You We all know that agents are expensive. They take 6% of your home’s sale price as their average commission! And while the vast majority of homeowners still choose to hire a listing agent, others brave the world of FSBO – For sale by owner.
So if you’re thinking of selling your home, which one should you choose?
If you’re trying to decide whether you’re better off taking on the ultimate DIY project or enlisting the help of a local real estate professional, read on for the benefits of both types of sales.
What is ‘for sale by owner’, exactly?
For sale by owner (or FSBO) is when you list your home for sale without the help of a real estate agent. When selling on your own, you become responsible for the process from start to finish. That includes pricing, staging, listing, negotiating, drawing up paperwork, and closing.
So, why sell FSBO if it’s so complicated? Most sellers decide to sell alone to avoid paying the standard 6% commission of real estate agents.
BUT, while it’s true that FSBO leaves money in your pocket, hiring a local real estate agent has huge benefits that you can’t access without giving up that commission. And it can even make you more money in the long run than selling by yourself!
How? Read on to find out.
Benefits of FSBO (for sale by owner)
1. No need to pay the listing agent’s commission: Commissions average between 4% to 6% of the home’s purchase price and are usually paid by you, the seller. Typically, the buyer and seller have their own agents, with the commission split between the two. So keep in mind, if you sell by yourself, you will still need to pay the commission of the buyer’s agent!
2. Complete control of the listing price and sale process: Without an agent, you’re the sole decision-maker when it comes to your list price and the process of selling your home. Add your input into all decisions. And say NO to house showings when they aren’t convenient for you. (although you’ll need to organize and attend all the showings now… a worthy sacrifice?)
3. You’re motivated to sell for top dollar: You know your home better than anyone else, and it’s your money on the line, so you’ll invest the time and energy to advertise your home that no agent ever could. FSBO sellers can advertise online (where 79% of buyers say they search) on websites like AQRE Home. There are also online services that can get your home listed on the MLS. They usually charge a flat fee under $1,000. Don’t forget about professional photos, signage, and print ads, though! Those will eat away your budget fast.
5. You’re the neighborhood expert: You can speak to potential buyers about not just the home itself, but what it’s like to live in the community. After all, you know your neighborhood best. Sharing that knowledge can be a huge selling point with buyers.
Benefits of working with an agent
1. They understand current fair market value and price your home strategically: When you work with an experienced, local agent, they should have a great handle on what your home is worth, and what kind of price will get offers flying to you.
2. They’re objective experts: As the home’s owner, it can be challenging to set aside your attachment to your home and focus on the process of selling. That’s where agents can help, making home listing and negotiations more logical and less emotional.
3. They have a professional team at their disposal: Agents have relationships with photographers and home stagers, other local agents, and real estate marketers. They can work as a team to highlight things that local buyers want, getting your home sold quickly.
4. Access to extensive market exposure: With access to the local MLS and online listing portals, social media presence, professional networks, connections with other agents, and name recognition, your real estate agent can get a lot of eyes on your listing and plenty of potential buyers in the front door.
5. Buyer’s agents are more likely to show your listing to clients: Real estate agents are paid on commission, so some agents may not take the time to show your FSBO listing to their clients, since there’s no guaranteed commission.
6. They’ll negotiate professionally: Experienced agents can spot serious buyers and guide you toward the strongest offers, which eliminates the burden of calls and negotiations with less motivated shoppers. Bottom line: They’ll help you get as much money as possible.
7. They know the paperwork required: There’s a lot of documentation involved when you sell a home, and without an agent, the burden of making sure it’s complete and accurate falls on you, the seller (or an attorney you’ve hired to help).
Selling your home means making dozens (if not hundreds) of decisions, starting with whether to work with a real estate agent. While the vast majority of homeowners hire a listing agent, others brave the world of FSBO – For sale by owner.
We hope this article has helped you make your choice, and brought you closer to listing your home for sale.
And when you’re ready to list, list with AQRE Home!
At AQRE Home, you can list for free and get offers automatically in your inbox. Plus, the entire transaction could be handled online! Without the need for travel, the time to sell your home can be cut even further.
If you are interested, our team can even match you with a pre-approved agent in your area. We only partner with top-performing professionals in your market who’ve earned our seal of trust. They earn it by actually caring about your financial goals, so you can trust their advice and expertise.
List for free today at www.aqrehome.com!
And if you want to refinance or get pre-approved for a mortgage before you start looking, visit our partners at AQRE Lending for a quick and easy pre-approval process that will get you the financial results you are looking for.