You may have driven by a neighbor’s house and seen a sign that reads “For Sale By Owner” (or “FSBO”) in their front yard. Now, it’s time to sell your own home and you’re remembering that sign. You may be thinking to yourself, what are the benefits of selling my home by myself without a realtor? What are the disadvantages? This article will highlight considerations you should take into account before choosing which route to take when selling your home.
Benefits of selling your home yourself
The benefits below may help you come to the conclusion that selling your home yourself is the right move for you. Check out why you should consider this route:
Lower or nonexistent commission fees
Not having to pay a commission check to a real estate agent will save you plenty of money. This is the biggest reason most people attempt to sell their home on their own. Typically, you can expect to pay a real estate agent a percentage in commissions based off of your home’s sales price. Not only to your agent, but the buyer’s agent as well. If you’re selling your home yourself, you will only have to pay a commission to the buyer’s agent – or if you’re lucky and you find the buyer, no one at all!
Commitment to selling your own home
If you decide to go the FSBO route, you are the sole entity dedicated to selling your home. Most Realtors have multiple different clients at once. You won’t need to worry about your home getting the attention it needs in order to sell if you’re in charge.
You know your home better than anyone else
You know so much about your own house. You definitely know what it’s like to live there, what the neighborhood is like, and you’ll know about nearby developments and amenities. This is key information when it comes to marketing your home. Buyers want to know what it’s like to live there.
Struggles you may face when selling your home yourself
With every benefit, there comes an opposing side. Selling your home yourself is not necessarily easy work. It’s possible, but not for everyone. These are the common struggles people face when they decide to go without a real estate agent:
Marketing is not as simple as 1, 2, 3
Realtors do have insider knowledge about the industry. They also have access to an MLS site that could put your home in front of other agents and in turn tons of buyers. It sometimes takes more than posting your home to Zillow and Facebook Marketplace to sell. You can tackle this problem by researching the best ways to market your home and post your listing on multiple different websites.
You’ll need to make sure potential buyers are qualified
The responsibility to screen a potential buyer is in your hands. You can ask questions like:
- Do you need to sell a home before purchasing?
- Do you have an agent?
- Are you pre-qualified with a lender?
- When do you plan to move?
Mortgage pre-approval is different from pre-qualification. Read this article to help you better understand the difference – and how it affects you as the sole seller of your home.
Selling a home on your own is time consuming
If you aren’t a real estate agent yourself, or don’t know too much about the industry, legal terms and jargon may be overwhelming. If you aren’t fully confident that you can put in the time and effort up front to set yourself up for success, you may want to hire a real estate agent.
The ends justify the means
FSBO transactions aren’t for everyone. However, if you decide to sell your home yourself, you can save lots of money. You’ll learn a lot about the real estate industry. The real estate industry can offer you plenty of opportunities. If you’re interested in selling your home yourself, we’re here to help! Contact us any time – we are more than happy to answer any questions you may have.