In a sellers’ real estate market, some homeowners might be tempted to try to sell their home on their own instead of working with a real estate broker. This is commonly known as For Sale by Owner, or FSBO. When the inventory of homes for sale is as low as it is today, buyers are eager to purchase virtually any house that comes to market. This makes it even more tempting to those selling their own home. Some sellers think selling their house will be quick and easy and see today’s market as an opportunity to list their home FSBO. We will explain why that’s a big mistake and may actually cost you more in the long run.
For Sale by Owner Homes Typically Sell for Less
According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their own home as an FSBO did so to avoid paying a commission or fee. In reality, selling your own home likely means you’ll net a lower profit than when you sell with the help of a real estate agent.
The National Association of Realtors report explains, “FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000…Sellers who began as an FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”
When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):
That’s a lot of money to risk losing when you list your home FSBO – far more than what you would save on commission or other fees. Despite the advantages, sellers have in today’s market, it is crucial to have the support of an expert to guide you through the process. Real estate professionals are trained negotiators with a lot of housing market insights that average homeowners may never have. A real estate agent’s expertise can alleviate much of the stress of selling your house and help you close the best possible deal when you do.
Is For Sale by Owner Right for You?
If you were thinking about selling your own home, you may want to rethink the FSBO process. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. Listing a home for sale on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire a real estate agent and still make the same amount of money? Before you decide to take on the challenge of selling your house on your own, contact a real estate agent at Wenzel Select Properties to discuss your options.
Wenzel Select Properties is located at 4941 Main Street in Downers Grove, Illinois. Our real estate office is in the heart of downtown Downers Grove. We are just minutes away from Interstates 88, 355, 55, 290, and 294. Wenzel Select Properties real estate brokers are available to meet with you 7 days a week – Monday through Sunday. Call a real estate agent from Wenzel Select Properties today at (630) 430-4790.