Advantages and Disadvantages of Selling Your Home For Sale By Owner
August 11, 2020
Selling a home can be a stressful experience, especially without the help of a Realtor ®. A Realtor will guide you through every step of the selling process from helping determine a sales price, to creating and maintaining the listing and marketing your home to potential buyers. However, if you’re willing to invest the time, money and energy into selling your home on your own, the end result may mean more money in your pocket.
Inevitably, there are pros and cons to selling your home without the assistance of a Realtor, known as For Sale By Owner or FSBO. Continue reading to determine whether or not selling your home without the assistance of a Realtor is right for you!
Advantages
1. Pay Less Commission to Realtors
Most often, a Realtor requires a 3% commission on the sale of your home. This fee covers the time and effort they would spend marketing your home, showing it to potential buyers, as well as completing all the paperwork necessary to facilitate the sale of the property. However, if you choose to sell your home FSBO, then you would not have to pay commission to a broker on the seller’s side; therefore, you would retain more of the money from the sale of your home!
2. Maintain Control Over Your Property Listing
Maintaining your own listing means that you set the sales price, marketing strategy, and listing details. It will be your responsibility to create your listing, clean and photograph your home, as well as write a property description, including all the specific details that make your home unique.
In order to determine an appropriate sales price, a good place to start is by taking a look at comparable homes that have sold in your community over the past 12 months. Understanding what people are willing to pay for a home in your area will help you to determine a realistic sales price for your specific property.
3. Maintain Control Over Your Own Showing Schedule
Keeping your home in tip-top shape can be stressful! That’s why having control over your own showing schedule can be a blessing. If a prospective buyer calls for a property tour, you have the ability to schedule the tour on the day and time of your choosing.
Disadvantages
1. Lower Sales Price
According to experts at Zillow.com, research suggests that “sellers who use an agent garner a significantly higher profit than FSBO sellers, even after paying commission.” Reasons as to why an agent may net a higher price include their local expertise, marketing strategy, networking connections, and negotiation skills.
2. Marketing Takes Time & Money
Without an agent, getting your home in front of potential buyers is entirely the responsibility of the seller. You will need to coordinate getting the listing online, market the property via online listing services and social media, print brochures, etc. Furthermore, the seller will bear every cost associated with marketing the property to buyers.
3. Maintaining a Listing is Time Intensive
It may be overwhelming to continually answer calls, schedule tours, and set up open houses! Without continually investing time into selling your home, the process may take longer than if a Realtor was managing the process.
4. You May Still Have to Pay Commission
Even if the seller has not hired a Realtor, it’s still standard practice that the seller pays the buyer’s Realtor a 3% commission. According to the Zillow Group Report, “74 percent of buyers use an agent;” therefore, it’s highly likely your buyer will too. The seller would then be responsible for paying 3% commission to the buyer’s Realtor, as opposed to the 6% split between the buyer’s Realtor and seller’s Realtor should the house not be sold FSBO.
The choice to sell a home with or without the help of a Realtor is entirely up to the seller, as there are advantages and disadvantages in both scenarios!
At GoPrime, we’re here to help. We don’t just connect individuals with a loan – we connect families with their dream homes! Contact a local lender near you, today.