When you decide to sell your home, you’ll be faced with an enormous amount of decisions to make during the process. One of those decisions is whether or not you want to hire a real estate agent to assist with the transaction or go the DIY route and sell the home for-sale-by-owner (FSBO).
FSBO is a way to sell a home without enlisting the professional help of a real estate agent. When you decide to go this route, you are in charge of everything from start to finish: staging, photography, pricing the home, negotiating contracts, and everything else.
According to Zillow, 36% of home owners try the FSBO route but only 11% are successful in completing the transaction. There are many challenges along the way when trying to sell your home FSBO which leads to the majority of people hiring an agent.
For sale by owner benefits
Avoid paying real estate commissions: The most common reason that people want to sell their home by owner is to avoid paying real estate commissions. Commissions are fees that sellers pay to real estate agents based on the closing price of the property. They can range but the average commission is about 6% and is split between the buyer’s agent and the seller’s agent after it is deducted from the proceeds of the sale.
Listing price: Agents play a big role in what the listing price should be and without one, you’ll be in complete control of what the price is. This requires taking any emotions out of it and looking at it from the perspective of the market. Additionally, you can always hire an appraiser to give you an accurate price of what the home is worth.
Control of open houses and showings: Controlling when you have open houses and showings can be attractive as you won’t have to worry about surprises. Last minute showings and open houses that last all weekend won’t be necessary when you are in control. Additionally, if there is a last minute showing, you won’t have to worry about if your agent is available or not to assist.
Sell for top dollar: If you are deciding to sell FSBO, you probably have time to wait for the best offer. This puts you in a position to leverage opportunities that come your way and advertise the home in the best light possible. FSBO sellers can advertise their homes on Zillow, and forsalebyowner.com
More neighborhood knowledge: When talking with potential buyers, you’ll be able to accurately describe to them what it’s like to live in the community. You can talk about nearby restaurants, how nice the neighbors are, the walkability, etc. These are things your agent won’t be able to do because they most likely don’t live in your community.
Real estate agent benefits
Pricing strategy: A good real estate agent is going to know to conduct a market analysis of your home that is going to help you get qualified buyers in the door. Especially if they already do work in your community and are familiar with the area. A good indicator of an experienced agent is the number homes sold by them over their career.
Connections: Experienced agents will want to ensure your home is shown in its best light and will have connections to photographers, home stagers, and people that can make minor repairs if necessary. This will ensure you get the sale price that you want.
Access to the MLS: This is one of the main reasons to hire a real estate agent as they will have access to MLS which is where the majority of homes are listed for sale. In addition to the MLS, an agent has the ability to market the home on social media, through other agent connections, and by their name recognition. They should be able to get a lot more eyes on your property than if you just simply advertised it yourself.
Negotiations and paperwork: Spotting a serious buyer takes experience and an agent that can easily do that will be able to help you navigate negotiations to receive the strongest offer possible. They’ll also help you negotiate counter-offers to ensure maximize the final sale price. In addition to negotiations, an agent will know how to navigate the contractual side of the transaction and all the documentation that goes with it.
Flat-fee agents represent the best of both worlds when it comes to offering the full service of a real estate agent but all the savings of FSBO. For a low, flat-fee, a company such as Trelora can do everything a real estate agent does but at a much cheaper rate. You won’t have to pay the 6% commission, you’ll get to maximize your return, and have someone there to help navigate the transaction as a whole.