotes–so you may not know which one to trust. For these reasons, it is wise to hire a licensed real estate appraiser who can evaluate your home and compare sold homes similar to yours in your neighborhood, their estimate will be unbiased and spot on. Because setting an accurate asking price can be tricky, we put this con at the top of our for sale by owner pros and cons list.
Pro: More Control Over the Sale
When you sell for sale by owner in Memphis, the buck stops at you -which at times can be both a blessing and a curse. This means you will have the final say on your home’s listing price, what renovations to make, when to host open houses, and, ultimately, who you sell to. If you like the idea of being hands-on, selling by owner may be the right choice for you. But keep in mind this also means you are the one handling every aspect of the transaction, whether you’re prepared or qualified to or not.
→ Dealing with a unique situation like a hoarder house, major repairs, fire damage, leaky roof, or any other challenges? Just sell as-is to Fair Cash Deal.
Con: A Biased Opinion
Whether using an agent or selling by owner, it is essential to make sure your home is listing already. First impressions are everything, and you want prospective buyers to see your home at its best. You may love your interior decor, but someone else may not. An unbiased opinion can provide countless suggestions and quick improvements to make your home as marketable as possible. Just know making some minor home improvements can be like opening a can of worms, you may discover other repairs to complete, which may end up being costly to you.
Pro: Insider Knowledge
You do know your home better than anyone else. You have first-hand knowledge of what it’s like to be a homeowner in your neighborhood and a part of the community you live in. And you can share this insider info with potential buyers who are eager to find out what it would be like to live in your house.
Con: Difficult Access to Marketing Channels
You know your target audience consists of buyers who are not only trying to purchase a house in your neighborhood but are also willing and qualified to do so. What’s not as simple is reaching these individuals. Sure, you can post on Craigslist or Facebook and throw up a for sale sign, but research shows that this isn’t actually how buyers find new homes. Every day potential buyers turn to the internet to take the first step in looking for a house to purchase in Memphis. But surprisingly, FSBO sellers typically don’t do any marketing at all online. The best strategy to sell quickly is to get as many eyes or your listing as possible, and the easiest way to do that is by listing online.
Tip: If you’re dealing with a timeline and need to sell your house quickly, maybe due to foreclosure or bankruptcy- develop a targeted marketing strategy and get your listing on as many sites and social media as possible.
Pro: Full Dedication to Selling Your Home
When you’re the sole person responsible for selling your house, you can stay 100% focused on the task of getting it sold. Unfortunately, most real estate agents will be working with multiple clients and juggling their needs simultaneously–especially during busy seasons. As an FSBO seller, you don’t need to worry about your property sale getting the attention and time it deserves.
Con: Lack of Real Estate Knowledge
Legal terms, abbreviations, and other types of jargon can be overwhelming, especially for inexperienced sellers. Things can get shaky if you aren’t confident with every detail you sign off on, and we don’t recommend risking it. If you go at it alone, you can only rely on what you know and the resources you can access. While there are loads of free resources out there, no two transactions are ever the same. Furthermore, knowing the right course of action to take can prove to be tricky and stressful- especially if you’re dealing with a lien, divorce, title issues, or inherited property.
Con: Selling FSBO is a Major Time Commitment
To conclude our list of pros and cons of selling for sale by owner, selling a home is a BIG time commitment. From improvements and repairs to inspections and approvals, the to-do lists can feel endless, and selling your home entirely on your own can feel like a full-time job.
Sell To A Cash Home Buyer Instead
Don’t have time? You’re not alone. That’s where we come in! We are Fair Cash Deal, a local Memphis homebuyer that not only helps you save time and money but also enables you to tackle each of the for sale by owner pros and cons listed above.
How do we do that, you may ask? We buy houses in the Memphis area as-is, which means repairs are not required. Also, we pay in cash and can close in a timeframe that’s best for you. So, not only can you avoid hiring an agent or selling by owner and listing your house but also dealing with months of uncertainty. And we don’t charge commissions, fees, or closing costs.
Once you submit your information to us, we contact you to get a few more details and set up a time to view the property or ask you to send us some pictures of your home. After we look at everything, we send over a no-obligation cash offer, it’s that easy! If you’d like to learn more about our company or how it works, please visit our website or reach out to our team. Don’t worry anymore about the pros and cons of selling for sale by owner when you can easily sell to Fair Cash Deal.