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Show of hands - who has sold their property FSBO before?
According to the National Association or REALTORS®, 10% of recent homes sold in 2022 were FSBO, up from 7% the year before, and 50% of FSBO sellers actually knew their buyer when they sold.
Shockingly though, FSBO properties typically sell for up to 34.8% LESS than their agent assisted counterparts. For most, their real estate is the biggest asset they will ever own so why gamble?
For the $500,000 home, the potential total agent commission if listed at 5% is $25,000 (2.5% to buyer's agent and 2.5% to the listing agent). Translation: the FSBO could sell for up to $174,000 less. What do you think about that $25,000 agent commission savings now?
Some thoughts to consider:
KNOWLEDGE: You're not an expert in buying/selling real estate
LIABILITY: Any mistake you make can be costly. Agents carry what is known as Errors & Omissions Insurance (E&O) to combat mistakes. You expose yourself to potential liability because you're not an expert in this field, and open yourself up for exploitation, regardless of whether or not there was ignorance or malicious intent on your part.
TIME: The amount of time you'll likely spend navigating the real estate waters will likely surpass that of a professional
INVESTMENT: a professional real estate agent will absorb costs for things like professional photos and other marketing. If you attempt to sell on your own, you pay for these fees without guarantee of reimbursement or sale in the future. If you decide to take your own photos with your handy dandy camera of cell phone, you're doing your property a disservice. Most buyers decide based on the listing photos whether or not they will visit the property and consider a sale. If you cripple yourself with less than desirable photos and a professionally presented property, you'll likely end up with less cash in your wallet or perhaps no sale at all.
PERCEPTION: Often the perception of a FSBO is that they're not serious about selling and are just "testing the waters" to see what they could potentially reap. In addition, you're inadvertently advertising to real estate professionals you do not find value in their field and you don't take buyers seriously that are represented by an agent.
Don't get me wrong, there's value in your buying/selling experience. Perhaps you've bought and sold 3 times in your life so far. I've personally closed that number in a week. The average REALTOR® in 2021 sold 12 homes in one year so consider that when contemplating FSBO. You're likely leaving some things on the table, and more than likely that comes down to money in your pocket. Leave the real estate buying and selling to the professionals.
Heather Lupton, Broker/Owner
Heather@AspenGroveRealtyMT.com
406-802-4527
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