Once and awhile during a sell my own house experience, I think we all need a little motivation. Is it all worth it selling for sale by owner?
Let's look at the two outcomes of selling for sale by owner and selling through a broker. We will assume the broker will charge you 5% commission and it took you 75 days for a successful sale in both cases.
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We will then look at how to cover ALL of your expenses that you used while trying to sell by owner, should you later decide to list with a real estate agent. Now that sounds like a great FSBO tip, right? :)
I'm going to use a tax rate on services at 6%. This will, of course, vary depending on where you live.
We will just deal with the costs to sell my own house, as everything else such as legal fees, moving etc. should be basically the same.
You may pay a small bit more for legal services in some cases.
The Real Estate Agent Sale
Commission: 5% of $325,000.00 = $16,250.00 + 6% taxes = $17,225.00
Internet ads, signage package = $350.00 + 6% taxes = $371.00
Local newspaper ads over duration of sale = $1100.00 + 6% taxes = $1166.00
Flyers, forms, gas and other misc. Items = $200.00 + 6% taxes = $212.00
Total costs of marketing in 75 days = $1650.00 + 6% taxes = $1,749.00
In this example you would save $17,225.00 - $1,749.00 = $15,476.00!
This is actual money in your pocket. Think of how you would feel if tomorrow you received a cheque in the mail for fifteen thousand, four hundred and seventy-six dollars with no strings attached.
That money is not the complete picture either. You now can take that money when you sell my own house and invest it to compound it further.
If you purchase another property and use this money to put more money down on your next property, it will save you thousands more, or lower your mortgage payments.
You may just want to use the savings for a dream vacation, or to renovate your next home. You may want to purchase a hot tub as your reward. It's your money. You decide!
But Doug, What Happens if My Property Doesn't Sell?
First of all, if you follow the entire program, that shouldn't be a problem. If you want to review the whole FREE program go to the Home Page
Keep in mind that this program had the same success rate as the real estate agents had when I ran my for sale by owner company. 95%!
I honestly believe that number would have been 100% except there were a few customers I had, about 5%, that just doubted themselves. It hurt me that they switched over to an agent, but that was their choice.
If you become a Doubting Thomas and decide to list with a broker, here is what I suggest you do.
If you are also listed on the for sale by owner website that I recommend for those in the United States, they have a program that if you decide to list with a Realtor® they will return your money you spent with them. Of course there is a bit more to this, but to check out this great company just head on over to For Sale by Owner Websites.
It Costs You Nothing, But Some of Your Time
Using the above plan, you can try to "sell my own house" and even if you decide to list later with a real estate agent, it would have cost you nothing money wise. Your only costs would be a bit of your own time.
I will repeat myself again. It should be totally unnecessary to switch to a broker. I only cover this plan because I know a certain percentage of you will regardless.
This way, you won't be moaning the blues about the money you spent and still had to pay a real estate broker.
I hope this page (sell my own house) helps some of you, that need a little push to keep on keeping on. :)
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