Should I Sell My Home Myself? (FSBO)
We'll start by saying that we want you to sell your home in the way that fits you and your situation. If you're planning on tackling this yourself, we truly wish you the best.
But, by the time you're done you will most likely have netted less money than if you had just hired a professional. In addition, you will spend hours:
Figuring out paperwork
Showing the house
Managing incoming calls from buyers
Staging the home
Finishing up those DIY projects that have to be done before the home goes on the market.
Essentially, it's a full time job in addition to the responsibilities you already have.
The sale of a home is a very large legal transaction that can be highly emotional and unstable to the very end. There are many different, easily missed nuances. Various legal documents need to be provided in a timely manner. Falling short can invite legal ramifications. You don't want to be in that situation.
A research study in July, 2017 by Dr. Michael Sklarz and Dr. Norman Miller from Collateral Analytics found that FSBOs sold for an average of almost 6% lower than comparable homes sold through an agent.
So, you save about 6% on commission, sell for about 6% less, and break even. If we assume that you will have to pay a buyer agent commission, and you almost certainly will, you lose 2-3% to sell your own home, on average. You do all the work yourself, take on all the risk, and spend longer on the market, just to lose money.
As mentioned in the last paragraph, you will have to pay a buyer's agent 3%, if you ever plan on selling your home. Generally, a buyer will want to protect themselves by having representation and won't engage in a deal without them.
Consider that situation. You have little to no experience with real estate transactions, especially as it pertains to the documentation and legal matters. To try and save money you will forego representation and price the home yourself, hoping to get it right, and spend money to market it to attract buyers. Should a buyer become interested, you will then pay their agent to negotiate against you. You'll then have to deal with the ongoing transaction and making sure that everyone involved is doing their job to close on time (not to mention, doing their job right).
We take our job as protector seriously. Every sale can be good for both sides, but mistakes are often made and you need someone on your side diligently ensuring those mistakes get corrected.
Contact Us if you’re ready to talk about marketing and selling your home!