If you are looking for an alternative to a traditional home sale, you may be considering a For Sale by Owner (FSBO). A For Sale by Owner gives you more control over your house and how you want to sell it. However, an FSBO also comes with a greater risk, more responsibilities, and, possibly, a higher financial commitment.
A viable alternative to an FSBO is a cash home sale. In a cash sale, you work directly with a buyer willing to pay cash for your house as-is. The financial commitment is much lower, and there are fewer sales steps. Below, we compare a cash home sale vs. For Sale by Owner to determine which may be the best option for you.
What Is a For Sale by Owner?
In an FSBO, the house owner sells the property without the help of a real estate agent or real estate broker. In other words, no moderator is brokering the transaction. The seller works directly with the buyer or the buyer’s real estate agent.
An FSBO sale is similar to a traditional home sale in that the seller lists the house on the market, prepares the house for a sale, and pays closing costs. The only difference is that they do not hire a real estate agent to find a buyer.
An FSBO typically involves the following steps:
- Make repairs or home improvements to the house.
- Schedule a home inspection.
- List the house on the market.
- Stage the house for showings.
- Find a qualified potential buyer.
- Negotiate the terms of the sale.
- Close the sale.
On average, a For Sale by Owner takes six to 12 months when you include the prep time, finding a buyer, and closing the sale.
What Is a Cash Home Sale?
A cash sale is a private real estate transaction between a home seller and a company that buys houses. The home buyer makes a cash offer and closes the sale. Since the transaction is private, no real estate agent or real estate broker is involved in the transaction.
A cash home sale typically involves the following steps:
- The buyer looks at the property to determine interest in the sale.
- The buyer makes a fast cash offer.
- The seller accepts the offer.
- The seller schedules a close date with the buyer.
- The seller and the buyer close the sale.
- The buyer pays the seller.
On average, a cash home sale takes seven to 21 days to complete. There is no prep time, no repairs, and no closing costs or realtor commissions.
Is a Cash Sale or an FSBO Better For You?
A cash sale and an FSBO are similar in that they both eliminate the real estate agent. So, you don’t pay realtor commissions. The biggest difference is that you still pay for repairs and closing costs in an FSBO. Plus, you do all the work that a real estate agent would normally do for you if you sell your house independently.
Which is better for you – a cash sale or an FSBO? The answer depends on the circumstances of your sale. If you are highly motivated, have plenty of resources, and are not concerned about when your sells, you may want to consider an FSBO. However, if you need to sell your house fast and don’t want to go the traditional route, a cash home sale may be your best option.
Look at the comparison below:
|Realtor||For Sale by Owner||Ernest Buys Homes|
|Commissions Fees||6 percent||Zero||Zero|
|Closing Costs||You pay up to 100%||You pay up to 100%||We Pay 100%|
|Average Selling Time||60 to 90 days||6 to 12 months||7 to 21 days|
A cash home sale also gives you more flexibility if you are in a situation where you need to sell your house fast and get out of your mortgage. You can still sell your house during bankruptcy, foreclosure, probate, or divorce.
Sell Your House for Cash to Ernest Buys Homes
Before you decide how to sell your house, explore the benefits of a cash home sale over a For Sale by Owner. Call Ernest Buys Homes at 865-292-2499 to get a fast cash offer.