Buying Preparation

Make Sensible the Decision to Shop & Buy FSBO !

The motivation to buy a home directly from a homeowner can save you thousands of dollars.  Every agent-listed property has an inflated asking price to coverthe agent's commissions. Regardless of what they say, even the lowest negotiated price, contains a commission. Sometimes buyers think the seller pays the agent, and actually they do, but in fact, the buyer pays a higher price for the house.

The FSBO advantage is that they do not have to inflate their asking price to cover high commissions. Nine times out of ten, in every neighborhood across KC, the FSBO proeprty will be a much better buy for the buyer. More house for the money. Eliminate the middleman and everyone wins.

 Therefore it’s in the sellers best interest to sell FSBO because he/she can sell faster (because the home can be more competitively priced than those listed or sold by real estate agencies) and ultimately net more from the sale. 

Sound confusing?  It's really not.  Take the example of a $200,000 home.  Assume an agent commission for the sale is seven percent, or $14,000.  In this scenario, the seller will only net $186,000 from the sale. (If they get full asking price, which rarely happens).  If the seller sells on his own, then the price can be significantly lowered by several thousands of dollars, say to $195,000 and the seller benefits by $9,000 (the difference between the $195,000 sales price and the $186,000 net proceeds if listed with an agent). 

 The buyer benefits by $5,000 because the purchase price was $5,000 less.  It’s a win-win situation for both buyer and seller.  Both benefited financially and more than likely, the home was on the market for a shorter period of time.