Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
More often than not, people who wish to sell a property would approach real estate businesses or brokers to look for buyers more efficiently and without any hassle. Real estate agents and brokers act as the middle man in such transactions whereas they undertake the responsibility of looking for potential buyers and connecting them with potential sellers. Here, it is the broker duty to consider all the requirements of the buying party and the demands of the selling party. Next, by cross reference, they can set up an appropriate deal between the two while earning a commission for themselves.
Some real estate owners wish to dodge this liability of paying commission to a third party. This is where the concept of “for sale by owner” (FSBO) comes into the picture. Here, the owner of the property puts it up for sale by himself without opting for such third-party services. In most cases, the commission earned by real estate agents ranges between 5%-6% of the total value of the property. By approaching the for sale by owner (FSBO) route, the seller curbs the added expense of paying such a commission.
In such transactions, all the responsibilities and liabilities are undertaken by the seller himself. The entire accountability of completing such a sale lies on the seller alone. However, it should be noted that this approach does not absolve the sale of all incurring expenses. This is because there still exists the liability of paying commission to the buyer’s real estate agents. This cost comparatively lower ranging between 2%-3% of the total value of the property in question.
As per the National Association of Realtors, it has been ascertained that the “for sale by owner” transactions make up about 7% of total home sales in a year.
With such transactions, sale deeds can be drawn up in numerous ways. Fillable PDF contracts are easily available on the internet to serve this purpose. One can choose to approach companies that undertake the drafting of such documents. It is also possible to approach a real estate attorney to draw up the necessary documents to constitute a sale agreement in an FSBO transaction.
