In a sellers’ market, there are always those homeowners who will be tempted to try to sell their homes on their own (For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is as low as it is today, buyers are eager to quickly offer up on virtually any house that comes to market. This makes it even more tempting to FSBO. As a result, some sellers think selling their house will be a breeze and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more in the long run.
According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent.
The NAR report explains:
“FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000…Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”
When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):That’s a lot of money to leave on the table when you go FSBO – far more than what you’d save on commission or other fees. Despite the advantages sellers have in today’s market, it’s still critical to have the experience of an expert to guide you through the process. Real estate professionals are trained negotiators with a wealth of housing market insights that average homeowners may never have. An agent’s expertise can take much of the stress out of selling your home and help insure that you close the best possible deal.
It’s Your Bottom Line:
If you’re ready to sell your house this year and you’re considering doing so on your own, be sure to think through that decision carefully. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. And when you have thirty offers which addenda will you use for that? How will you negotiate for the best terms and price? And how will you sort them for the most solid offer; the one that will get you all the way to closing? Let’s connect to discuss how a trusted advisor can help you, especially in today’s market.