Real Estate Agent/Broker

For Sale By Owner

REAL ESTATE AUCTION

Fees/ Commissions/Closing Costs

6-7% commission plus settlement costs

Owner pays no commissions but has to pay settlement costs

Buyer pays all fees & settlement costs

Advertising

Minimum and/or passive marketing strategies

Minimum and/or passive marketing strategies

Aggressive, direct & localized marketing strategies

Sale cycle

Potentially long sale cycle. 6-12 months

Unknown sale cycle

Predictable sale: 2 to 3 weeks

Contracts

Contingent 18-48 page contracts

Will depend on buyer

1 page agreement

Financing

Sale depends on buyer acquiring financing

Sale depends on buyer acquiring financing

All buyers are pre-qualified

Property Condition

- Buyers/insurance companies may require several repairs

- Inspection costs

- Buyers/insurance companies may require several repairs

- Inspection costs

- Sold AS-IS, no Contingencies

-No inspection

Showings

Unpredictable & disruptive

Unpredictable & disruptive

One time only: 30-60 minutes before sale

Price

- Owners get false hope with unrealistic prices

- Inspection costs

- Owners get false hope with unrealistic prices

- Inspection costs

- Price can only go up from reserve

- No inspection

Closing wait

Up to 6-12 months

Up to 6-12 months

4 to 5 weeks