The Truth About For Sale By Owner ( FSBO)

Thinking about going the For Sale By Owner (FSBO) route?

Many people believe that they can sell their homes themselves to save money on commission costs. All you have to do is list your home on Zillow, and people will contact you, tour your home, and you'll find a buyer. Sounds simple, right?

The truth is that selling your home without an agent could be a costly mistake.

Selling a home involves many complexities, and it may come as a surprise that opting for a private sale often results in higher costs than the commission saved.

When it comes to the sale of your largest asset, hiring a professional is essential. So if you've been considering sticking a sign in the yard and selling your home on your own, here's my compilation of factors that you should consider first.

Are you considering selling your home without an agent?

Selling your own home is a BIG decision accompanied by significant responsibilities and major risks, so it's crucial to understand all the potential challenges and complexities that may arise before you decide to do it alone. Here are just a few reasons you may want to reconsider selling your home without an agent...

LET’S TALK ABOUT YOUR TIME

Are you prepared to leave work for showings and arrange these on your own? Do you know how to qualify a potential buyer? Are you ready to respond to endless calls and emails? That’s all before you even start negotiations...

AND MAXIMIZING EXPOSURE

One of the biggest risks of selling on your own is low online visibility. Because your home will not be listed in an MLS (Multiple Listing Service), it will not be syndicated to all the websites used by homebuyers in your area — which is A LOT. Marketing your home effectively is crucial to generating the most activity and ultimately finding the perfect buyer to help you net the most money.

DON’T FORGET ABOUT THE PAPERWORK

Understanding real estate contracts and legalities is crucial to protect your interests throughout the sale. A home sale is a major transaction with potential legal problems if something goes wrong.

PLUS, PRICING YOUR HOME CORRECTLY IS KEY.

Pricing your home correctly from the start is essential if you want to maximize your selling price. Real estate agents leverage market data, comparable sales, and their expertise to advise on the optimal listing price. Overpricing can deter buyers, while underpricing could leave money on the table.

BOTTOM LINE: NUMBERS DON’T LIE

Here's a thought-provoking fact: In 2023, the typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales. (that’s over 30% LESS!)

A FEW QUESTIONS TO CONSIDER FIRST...

  • Are you proficient in the legalities of the agreement of sale?
  • Do you have the budget for photography and marketing?
  • Do you know the market value of your home?
  • Are you prepared to leave work for showings and arrange these on your own?
  • Do you know how to qualify a potential buyer?
  • Do you have a third party to negotiate on your behalf?

If you answered "no" to most of these questions, then you may want to consider hiring a professional.

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