The Real Cost-Effective way to Sell Your Home: FSBO Versus Selling With an Agent

For sale by owner or FSBO is an approach taken by home sellers who opt to sell their properties on their own without a real estate agent. In 2020, they comprised about 8% of American home sellers. About half of them go FSBO because they already have a buyer. But the common motivator for FSBO sellers is the money they will save on commission fees. 

In this blog, we will be comparing FSBO and selling with an agent. We will weigh the pros and cons of these two processes to help you decide which is a better option for you.

Savings

Selling a property is a time-consuming and emotionally challenging process. However, some home sellers are willing to exert the necessary time and effort to do it alone for the extra savings that can come out of the deal. But will you actually save money from going FSBO? According to studies, FSBO homes sell for an average of 26% less than properties sold with an agent, which makes the choice ineffective when it comes to commission savings.

Staging 

If necessary, staging your home for sale is a part of the real estate selling process to attract more potential buyers and receive higher offers. This process can be time-consuming and stressful for FSBO sellers without staging experience. Hiring a professional home stager is an option however it doesn’t come cheap. Real estate agents have extensive experience with dressing a home to make it look more appealing to potential buyers. They know a network of the best stagers and photographers in town. 

Marketing

FSBO sellers tend to choose the cheaper methods in marketing their homes because they’re after savings. Their marketing options include a free or paid ad on social media, local newspapers, radio, or websites that cater to FSBOs. Real estate agents, on the other hand, have access to a Multiple Listing Service or MLS, an exclusive website where realtors share properties for sale. Buyers are usually reliant on their agents to gain access to listings that matched their criteria. This gives sellers working with an agent the advantage to get the best offer for their homes.

Legal Paperwork

The process also involves tedious paperwork including crucial legalities. Part of a real estate agent’s expertise is these legal processes. One of their education requirements is to stay up to date on all state real estate commission requirements and processes involved in a real estate transaction. For FSBO sellers, it is important and wise to hire another professional, a real estate lawyer, to ensure that nothing slips through the cracks.

Time efficiency

If you need to sell your property with less wasted time and energy selling with a real estate agent is the better approach for you. They have the right network, skills, and experience to bring more potential buyers to your property. You may list your home on your own if you choose to but you have to anticipate a slower pace in your selling timeline and less reach to potential buyers.

Selling a home is not an easy process and it comes with a cost. Going FSBO may sound like the best option for you if you want to cut down this cost, however, if you are not an expert in real estate it will be harder than you think. Home selling is a complex transaction that requires deep knowledge and experience. Unless you have these two, you’re at risk of potential financial and legal pitfalls. And these are just some of the essential things that a real estate professional can offer to the table.