Here’s what you should know before deciding to sell your home without the assistance of a Realtor.

Homes that are For Sale by Owner, or FSBOs, are commonly seen in seller’s markets, or whenever homeowners want to maximize their profits by not hiring an expert agent and paying commission. 

FSBOs sound like a pretty sweet deal for sellers, but the statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit—enough to cover the commission and still line your pockets with extra money. 

According to the National Association of Realtors, the average FSBO sale price in 2016 was $185,000 (note that today’s market is higher than that), whereas the average sale price in 2016 for a home represented by an agent was $245,000. 

“FSBOs are less likely to get the necessary online exposure.”

Though the exact numbers will be different in today’s market, it’s a proven fact that you’re more likely to net more money if you choose agent representation. Here are a few reasons why FSBOs fail:

1. Marketing your home online. It’s not as easy as you think; FSBOs are less likely to get the necessary online exposure. Remember: Agents have access to more sites/databases. 

2. FSBOs are often priced incorrectly. Typically, they’re overpriced, because many sellers base their strategy on an online assessment tool like a Zestimate. Recommendations by friends or family can be equally misleading. 

3. You can underestimate/overestimate the price of fixing up your home. On one hand, sellers may falsely believe their home to already be a show-ready palace. On the other hand, sellers may unnecessarily spend a lot on renovations or fixes. 

4. Showings can be stressful. From setting up dates, to dealing with the incessant phone calls at work, showings are draining. It’s frustrating to wade through the gawkers who seem interested but have no real intention to buy. 

5. Preparing your own paperwork. Unless you’re familiar with the complexities of contracts and law, you should leave it to the pros. 

If you have any questions about the information covered in today’s message, feel free to call or email me. I would love to speak with you. We at the Callender Team pride ourselves on helping you make sense of an ever-complicating market.