A FSBO listing (pronounced fis-bow) is a property that is listed for sale by the owner without the help of a real estate agent. For sale by owner homes come with a unique set of challenges and considerations that you should take into account before deciding to list your home without the help of a real estate agent.
Are you considering listing your home as a FSBO? This article discusses some of the reasons why you may consider doing a FSBO listing and also some of the reasons why FSBO listings may not be worth it.
Reasons to do a FSBO listing
For sale by owner homes are a hot topic of debate among the real estate community. Some homeowners believe that it’s a great option, while the vast majority of people believe that you need a qualified real estate agent if you want to sell your home for top dollar.
Regardless of your stance on FSBOs, there are several reasons why homeowners choose to go the FSBO route, including:
- To save money. FSBO listings allow the homeowner to save on the real estate agent’s 3 to 5 percent commission. Those listing and selling expensive houses can save thousands on the fees that are normally paid to their real estate agent for brokering the transaction. Saving money is the most common reason why people decide to choose a FSBO listing.
- To have more control. Some sellers want more control over their listing and how the sales process works. For example, a seller may want to market the home in a different way than what the real estate agent has in mind. Controlling the process allows you to decide on all the details of selling your home including the listing description, photos, and how quickly you want to close.
Why FSBO listings aren’t worth it
While FSBO listings have some benefits that make them seem attractive, the bottom line is that FSBO listings are a disaster waiting to happen. The chances you have a smooth real estate transaction and get top dollar for your home are very slim. In fact, studies have repeatedly shown that FSBO listings sell for less than homes listed with a real estate agent. Here are some more reasons why FSBO listings aren’t worth it:
- Your time. Time is the most valuable asset we have. Giving something your time means you’re giving up something that you’ll never get back. Unfortunately, FSBO listings may take up a lot of time that could be spent doing other things like acquiring rental properties or building your business. Selling a FSBO home can take months and require a lot of time and effort on your part.
- Negotiations. Negotiations are an important part of real estate. Without negotiations, it would be hard for buyers and sellers to agree on a sale price and terms for the deal. Having a real estate agent on your side to help navigate the negotiation process can come in handy and allow you to get more for your home than if you listed the home as a FSBO listing.
Are you still curious whether or not a FSBO listing is worth it? FSBO listings may seem attractive when you’re saving thousands of dollars in real estate commissions. However, those that choose to list their home as a FSBO get less for their home and it takes longer for the home to sell.
For more information on how to get a cash offer for your home in 24 hours, visit Capable Home Buyers to sell your home fast and for top dollar in the Chesapeake area.