For Sale by Owner (FSBO)
The main reason people sell their home privately without a real estate agent is to save on costs. In a deal where there are no real estate agents involved, you could save a sales commission of up to 3% of the sale price. For a $300,000 home, that commission can add up to as much as $9,000.
Consider, however, that your buyer will likely use a real estate agent, in which case you will be expected to pay the buyer's agent up to 1.5% of the sale price, or as much as $4,500 for a $300,000 home. And don't forget, you still have to pay a lawyer to finalize the deal.
4 Reasons to Sell Your Home Yourself
There are a variety of websites that can help you sell your home privately. These are often called for sale by owners (FSBO) websites. You can also pay a discount broker a small flat fee to advertise on the Multiple Listing Service (MLS®) site.
It's easier to sell your own home in a hot real estate market. When home sales drag, finding a buyer yourself may not be so easy.
- You have the time and ability
- Lower sales costs
- More control over the price
- More control over the sales process
What Every Homeowner Should Know Before FSBOing
5 Reasons to Use a Real Estate Agent
- Their knowledge, skills and resources
- Convenient because they handle all aspects of sale
- No separate sales costs beyond agent's commission
- May get you a higher price
- May sell your home faster
5 Questions to Ask Yourself
If you answered no to any of these questions, you may want to use a experienced and knowledgeable real estate agent.
- Are you confident you can sell your home for a price close to what an agent would get for you?
- Do you want to be highly involved in the sales process?
- Will you have time to show your own home?
- Are you comfortable showing your home to buyers?
- Are you comfortable negotiating with buyers and their agents?