For Sale By Owner (FSBO)
FSBO, or for sale by owner, means that the homeowner is responsible for the entire process of selling their home. This involves deciding on a listing price, prepping the home (staging), listing and marketing the home, dealing with calls, texts, and emails from potential buyers, negotiating and drawing up contracts, and navigating the closing process. Taking all of this on to try and keep more of the bottom line is usually the main reason people choose FSBO.
According to Zillow research, 36% of sellers attempt to sell their home without using a realtor. In the end, only about 11% of them actually end up selling their home on their own. According to the National Association of Realtors, that number is even lower – coming in at around 8%. Of those, more than half ended up selling to someone who they already knew! When asked why they were choosing to sell on their own, the main response was to save money. Many feel confident in their ability to market and sell their own home, while others already have a buyer in mind.
The Bottom Line
According to NAR, the median sale price for FSBO in 2020 was $260,000. The median sale price for an agent-assisted sale was $318,000. That is a difference of $58,000! If you take this into account – even after paying a 6% commission – the median agent-assisted sale would still net roughly $39,000 more than a FSBO. I don’t know about you, but I can think of a lot of things I would do with an extra $39,000! Not to mention the time that could be saved. One survey among realtors found that selling a home can take between 20-200 hours. It could take the average home owner twice as long. For an agent, this is their full time job. As a homeowner trying to sell your own home, you will have to manage all of these responsibilities alongside your normal work day.
Many buyer’s agents avoid for sale by owner, as there is no guarantee of commission. This greatly limits the exposure an FSBO will get through real estate agents. As a way to avoid this FSBO could offer to pay a buyer’s agent 3% commission.
Utah is a nondisclosure state, making it difficult for an unlicensed individual to find solid data on how to accurately price their home.
Agents have access to MLS, which can not only help them more accurately price your home, but they have further reach with the marketing tools and networks available to them.
Consult With A Professional
When it comes to prepping your home to sell, an agent can offer an unbiased perspective on the improvements needed to make your property more appealing to prospective buyers. Some repairs are not worth the return on investment, while others can have a large impact. A knowledgable agent can help guide you through this process.
Ultimately, you have to weigh the options and find a solution that works best for you. If you or someone you know is thinking of selling their home, I would love the opportunity to guide them through the process from start to finish. I know how emotional even the thought of selling your home can be. Contact me here or give me a call at (425) 830-2828!