In vendor market, some homeowners might be tempted to try sell their house on their own (known as For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is like that low as it is today, buyers are eager to capture almost every house that comes to market. This makes it even more tempting FSBO. As a result, some sellers think that selling their house will be breeze and look at today’s market as an opportunity FSBO. Let’s unpack why this is a big mistake and may actually cost you more in the long run.
According to the Profile of Home Buyers and Sellers published by the National Association of Real Estate Agents (NAR), 41% of homeowners who tried to sell their house as FSBO did so to avoid paying a commission or fee. In fact even in a retail market, selling on your own probably means you will earn a lower profit than when you sell with the help of an agent.
The NAR report explains:
“FSBOs are usually sold for less than the selling price of other homes; FSBO homes sold for an average of $ 217,900 in 2020 (more than $ 200,000 in 2019), and still much lower than the average selling price of all homes at $ 242,300. Agent-assisted homes sold for an average of $ 295,000. “
When the seller met the buyer, that amount was even lower, coming in at $ 176,700 (See graph below):That’s a lot of money to risk losing when you FSBO – much more than what you would save on commission or other fees. Despite the advantages that vendors have in today’s market, it is nevertheless important to have the support of an expert to guide you through the process. Real estate professionals are trained negotiators with plenty of surveys of housing markets that average homeowners may never have. An agent’s expertise can alleviate a lot of stress selling your house and help you close the best deal possible when you do.
If you are ready to sell your house this year and you are considering doing it on your own, be sure to carefully consider that decision. Chances are you will earn the most by working with an experienced and knowledgeable real estate agent. Let’s connect to discuss as a reliable advisor can help you, especially in today’s market.
Content previously posted in Keep Current Things