Should You List Your Home For Sale By Owner?

The do-it-yourself trend is carrying over into real estate, with an increasing number of sellers choosing to forego paying a commission to an agent and opting to list their home for sale by owner instead.
By doing it themselves, some homeowners believe they can save money and sell their property faster because they know their own home better than an agent .
Younger generations, especially millennials, are more likely to list their home for sale by owner than baby boomers. And with the rise of social media and access to multiple digital marketing tools online, it can be easy to assume that selling homes is simple.
However, the reality is quite different. According to the National Association of REALTORS®, of the one in three homeowners who list their home, only 11% are successful in closing the deal without the expertise of a professional.

The Benefits of Listing Your Home For Sale By Owner (FSBO)

The most obvious benefit to listing your home for sale by owner, (FSBO), is the cost saving. Most real estate agents work on a 5 to 6% commission rate, but if you sell your home on your own, you don’t have to pay that fee. This can save you thousands of dollars, which can be used toward your new home.
Of course, if your buyer is working with an agent, you will still have to pay their commission (usually 2.5 to 3%), but that’s half of what you would have paid in commissions otherwise.
For instance, if you are selling your home for $400,000, 6% commission would be $24,000 that you’d have to pay to the real estate agents for representing you and your buyer in the transaction. If you successfully sell as a for sale by owner, you would only pay $12,000.
Other benefits to selling your own home include having greater control over the sales process and transaction, plus the ability to dedicate more time to the sale than an agent potentially could.
However, there are some drawbacks and challenges to listing your home for sale by owner. Fortunately, these are things that a skilled professional real estate agent can easily help you navigate. In most cases, the disadvantages of listing your home FSBO will outweigh the benefits. Here are some of the reasons you should consider leaving your home sale to the professionals.

Real Estate Agents Help Avoid Emotional Sales

It’s no secret that selling your home can be an overwhelmingly emotional and stressful experience. Working with a professional real estate agent can help you avoid making costly mistakes, including pricing your home too high, refusing to negotiate with a buyer, or giving up too soon and accepting a lowball offer—especially if you’re on a hard deadline to sell your home. The right real estate agent will communicate on your behalf, taking care of the details for you.
Working with an agent can also help to soften the blow when a potential buyer doesn’t love your home like you do, and can help provide positive and productive feedback along the way. After all, constructive criticism is best received when it’s coming from someone you know is on your side.

Selling Your Home?

Thinking about selling your home and wondering what type of sale is right for you? We can help you understand the value of your home with a free consultation. You can also check out our home selling checklist.