For Sale by Owner vs Using an Experienced Agent or Broker
The National Association of Realtors has tweeted about a new trend in home selling: FSBO, or “for sale by owner.” FSBO sellers are people who sell their homes without using a real estate agent or broker. They often post for sale signs or use a “For Sale by Owner” sign in the yard. The concept is gaining popularity, but there are some disadvantages to selling your home FSBO.
A typical commission on a home sale is six percent, paid by the seller. It is split between the seller agent and the buyer’s agent. Although this commission will be factored into the final price, it can be substantial enough to lower the monthly home loan or mortgage payment. In addition to the commission, FSBO homeowners can save on the cost of staging and photography. Buying a home FSBO can also save them money on repair costs, repairs, and moving expenses.
If you’re selling a home for the first time, it’s best to work with an agent. A realtor can take professional photographs of your home, whereas a Realtor can bring in a professional photographer. Some real estate agents have a photographer they partner with for every listing, which reduces the cost for the agent. While some homeowners prefer to sell their homes on their own, most home sales are handled by an agent, and the majority of buyers discover homes through the Multiple Listing Service (MLS).
Another advantage of FSBO is that it can save you thousands of dollars on commissions. Most real estate agents charge a six percent commission, which can make your monthly payments on your home loan or mortgage more affordable. Aside from saving on commissions, there are several other advantages to selling an FSBO. Ultimately, the pros outweigh the cons. The biggest advantage is that FSBO is less expensive.
Another major advantage of FSBO is the fact that it is much less expensive. An FSBO seller can save up to six percent of the cost of the home compared to hiring an agent. Depending on the market and location of your home, this could be significant savings on your mortgage and home loan. And if the house is located in an area with a high number of rental units, FSBO may be the way to go.
While FSBO sellers can save thousands of dollars on commissions, a real estate agent’s fees can be prohibitively high. An FSBO seller should consider the benefits and disadvantages of FSBO. Using an agent can reduce the number of FSBO listings. Besides saving thousands of dollars, a savvy FSBO seller will be able to negotiate a lower price with the buyer.
