For Sale by Owner or Agent?

[Alan J Mowder]

Hello BP,

I purchased a home in Temecula, CA a little over a year ago with the initial plan to live in the property for 4-5 years and ultimately sell. I purchased with a VA loan so my down payment was very minimal. Unfortunately, I was involved in an auto accident late last year which is forcing me to be medically seperated from the military and I will likely relocate to Texas near family. I spoke with my realtor and in order for me to break even, I would have to sell the home at the top end of its market value (thats with a discounted commision). So, naturally, im considering doing a FSBO. Have any of you done a FSBO and can you list the Pro's and Con's and any other advice you may have? Thanks!

[Allan Bishop Jr.]

@Alan J Mowder- sorry to hear about your accident and its impact on your career. I know that can be a challenging transition.

FSBOs - haven't done one myself but I used to be a licensed agent in Texas so I dealt with FSBOs on both the buyer and seller side.

Biggest issue with FSBOs is pricing your property correctly. Without access to the MLS finding that information can be tough. Zillow has some tools I believe (not the Zestimate). Another issue is advertising. Militarybyowner.com and Zillow are both goods sites to post on. Facebook groups in that area are another resource.

If you're not able to get a buyer before moving that creates another set of issues. Army medical separations take an average of 6-7 months so depending on where you are in the process time is of the essence.

If you do end up listing as a FSBO be willing to work with a buyer who has an agent. Perhaps the price of the property can be increased to cover the commission. That way you get the price you need and there is someone with experience making sure all the important benchmarks are being hit (inspections, surveys, etc.).

All that being said - would you cash flow if you rented the house out? Even if you decide to sell later renting the house out could cover your mortgage until you're in a better spot to sell. It also might be the start of your rental portfolio!

Feel free to contact me if you have any specific questions. Good luck to you!