Selling Your Home on Your Own? It’s Tempting, But Make Sure You Proceed with Both Eyes Open!
A home that’s listed as “For Sale By Owner,” or often referred to in the industry as a “FSBO,” usually starts out under a good premise:
Save money on the agent commission and maximize the return on investment.
As noble and noteworthy as this intention may be, often the opposite happens, and the seller not only makes less money on the sale of their home, but they have to take on all the headache and paperwork (and legal liabilities) on top of that. In fact, many studies show that on average, FSBO sales bring in less money than an agent-involved sale! Often people who do sell on their own soon realize they still have to pay commissions to an agent —the buyer’s agent—and without the expertise of an agent on their side, may not get top dollar from their home sale.
Some studies show that only 11% of home sellers end up successfully selling their home on their own, many eventually turn to the help of an agent in the end. And those who do sell it on their own, on average, sell it for approximately 26% less than an agent represented property. [National Association of Realtors® 2020 Profile on Home Buyers and Sellers]
There are many other numbers and statistics that show the perils of selling your home on your own. In fact, as the home sale process steadily gets more complicated and the legal liabilities increase, the number of people trying to sell on their own has steadily decreased, by nearly 50% since 1981. [National Association of Realtors® 2020 Profile on Home Buyers and Sellers]