To FSBO, or Not to FSBO?

If you're contemplating selling your home, you have a very important decision to make. You have the option of selling your home on their own or using a realtor. But, it's not always a clear-cut choice. Each method has both advantages and disadvantages that you must carefully consider before you decide which is right for you.

Advantages of selling on your own

For-sale-by-owner, or FSBO, homes are in the minority when it comes to overall market numbers, but they do sell. Many people give this option a try because they want to keep more of their money in their own pocket. The advice that realtors typically give to sellers can be implemented by the sellers themselves. For instance, you can advertise your own home and perform open houses. With a little time and effort, you can also research the market to come up with a fair asking price for your property. Additionally, you can use the money that you would normally give to a realty company to beef up advertising and better prepare your home for sale.

Conversely, most people who decide to sell will find a real estate agent to begin the process. The realty company lists the property on the Multiple Listing Service (MLS) and receives a percentage of the sale price when they find a buyer for it. This money can be saved by selling the home yourself.

Disadvantages of selling your own

Now, let's examine the flip side of the coin. Real estate agents have a wealth of knowledge and resources at their disposal. They also usually have years of experience selling and buying homes. Each property is different and often requires a unique approach; realtors are adept at tailoring their skills to sell any home.

The real estate vernacular can also be tricky to learn. For a novice, it may require a lot of time spent researching the various components of the selling process: real estate contracts, advertising strategies, determining fair market value, price negotiations, etc. Sellers can – and often do – make mistakes when it comes to their home. Some don't get their asking price because they've undervalued the property according to the market. Others don't sell at all because they've overestimated their property's value. And, without knowing the subtleties of negotiations, countless sellers have been taken advantage of by savvy buyers, especially investors. To be sure, when it comes to real estate, what you don't know can hurt you.

Real estate agents often have a wealth of assets to call upon. They've typically built relationships with lenders, appraisers, repair services, other agents, and people in the county records office, allowing them to quickly get valuable information from a reliable source. People who sell their homes themselves are usually not as well-connected into such an extensive network as this.

Realtors are also aware that it's the first few weeks of a home's listing that are the most crucial. A property that's not in prime condition to sell during this time could stay on the market for an extended period. Knowing that, they can set things in motion to sell the home as soon as a suitable buyer is located. They're well equipped to help you to close the deal in as efficient a manner as possible.