Are you a homeowner ready to sell your home? Thinking of becoming a For Sale By Owner (FSBO) without the help of a real estate agent? Let’s go over the pros and cons of selling your own home.
Pros at FSBO
- You save money on commissions because you don’t have to pay commissions.
- You have the control. You can choose the appointment times, how to negotiate with the buyer, etc.
- You can choose the price from your own real estate listing.
Cons at FSBO
- You will probably sell your home for less than it is actually worth. Without the representation of a broker, it is difficult to set the correct price for your home without all the tools and resources that an agent has.
- You may have a few places to promote your home, but you won’t get the best exposure in the real estate market. Realtors have programs, devices, and methods on how to get your home fully exposed and seen while it’s on the market.
- You don’t get reliable feedback on how your ad is being rendered. Other industry professionals may be nice, but not always honest about how you could improve your home to sell it faster.
- You are responsible for all legal forms and assume the risk of financial and legal liability.
- Things can also get very complicated in a real estate transaction, so you need to educate yourself in all areas of a home sale. You will need to know who to contact for legal advice, home repairs, title companies, inspections, etc.
- It will be difficult for you to decide who is an interested and qualified buyer, without previous experience.
- When you find a qualified buyer, it will be difficult for you to negotiate and close the deal easily, as buyers have a professional representative negotiating for them and you do not.
- Almost all transactions have some drawback or bias that complicates the deal. This is where a professional agent really comes in handy because their job is to keep everything smooth and eliminate these complications with their knowledge of real estate. Selling your own home without an agent can be stressful and can be difficult from a listing point of view, through to hiring and closing.
Yes, there seem to be more Cons than Pros when it comes to selling your home through FSBO. However, don’t be discouraged if you still want to do For Sale By Owner. Just try to educate yourself as much as possible about real estate and transactions and keep in mind that you have a lot of work ahead of you. It is strongly recommended that you hire a professional if possible. The process will be less stressful and complicated for you, making selling your home a pleasant experience.