Many believe they can save a significant amount of money by selling their home themselves. It may seem alluring to cut out a professional REALTOR® to save thousands, but what are you really in for and what do the statistics say about how quickly and for what price you will be able to sell your property? Once you answer the questions below and review the national statistics for FSBO sales you will be better equipped to realistically assess what’s involved. Only you can determine whether you should attempt to sell what is possibly your largest investment all alone.
Ask yourself the following:
- Do you know how to determine the current market value of your property?
- Are you aware of conditions in the marketplace today that affect value and length of time to sell?
- Do you have the knowledge and sales skills required to sell you property?
- Do you know how to advertise effectively and what the costs will be?
- Are you aware that prospective Buyers will expect you to lower your price because no real estate agent is involved?
- Are you concerned with having strangers walk unaccompanied by a real estate agent through your home?
- Do you know how to determine if a Buyer can qualify for a loan?
- Do you understand the various types of loans Buyers may choose and the advantages and disadvantages of each for you, the Seller?
- Do you need to hire a real estate attorney? If so, do you know what the cost will be and how much liability they will assume in the transaction?
- Are you familiar with enough real estate regulations to prepare a binding contract and any subsequent counter offers?
- Are you aware that every time you leave your home you are taking it off the market until you return?
- Are you prepared to give up your evenings and weekends to show your home to potential Buyers and those “just looking?”
- Do you understand the steps of escrow and what is required of you and the Buyer?
For Sale By Owner (FSBO) Statistics
- FSBOs accounted for 8% of home sales in 2020. The typical FSBO home sold for $217,900 compared to $295,000 for agent-assisted home sales.
- FSBO methods used to market home:
- None: Did not actively market home: 46%
- Yard sign: 25%
- Friends, relatives, or neighbors: 22%
- Social networking websites (e.g. Facebook, Twitter, etc.): 14%
- Open house: 11%
- Multiple Listing Service (MLS) website: 6%
- Online classified advertisements: 5%
- For-sale-by-owner websites: 5%
- Video: 2%
- Print newspaper advertisement: 1%
- Direct mail (flyers, postcards, etc.): 1%
- Most difficult tasks for FSBO sellers:
- Preparing/fixing up home for sale: 12%
- Understanding and performing paperwork: 10%
- Getting the right price: 9%
- Selling within the planned length of time: 6%
- Having enough time to devote to all aspects of the sale: 5%
Source: 2020 National Association of REALTORS® Profile of Home Buyers and Sellers