FSBO (For Sale By Owner) vs Hiring a Real Estate Agent

You're probably asking yourself, "Why should I hire a real estate agent when I can sell my own house and save on agents' commission fees?"

Here's what we know according to the NATIONAL ASSOCIATION OF REALTORS®, 2021:

• FSBOs typically sell for less than the selling price of other homes

• FSBO homes sold at a median of $260,000 last 2020, significantly lower than the median of agent-assisted homes at $318,000.

Despite this, you can go it alone by selling your house on your own. With this, you don't have to pay commissions (Professional Fee) on the sale of your home, which varies depending on where you live. However, statistics show that with the professional expertise of a licensed realtor, you will Net more money than if you didn't use a realtor even with paying the professional fee.

Here's what being an FSBO (For Sale By Owner) means:

• you'll have to do all the marketing yourself

• you'll have to spend time researching what comparable houses have sold in your area and how much they went for

• you'll have to do all the paperwork—if you don't do it right, there could be problems with the sale later on

• you'll need to be an experienced negotiator—you should have experience with real estate transactions in your area

 

Again, you can sell your house all by yourself without hiring a realtor, BUT it is risky, stressful, and time-consuming.

Hiring a real estate agent means they'll handle pretty much everything:

• Marketing your home quickly and efficiently
• Staging and marketing make ready for the property
• Professional Photography & Videography
• Local, National & Global Marketing Exposure (Casting the largest net out to the largest buyer pool)
• Digital ads

• Setting up showings
• Prequalifying buyers & ensuring they are who they say they are...No stranger danger!!

• Negotiating with buyers on your behalf and get them to pay top dollar for your house
• Negotiating inspection requests

• Working through any issues that come up during escrow (and there will be issues)

• Closing on the deal

• Handling all the paperwork—all you have to do is sign on the dotted line

• Organizing open houses, helping buyers find financing, and more

Realtors are local market experts. Having an experienced agent by your side will give you access to their knowledge and expertise.

Whether you decide to list with an agent or DIY, here are a few good-to-know facts that may help with your homeselling journey:

•  7% of recent home sales were FSBO sales in 2021

• 90% of home sellers worked with a real estate agent to sell their homes 

• less than 1% sold via iBuyer (NAR, 2021)