The pros and cons of selling your home yourself

It’s pronounced “fiz-bo,” but it’s spelled FSBO. It, of course, means “for sale by owner.” And it’s a pretty important acronym to ponder if you are thinking about selling your home anytime soon. That’s because only about 10 percent of all home sales are FSBOs, according to the National Association of Realtors. Which means the vast majority of residential real estate transactions are completed with the help of a real estate agent or broker. The experts say FSBOs are relatively rare for good reasons. “You, the owner of the property, must take on the responsibility of pricing, staging, photographing, marketing and showing the property as well as negotiating with potential buyers,” says Tyler Forte, founder/ CEO of Felix Holmes. “A good candidate for selling their home themselves would be someone who has the time and availability to dedicate to selling a home, and has perhaps some experience in marketing, advertising and previous real estate transactions along with experience handling negotiations.” It’s a safe bet to assume that, among the 10 percent of transactions completed as FSBOs, many of these homeowners don’t fit all of these criteria but choose to go it alone anyway. A big reason is the money it can save; 5 percent to 7 percent that would be otherwise spent on commissions to the agents involved. “When you sell your home yourself, the advantage is that you have complete and intimate knowledge of the home. Also, you can use the funds you would otherwise spend on commissions to market your home more aggressively or make necessary repairs or improvements to make it more saleable,” Kristen Conti, broker/owner of Peacock Premier Properties in Englewood, Florida, says.

Additionally, you have total control over whom you show your property to. You call the shots and schedule the open houses and private showings directly. “You can even sell creatively and make more money than just selling outright. I see owners now becoming the bank and having buyers finance directly from them at 3 percent to 5 percent interest, avoiding outside banks entirely,” explains Ryan Hawker, CEO and founder of H3 Homebuyers in Xenia, Ohio. However, there are several risks involved with lacking agent representation. “You may choose a list price that is too high for your market. You may not understand all the contingencies in a buyer’s offer. You may not get the desired distribution of your listing on the MLS. And most importantly, you may not be legally protected if something goes wrong,” cautions Forte. Indeed, owners often lack a good understanding of local market conditions. “Just because a house in your neighborhood sold for $400,000 doesn’t mean yours will. Market factors change quickly, and updates on homes make a huge difference when determining a property’s value,” adds Hawker. Additionally, market exposure is lost when the Realtor community is cut out. “Instead of having people from all over the area who are represented by Realtors seeing your home, you are limited to whom you can reach through your own e orts,” Conti says. Perhaps most alarmingly, the average FSBO home sells for less than agent-represented listings. Per the National Association of Realtors, in 2021 the typical FSBO property sold for $225,000 versus $330,000 when an agent was involved. If you are still determined to sell your home solo, take the necessary steps that will better ensure success. “Research homes in your area. See what’s going on in your local market. Go to open houses and check out the inventory and look on the internet for information about your local market,” recommends Jessica Lane, a licensed real estate advisor and founding member with Serhant Connecticut in Greenwich, Connecticut. “Also, carefully prepare your home for sale by making necessary improvements, decluttering and staging the home properly. Prepare to take goodquality photos and videos that showcase your home effectively. And use whatever resources you have to get your home online and in front of his many buyers as possible.” That means marketing your property on sites like Facebook, Zillow and FSBO.com. To price your home properly, consider paying for a professional appraisal. You can use tools like Zillow, but keep in mind that they may not reflect accurate area prices. “In addition, be available for calls and texts at all times to show your property, and respond punctually to these prospective buyers,” adds Hawker. Lastly, strongly consider hiring a real estate attorney to review the transaction and provide advice before closing on your FSBO sale.