Thinking about selling your home FSBO – For Sale By Owner? It can seem tempting – not paying Realtor fees – especially if you’re the type of person that likes to do things yourself. But like anything else, for every benefit, there is a cost. And when it comes to trying to FSBO your home, the cost can get tremendous.
Bias Alert – YES, we are Realtors, so of course we want you to let us help you sell your home. But this blog is to INFORM YOU about the nightmare that doing FSBO can be, not to get us more business. What you’ll learn here is based on our YEARS of swooping in to rescue FSBO-ers who had come to their wits end. We get lots of clients who start out trying to sell their own homes, so we see what a mess it can be … because we have to pick up the pieces. Friends don’t let friends FSBO!
Here are 5 Reasons using a Realtor is better than FSBO
- FSBOs spend more time on the market – Homes sold by owner typically spend more than two months longer on the market than homes sold by a Realtor. In those extra months, the seller is still paying payments, utilities, insurance, the website that hosts their MLS listing, and more. When you sell your home with a Realtor from The Packer Group, you’re more likely to sell faster and save those months of expenses.
- Realtor-sold homes sell for more – According to the 2016 National Association of Realtors Profile of Home Buyers and Sellers, the typical FSBO home sells for $185,000, compared to $240,000 for agent-assisted sales.
- FSBO paperwork is a nightmare – Do not underestimate the amount of paperwork you’ll have to deal with if you’re lucky enough to get a buyer for your FSBO home. Inspections, contracts, negotiations, easements, etc. … the list goes on and on. When you sell with a Realtor, your Realtor – who has dealt with all this paperwork lots of times before, handles everything. And when it comes to paperwork, there is a LOT to handle.
- Realtors protect you – There are lots of things that can go wrong in a home sale. Buyers might not actually have the funding they promised. They might try to pull out at the last minute. They may filibuster your deal, demanding repairs that aren’t necessary or even legal. While yes, you can hire a lawyer to come to your aid should any of these things happen, that’s both expensive and time consuming.
Using a licensed Realtor with a top-notch team behind them like The Packer Group gives you the upfront protection of working with someone who knows how to protect your interests in the first place. Plus, if the stuff hits the fan, your Realtor will have resources readily available if something does go wrong.
- You still have to pay Realtor fees – Many make the argument that selling their home themselves saves them from paying Even if you choose not to list your house with a Realtor, if your buyer is working with a Realtor, you’re still going to have to pay their fee when you sell. In general, you’ll have to pay 3% of the sale price for them bringing you a buyer. If you choose not to offer that commission, Realtors may choose to not commit their time showing a home they would not get paid for.
If you’re going to pay the buyer’s Realtor fees anyway, why not go ahead and get the professional service, protection, and benefits of having a Realtor on YOUR side, not just the buyers’? Multiple studies have shown that homes sold with the help of a Realtor sell for a higher average price than those by the owner alone. This helps to either greatly offset the extra 3% to the seller’s agent or to come out ahead financially, all with the above benefits of using a Realtor.