For Sale By Owner Won't Save You Money

Placing your house for sale by owner may sound like a great idea if all you are thinking about is not having to pay a commission, but most FSBOs do not consider what costs they are incurring and what important services they are forgoing. Here are some of the biggest problems with attempting a sale on your own.

1. Prospective buyers know that you are saving yourself the commission, so they automatically deduct the commission from their offer. While you may be looking for a bargain by selling on your own, the buyers expect that savings to be on their end of the deal.

2. You will have substantial out-of-pocket costs that you would not pay if you were using a Realtor, including marketing, advertising and legal fees.

Cost of Fannie Mae Loans Rising

Buyers with Fannie Mae-backed loans will face higher borrowing costs and interest rates, even if they have a perfect credit score, starting on April 1. Fannie Mae is instituting a loan-level price adjustment on several mortgages, which is a fancy way of saying they are going to charge borrowers more fees. The fees will include higher interest rates based on the down payment amount (or the amount of equity in their home if they’re refinancing) as well as the borrower's credit score.