How to Sell your Home: With or Without an Agent?

You’re getting ready to sell your home, but you want to make the most out of the deal right? So you are contemplating selling it yourself. While there are many perks to selling your own home, there are also many drawbacks.

The number one reason people sell their own home is to save on the cost of an agent. On average this is about 6% savings (on the sales price) for a seller. The savings can be substantial especially the more expensive the home is. As a seller, you will have complete control over the sale, everything from pricing, showings, marketing and advertising. Therefore, you can choose how much or how little you want to spend on these things and how you want your home to present. This can be a lot of work for someone to do alone, especially if they are not familiar with the process. Pricing can be the biggest downfall for a sale by owner (FSBO). People tend to place more value on their own home than what it may really be worth. An overpriced home is the main reason any home doesn’t sell.

According to the 2017 National Association of Realtors Profile of Home Buyers and Sellers, the average FSBO sold for $190,000 compared to $249,000 for agent-assisted home sales. What a FSBO saves in commission they may lose in the final sale price. An agent does not have an emotional attachment to your home so they are able to negotiate with your best interest. An offer that may make you bulk at, an agent will see as a starting point for negotiating to get you the price you want. When your home is priced correctly with lots of visibility on the MLS – you can attract many qualified buyers.

Getting qualified buyers is another hurdle FSBO may have.  There are lots of people not represented by an agent who would love to do a rent to own, or would like you to hold the house while they get their finances figured out, or want to try and nickel and dime you for things that wouldn’t fly if an agent was involved. This can be tricky waters to navigate and also a huge waste of time. If you home is represented by an agent, you can bypass all this and only deal with qualified buyers.

Once you receive an offer as a FSBO, you will want to have an attorney review it. Again this is an additional cost but highly recommended to ensure the offer is legit and complies with real estate law.

Is a FSBO risk worth the reward? This is up to you. While it’s true that you will save money by eliminating the real estate agent in the transaction, you will not remove the need for the real estate agent’s job. According to the National Association of Realtors, more than 90 percent of homeowners who initially tried to sell on their own end up hiring a real estate agent anyway. If you decide to go FSBO make sure to understand the entire process and the role you will be playing in the sale of your home. In a perfect world, it may seem like the ideal option. But unfortunately things rarely go as planned. Without strong knowledge in real estate sales or current market trends, I would recommend hiring an agent. It will help the entire process and the price you pay will be worth it in the end.