As a homeowner, you have multiple options at your disposal when selling your home. But one of the biggest debates is whether or not to use a real estate agent.
With the many benefits of working with an agent, why would a seller choose to go it alone?
Below, we give you a low down on the benefits of selling your home on your own.
#1: Selling has become easier
In the past, getting potential buyers was a real challenge because;
- Communication was difficult.
- Setting prices was a hassle because of scarce data
- Inadequate information on the processes of selling your home.
Luckily, all these three challenges have been partly solved by the inception of the internet. How?
- Online listing services have grown leaps and bounds with the arrival of social media means communication is now very easy. Today, selling your home begins with posting an ad on Facebook, Twitter, Instagram, etc.
- When pricing a house, the most important data are recent sales of similar properties in your area. In the past, finding such data was nearly impossible. And that’s where agents earned their money. But the internet makes price comparison a breeze.
- Thanks to the internet, homeowners can now quickly learn what it takes to sell a home. You can pull out detailed guides from the internet and even engage experts on industry forums to learn quick tips on how to sell your home.
#2: Listing FSBO property on MLSs is effortless
The other reason FSBO has gained momentum in the recent past is the opening up of Multiple Listing Services (MLS) to owner sellers. In the past, it was impossible to directly list a FSBO property on a Multiple Listing Service. But this has changed and FSBOs can now list on most MLS websites, sometimes free of charge!
In the past, MLS listings were exclusive to agents. No one else was allowed to subscribe to the services. This made it very difficult for FSBO sellers to meet buyer agents. The solution was to pay an agent to list your property on the MLS.
#3: Having complete control over the process
Selling your home is a process and although agents understand the process better, that’s usually not enough to guarantee they will handle it better. Industry reports indicate otherwise – agents sometimes only work for the commission, not for the seller. This is another reason FSBO might be a more attractive option.
Setting the price and negotiation are especially crucial in closing a deal. As a homeowner, you know your property better than agents which can speed up negotiations.
When showcasing your home during an open house, you can explain everything pretty well. And when a price is finally agreed upon, there won’t be a back and forth between agents to further drag the process.
#4: Growing acceptance of the process
Not too many years ago, many people would have been wary of a home with an FSBO sign in the front yard.
Even potential buyers themselves would overlook FSBO properties assuming that the seller was either not serious or was hiding something. There is still this feeling in some marketers but not so much. As more FSBO sales are made, people finally realize that it’s just one of the many ways of selling a home.
You could even argue that an entire support industry is being created for FSBO. For example, currently, some companies are selling what are known as FSBO Kits. In the kit, you’ll find legal forms, detailed guides, and other FSBO documents complete with instructions on how to fill the forms and where to file them.
Realtors have not been left behind. The opening up of MLS services for FSBO is an excellent example. It shows that the industry is finally recognizing FSBOs and is willing to support the sellers.
#5: No agent fees
You would have expected this to be at the top of the list, but we decided to end with it. When you sell through an agent, you must pay that agent. The typical range is 4% to 6% of the selling price though some may demand up to 7% of the sale. A quick calculation reveals that depending on how much you’re selling for and how much equity you have in the home, that commission could cost you a lot.
What’s more, you’d think that after paying them so much money, the agent might shoulder some of the costs such as creating online ads and printing open house brochures. But no. You still have to pay for all that. If by some luck they pay for it during the sale, at closing, you’ll be obligated to refund them to the last cent.
So, as you can see, selling your home on your own might not have been very popular in the past. But there were good reasons for that. Today, FSBO is just as attractive as selling via an agent, because it comes with plenty of benefits!