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Should You Use A Real Estate Agent or Sell Your Own Home?

Mar 12, 2021

What is FSBO?

FSBO (For Sale By Owner) is the process of listing and marketing your own home for sale. You would eliminate the commission of the listing agent from the transaction and do this work yourself. By doing so, you would need to:  

  • Market your own home
  • Negotiate the deal
  • Organize and sign the purchase agreement  

 

Benefits of Selling Your Own Home

While there are plenty of great reasons to use an agent, FSBO works well for some families.  

 

Reduced Commission

The most common reason families decide to FSBO their home is to cut the commissions paid from the listing agent. These generally make up 3% of the home's sale price and can be too much to stomach for families selling their home.  

 

Greater Control of the Process

When you use an agent, they will tell you the price to list the home and when/if to drop the price. As FSBO, you get complete control over the entire process.  

Benefits of Using an Agent

Most families will end up choosing to work with a Realtor® due to the benefits they provide. If you are willing to part ways with the listing fee because you see the value of having someone do the work for you, then using an agent will be right for you!  

 

Listing a Home is a Full-Time Job

Unless you have a spare 40 hours a week laying around, then selling your home yourself may be a bad idea. When you sell your own home, you will have to:  

  • List the house for sale
  • Market it yourself
  • Schedule showings
  • Negotiate with buyer's agents
  • Weed out unqualified buyers

 

Marketing Fees

Real estate agents spend part of their commission on marketing your home. This can include:

  • Listing it on the MLS (their exclusive listing platform)
  • Putting it in magazines
  • Hosting open houses
  • Promoting it through their lender partners

 

If you are not comfortable doing this marketing and spending money upfront in hopes your home sells, then you will want to use an agent.  

 

Risk Exposure

Real Estate Agents are qualified to write purchase agreements with buyers. Writing these agreements on your own without the help of licensed professional leaves you open to risk. If you are not well-versed in real estate law and contracts, you could potentially lose thousands of dollars or be charged with fraud. Using an agent allows you to sleep well at night, knowing you are safe.   

If you would like help finding the right agent in our referral partner network or want to talk about the financing on your next home, click here. We can help connect you with a local market expert and start working on pre-approving you for your next home today.

 


#wegetitdone, #diamondresidential, #strongertogether, #fsbo