Pros and Cons of Selling Your Home on Your Own

FSBO (pronounced fizzbo) is real estate lingo for For Sale by Owner, and it’s a term that you’ve probably heard before.

Most people who seek to sell their home without a real estate agent do so because they want to save on 6-7% of the closing sale, which is usually the amount divided equally between the buying and selling agents and can amount to a considerable chunk of change!

However, sometimes the extra money saved by going the FSBO route is simply not worth the extra stress and insecurity for a first-time home seller. In this article, we will help you determine if FSBO is right for you by clarifying the following questions:

  1. What do real estate agents actually do in a home sale?

  2. What are the requirements to sell your home without a realtor?

  3. Do the benefits of selling your home without a realtor outweigh the costs?

What Do Real Estate Agents Do?

In other words, why do you pay 6-7% of the final closing price to agents? Here is what real estate agents do to earn their commission:

  1. Make a comparative market analysis (or CMA) to help you determine your property value

  2. List your property on the Multiple Listing Service (or MLS)

  3. Market your home via advertisements, web listings, and fliers

  4. Execute open houses and events to showcase your property

  5. Represent you during negotiations and closing

So the next logical questions are:

It is possible to carry out realtor duties on my own? and Is it really worth it?

Yes, it is possible to carry out real estate duties on your own, but you must consider the intangible value of the resources and expertise that comes with the realtor. Agents make the process of buying and selling much less stressful. When weighing your options, don’t forget to include the price of your own peace of mind in their commission!

Still hesitant about using an agent? Keep reading below to discover the steps of how to sell a property without an agent so you can decide for yourself if it is worth your time and effort!

How Do I Sell My Own Home Without a Realtor?

In this section, we detail how you would carry out the duties of a real estate agent on your own.

1. Find an Accurate Price Point for Your Home

This is a lot harder than it seems. An accurate price point can make or break your FSBO experience. Homeowners tend to overvalue their own properties, only realizing they’ve done so after months go by with no offers.

Real estate agents will look at comps (or comparable properties) to determine the actual value of your property. This can be tricky because even two properties in the same neighborhood can have different values. Make sure to objectively consider market conditions, financing conditions, locational comparability, physical dimensions, and features of your home. Click here to learn more about comparative market analyses!

Your best bet may be to hire a certified appraiser to do this part.

2. List Your House on MLS Without a Realtor by Paying a Flat Fee

The Multiple Listing Service (MLS) is the most comprehensive listing of properties in the U.S. Usually, your agent would do this for you, but for a flat fee of a few hundred dollars, you can list it on your own.

Your prospective buyer’s agent will most likely be searching for your property through the MLS. Click here to learn more about flat fee MLS!