I break down why FSBO may not be the best idea for your situation.

As many of you know, the current real estate market is hot for sellers. Right now there is actually more buyer demand than there are homes for sale. This means that some homeowners are considering selling their homes without an agent, simply known as ‘for sale by owner’ (or FSBO). Today I’m going to tell you why that may not be the best idea for your situation.

I’ve spoken with some potential home sellers recently who think that it may be a good idea to sell on their own instead of working with a professional real estate agent to represent them. When inventory is as low as it is in today's market, buyers are eager to snatch up virtually any home that comes up for sale. This can make the FSBO option tempting. Sellers can think that it's easier to sell on their own and save some money, but this can actually be a big mistake and cost you more money in the end. Here are two reasons why:

1. Working with a professional real estate agent can actually get you a higher sales price. According to a recently published survey by the National Association of Realtors, 41% of homeowners who tried to sell their house FSBO did so because they wanted to avoid paying commission. In reality, even in a seller's market, selling on your own can mean you'll net a lower profit than when you sell with the help of an agent. 

”Sellers can think that it's easier to sell on their own and save some money, but this can actually be a big mistake.”

The main reason for that is because FSBO homes typically sell for less than other homes sold with the help of an agent. In 2020, the median sales price for FSBO homes in the United States was $217,900. For FSBO sellers who knew the buyer, the sales price was even lower, dropping to $176,700. The median sales price of all homes where an agent assisted was $295,000. That's a lot of money to leave on the table when you sell on your own. It’s far more than you would pay in commissions and fees by working with an agent.

2. A knowledgeable real estate agent can negotiate better terms for you. This can save you money. The home selling process is not all about sales price. Other factors need to be considered when discussing the sale of your home. Some of those include inspections, appraisals, and possession agreements. Working with a knowledgeable and trusted real estate professional means that you get a top negotiator on your side who can work out terms that are the most favorable for your situation. You don't want to lose money or have to pay more for repairs, rent back, or other terms because you're unfamiliar with this process. The bottom line is that working with an experienced real estate agent can put more money in your pocket versus selling on your own.

If you're thinking of selling or buying a home, contact us today to learn how we can put our expertise to work for you.