Are you thinking about selling your home by yourself without the help of an agent? I’m not going to be the one to tell you, that listing your home “For Sale by Owner (FSBO)” is a bad idea. That’s for you to decide! But I will help by shedding some light.
The main reason people decide to sell FSBO is to save 6% in Agent commission. But are you willing to put in the work? Real Estate Agents do so much behind the scenes to make sure things go smoothly. & don’t just take my word for it… read about all the work put in by other FSBO experiences – – HERE!
As mentioned in the forum above… I strongly agree that getting an offer is only half the battle. Getting the deal to closing is just as hard, if not more challenging. I have seen plenty of deals fall through well after they’ve gone pending.
3 out of the 4 homes I’ve purchased for myself came to be, after they fell apart during the closing process! …So I speak from experience.
If FSBO is the route you want to take, then you totally should! Just be prepared to put in the time & work.
Here are some tips to keep in mind:
- Price right! (I wrote about using online home estimates – – HERE!)
- Prepare your home by decluttering & staging. You want to allow buyers to dream when viewing your home. (This will also set you up for #3)
- Photography – having great photos are EXTREMELY important!! It’s ultimately the 1st impression any buyer will have of your home.
- Hold tons of open houses with plenty of signage to direct as many buyers to your home.
Now, let’s think about the type of buyers selling FSBO may attract.
“Why do people shop for off-market homes?”
>> They want a great deal!! <<
So be prepared to receive some pretty low offers.
I had a client who received offers $85k below what we ultimately sold for on-market.
Also, my grandma ended up selling her rental property on-market for $125k more than the highest off-market offer.
If you paid an Agent 6% commission on the above scenarios:
$85k would equate to 6% on a $1.4M sales price
$125k would equate to 6% on a $2.1M sales price
- The sales price on both of these homes weren’t even a 1/4 of the sales prices listed above.
- Listing their homes on-market ultimately covered the Agent’s commission & SOME!
So, if you’ve ever heard that listing with an Agent isn’t worth the 6%… These numbers prove that statement wrong. I strongly believe that listing your home with an Agent can potentially get you more than selling off-market. With way less work, time & stress for you!!
If you decide to work with an Agent… just keep in mind, that who you hire, really matters! Sadly, not all Agents are equal.
Your best bet is to work with an Agent who is a “Realtor.”
Realtors are members of The National Association of Realtors (NAR):
Every NAR Realtor is required to abide by the Code of Ethics
(see them – –HERE!)
Myself & every Realtor at my office are proud members of NAR!
I really hope this blog helps you. As always, I’m here to be a resource & answer any questions you may have.