FSBO is an acronym for “For Sale By Owner” and is one method of selling a home in Raleigh. Many homeowners choose this route because they want to save on agent commissions and fees. This can be a way to save money, but there are things you need to consider before taking the do-it-yourself route.
When it comes to FSBO listings for sale by owner, going it alone isn’t always the right move. The process of selling a home is much harder than it would appear. There is a high failure rate for FSBOs trying to sell their own home.
When you’re ready to select the method you’ll use to sell your home, which is likely one of your most significant financial assets, it’s essential to have realistic expectations. We will explore six things you should know about Raleigh FSBO property listings.
1. Hard Work & Hassle
As a local company that buys houses for cash, Wake County Home Buyers buys and sells dozens of properties per year. We never go the FSBO route and despite our experience, we always hire a Realtor to sell our homes for us. Why? The main issue is answering all the calls, emails, and inquiries that come in about the home. The other issue is scheduling all the showings. The Triangle MLS uses a centralized showing service (CSS) to schedule the showings. Even with this service, selling a home you are currently living in can be a nightmare. We choose to delegate this as it can easily become a full-time job. Then there is the scheduling of the technicians during the due diligence process. This includes appraisers, home inspectors, radon inspections, termite & pest inspections, etc. Yes, you will save money on commissions and fees but you will be working for it.
2. Due Diligence Request (Repairs)
Any traditional buyer in Raleigh, especially ones that are represented by an agent, will get a home inspection done on the property. I have yet to see a home inspector go into a house, even a new construction house, and not return a list of items for repair. Generally, the older the home the longer the list. We have seen reports as long as 50 pages. Repairs are not something you can escape with Raleigh FSBO property listings. While you may not be aware of disclosure laws, learning this lesson the hard way could land you in legal hot water. Even if you don’t make the repairs, the buyers are going to ask for concessions. Familiarize yourself with the North Carolina Due Diligence Request and Agreement.
3. Will You Pay a Buyers Agent?
You should decide upfront if you are willing to work with, and pay for, a buyer’s agent. Many buyers in Raleigh are already represented by a buyer’s agent. If you don’t want to pay for the one you should decide ahead of time if you will work with them or not. They will be calling you and asking you this question! If you decide not to work with an agent you will be cutting out a significant portion of the market. If you decide to work with one, you will be paying them a fee to negotiate against you. If you have bought and sold a home in the state of North Carolina you may be able to navigate the FSBO route effectively. It is best to decide upfront.
4. Legalities and Paperwork
I started buying houses in 2005 and I hate the paperwork associated with a real estate transaction. A qualified agent will be thoroughly familiar with all the forms and documents that are associated with a real estate transaction. If you go the FSBO route you need to read every word of the offer to purchase and contract that is submitted to you. Better yet, it would be a good idea to hire a closing attorney ahead of time and have the offers reviewed by them. This will cost extra money but it may save some headaches in the long run.
There are a host of online resources to help FSBOs sell their own home. Do your research and select the one that is best for you.
5. Holding Costs
You should also know about holding costs and how they can eat away at the profits of Raleigh FSBO property listings. Sadly, not having realistic expectations about what it takes in today’s market to sell a home could leave the property lingering on the market. You’ll be left with the mortgage payment, taxes, insurance, utilities, maintenance, and all other expenses to keep the property in saleable condition. Even an agent cannot tell you an exact closing date when listing a property on the Raleigh market.
6. North Carolina Residential Property Disclosure
According to North Carolina law, all homeowners need to fill out a North Carolina Residential Property Disclosure form when selling a house. Do yourself a favor and download the form and read it over a few times. Or you can go over it with your attorney. The most important thing is that you fill it out completely and disclose any and all defects in the property.
An Easier Softer Path
The most important thing you should know about Raleigh FSBO property listings is that there is an easier softer path. Selling directly to Wake County Home Buyers is the easiest way to sell a house as-is without paying any agent fees or commissions. Wake County Home Buyers pays cash so that you can skip the appraisers and wait for the buyer to get a loan. As an added benefit you can pick the closing date!