Selling as a For Sale By Owner (FSBO), meaning that you are selling without the assistance of an agent, is not terribly difficult if the real estate market is moving fast and inventory is not sitting on the market for a long time. Seeing few price reductions also means that homes are being snapped up as soon as they become available for sale. However, for most FSBOs, finding buyers is the greatest challenge. Finding a buyer is only the first step, and there is a lot to do between contract acceptance and closing. But anyone can do this with the right tools.
The majority of Sellers who choose to go FSBO, do so to save the 5 – 6% that is taken by the REALTOR from the sales price of the house once it sells. This makes sense on many levels because the average home owner who sells FSBO will save $15,000. That’s nothing to sneeze at.
Not every seller is a great candidate to sell by owner. However, if the market is right (as it is now), it can make that job a lot easier. The worst that could happen is that you may sell for less than you had wanted or you may encounter difficulty in negotiations.
Remember that not every seller is successful selling as a for sale by owner. For example, The National Association of REALTORS® reports that a large portion of for sale by owner properties end up listing with a Realtor in the end. The main reason for this is because the majority of home owners do not understand how to market their home for the best exposure.
Some Real Estate Agents hold animosity toward FSBOs and refuse to show them if the listing does not offer a buyer’s commission. If the seller has not indicated a buyer’s commission and their client would like to see a property, the agent can help sell the property and get the commission offered by the sellers. Another reason FSBOs fail to sell are because owners lack the expertise to accurately price a home to sell and often fall short on marketing knowledge and negotiation skills.