What “For Sale By Owner” Really Means for Buyers and Sellers

Southwest Ohio Real Estate Podcast with Tami Holmes

Should you sell your home as “For Sale By Owner” or hire a Realtor? Here’s what you should keep in mind.

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Not everyone sees the value in hiring a real estate agent. For some, it’s not easy to realize all the work it takes to prepare a home for sale, list it, market it, and keep the transaction flowing smoothly.

Selling a home is hard work no matter how you do it, but if you’re looking to forego an agent’s expertise and instead list your home as For Sale By Owner (FSBO), there are some things you definitely need to keep in mind. Here are some insights I’d like to share with you from Inman, a reputable real estate site:

1. Buyers may see a FSBO listing as “on sale” rather than “for sale.” Homes with unrepresented sellers sell for 33% less and take significantly longer to sell.

2. Most buyers don’t want the seller present during showings. This makes people less likely to make an offer on a home, but without an agent, who else would show the home but you?

3. Homeowners may not know what is necessary to prepare for a sale. They might overspend when preparing, but an agent will be able to outline which features are more important to buyers.

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There are big advantages to using
a professional agent on your side.

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4. Most buyers have an agent, so a FSBO listing will be at a disadvantage. This means the seller will most likely have to pay the commission rate for the buyer’s agent. On top of this, since the buyer has representation but the seller doesn’t, FSBO sellers are at an immediate disadvantage during negotiation.

5. Realtors can market a home more effectively. In addition to putting your home on the MLS, there are many ways that agents will market your home. They rely on efficient systems based on data and experience, and they use professional photography, websites, and videos to target online and print customers. Expertise is needed to successfully market a home, and the costs add up. But a good agent will absorb these costs. Realtors will also advise you on pricing, depersonalizing the home, paperwork, and legality.

Colby Sambratto, one of the founders of ForSaleByOwner.com, failed to sell his own home as a FSBO listing. He ended up selling it through a Realtor for 7.5% more than he was asking originally. We’re not saying that homeowners can’t successfully sell their own homes—we’re saying there are big advantages to having a professional agent on your side.

If you are looking for an expert agent in your next home sale, have any questions, or need further information, feel free to reach out to us. We look forward to hearing from you soon.