If you are considering putting your home on the market, you might be contemplating whether to list your house For Sale By Owner or use an agency to list your home. Before you make your choice, let’s dive a little deeper into the pros and cons of For Sale By Owner (FSBO) listings.
The number one reason a seller would choose to use the FSBO method would be to try and save money by selling it themselves instead of paying a commission to an agent. FSBO sellers usually lack experience in the real estate industry and don’t always understand what they are getting themselves into. Without a professional, it is very easy for FSBOs to be taken advantage of.
When selling a home FSBO, sellers miss out on the resources that are included when working with a professional. Most FSBOs post signs in their yard announcing the sale, but how likely are buyers to drive by and want a tour without an agent? Some FSBOs may pay for a discount listing on an MLS (Multiple Listing Service) as another way to spread the word about their home for sale. Unfortunately, most agents will choose to not pass on FSBO properties to their clients due to the hassle associated with them. Buyer’s agents prefer working with professionals to avoid having to explain all that goes into a home sale on both sides.
When a seller decides on using the FSBO method, they are hoping to get an offer for the full asking price, but when a buyer is interested in purchasing a FSBO home they are usually hoping for a deal. Buyers tend to offer less than the price listed since they know that the normal commission costs are not applicable to the sale. This difference of opinion can make it difficult to negotiate a compromise. Ultimately, if the buyers are represented by an agent the FSBO seller has to pay the Buyer Agent’s commission anyway. With a lower purchase price likely and commission still involved it can be said that FSBO deals are not as beneficial as one may think.
So is For Sale By Owner the right method for you? It really depends. Partnering with RedefyFlatFee to sell your home for sellers interested in FSBO is a great compromise because it’s the best of both worlds, a professional realtor to sell your home that won’t break your bank. RedefyFlatFee has a service plan tailored specifically to FSBO sellers to help you sell your home for the flat rate of $1,500. For this low rate, you will get all the same amenities as a traditional realtor including a market analysis for your home, professional photographs, a personalized website and an MLS listing on all major platforms. Learn more about our
For Sale by Owner Flat Rate Solution.
Check out our corresponding Podcast: For Sale By Owner – Good or Bad?