Main Content

Think You’ll Save Money When You ‘For Sale By Owner’? Think Again

If you or someone you know has ever considered completing a For Sale By Owner (FSBO) on their property, it’s highly likely the main reason was to save themselves money. The thought of not having to pay a realtor their commissions and fees and just selling your home on your own can be an enticing one, but the truth of the matter is, you’re not really saving money at all; a vast majority of the time completing a FSBO can actually cost you more in the long run. Multiple studies have been done regarding this and it is estimated that when you use an agent to sell your home you’ll actually be able to sell for thousands of dollars more when compared to a FSBO.

Listing at a higher price point isn’t the only reason that you should work with a licensed real estate agent when selling your home. Over 90% of all buyers begin their search online, most of them on the Multiple Listing Service (MLS). Real estate agents are the only people that have access to listing properties on the MLS, so homeowners that choose to FSBO are missing out on a large percentage of buyers that may only look there. Not only do realtors list on the MLS, many also have additional internet marketing strategies that homeowners aren’t aware of. The days of advertising your home via only yard signs and newspapers is long gone.

Did you also know that when you complete a FSBO, you are the one required to do the negotiating and the paperwork? The number of people you’ll have to work with can add up quickly, as can the amount of paperwork that you are required to complete. If you’re not one for negotiating, especially when it comes to money, then a FSBO probably isn’t for you. It’s also imperative to note that if all paperwork regarding the sale of your home isn’t completed correctly there could be legal ramifications for you in the future.

If you are still considering a For Sale By Owner on your property make sure you know the facts about how much money you’ll actually be saving yourself, if any. It’s still smart to speak with a licensed realtor to make sure that you are doing everything you need to in order to ensure the legality, completeness and accuracy of all aspects of your transaction.