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Real Estate for Sale

Thinking of Selling Your Own Home?

by: Boris Michailov

What is For Sale By Owner Real Estate?

For Sale By Owner (FSBO) is a term that is used to refer to real estate, usually residential homes, which are being sold by the owner without the help of a real estate agent or broker. The allure of the “For Sale By Owner” method is the opportunity for the home seller to save money by not having to pay a commission to a real estate agent upon the sale of their property. The home seller takes on the role of the real estate agent for their property and essentially "earns" the commission for the sale.

The earnings from an FSBO real estate sale can either be kept by the home seller as increased profit or passed on to the real estate buyer by offering the home for sale at a lower price. While the financial gains from an FSBO transaction can amount to quite a tidy sum, if you are interested in selling your own home privately be prepared to work for this money. Real estate agents are licensed professionals who do offer a valuable service. For some home owners the security of a professional handling their transaction may be preferable to trying to handle it on their own.

Is it hard to sell my own home?

The FSBO method of selling a home definitely requires work and promotion on the home sellers part to be successful. The FSBO method is not meant to replace traditional real estate agents but to serve as an attractive option to an entrepreneurial person that can save them money. There is work involved spreading the word out about a property and if you simply do not have the time to do it then an investment in a real estate agent may be worthwhile .

Advantages of the For Sale By Owner Method

· No real estate agent or broker commissions to pay. Agent commissions can be up to 6% of the total sale price of a home in Canada.
· Knowledgeable, motivated salesperson.
· Flexible open house scheduling.
· Ability to offer your home or property at a lower selling price for faster sale since there are no broker fees to factor in to your selling price
· Ability to showcase your home or property using relatively inexpensive advertising methods such as "For Sale By Owner Websites", FSBO yard signs and local classified advertising.

Disadvantages of the For Sale By Owner Method

· Real Estate agents are licensed professionals with experience selling homes. If you are intimidated by the complexities involved in real estate transactions an agent may be preferable to the For Sale By Owner method.
· People with busy schedules may find it difficult to arrange showings of their home.
· Difficulty finding effective channels to promote the property for sale. Some FSBO websites or newspapers will generate more leads than others.

The Internet and FSBO

World internet users will top 1 billion in 2005.

Fast Facts About Canadian Internet Useage:

· As of October, 2004 internet users in Canada totaled over 22 million.
· Steve Bartkey, President of AOL Canada, stated that twice as many Canadians use internet banking than their American counterparts.
· John McCallum, Minister of National Revenue in Canada, states that over 11 million Canadians filed their taxes online in 2004.

Considering that the total population of Canada is only 32 million people it is easy to see from the statistics that Canada is "hot-wired" to the internet.

According to the National Real Estate Board only 28% of home buyers used the internet to start their search for real estate in the year 2000. That number has skyrocketed in recent memory from 45% in 2003 to over 78% in 2005.

Knowing these statistics it should be clear that having an internet listing for your home is essential to help connect you with the majority of Canadian real estate buyers who are starting their search for a new home online. For the property owner who is interested in selling privately the latest promotional vehicle available on the internet are "FSBO" websites, which specialize in advertising For Sale By Owner real estate.

Generally, these websites bundle all of the tools and resources you will need to sell your own home along with a comprehensive online property listing for a flat fee.

These sites do not collect a commission on the sale of your home unlike traditional MLS listing services.


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