Selling a home can be challenging, which is why about 89% of sellers hire a real estate agent to help. Although real estate agents make selling homes easier, they also charge a commission, cutting the sale proceeds.
Even though it takes more effort, about 7% of people sell their homes without an agent. This is known as “For Sale by Owner,” or FSBO. Below, explore the meaning of FSBO listing and discuss how to sell a house without a realtor.
What Does FSBO and FSBO Listing Mean?
FSBO means “For Sale by Owner.” This means you want to sell your house yourself without the help of a realtor. Selling your home through FSBO means you will take on tasks that an agent usually does. This includes setting prices, listing, and inspections.
An FSBO listing is when a homeowner lists their home without using a real estate agent. FSBO listing differs from how a real estate agent usually lists a house.
Only agents can list homes on Multiple Listing Services (MLS), which is like a big database where real estate agents list homes for sale. When your home is on the MLS, more people can see it, which means more potential buyers.
Homes listed on the MLS are often posted on popular websites like Zillow and Redfin. However, the problem is that 89% of homebuyers work with agents to buy a home. Also, almost everyone uses the Internet to search for homes. So, if your home is not on the MLS, many buyers might not even know it is for sale.
Even though FSBO sellers cannot use the MLS directly, other ways exist to list homes. If you want to sell your property without an agent, you can use websites like ForSaleByOwner.com or FSBO.com. On these websites, you can pay a fee to have your home listed online for a year.
Some of these sites might even share your listing on real estate websites like Redfin. Another option is to hire a flat-fee real estate broker, who can list your home on the MLS for about $400.
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Why You Should Sell Your Home Without a Realtor
There are pros and cons of selling a house without a realtor. The following are a few advantages:
- To Save Money: When you sell a house through a real estate agent, you usually have to pay them a commission. This agent’s commission is about 5% to 6% of the house’s price. For instance, if you sell your home for $400,000, the commission for the agents could be between $20,000 and $24,000, and in most cases, the seller is usually the one paying this fee. The commission is usually divided between the seller’s and buyer’s agents. You can save about half of this money if you want to sell your house without using a realtor. You might save about $10,000 – $12,000. This is because you might still need to pay the buyer’s agent.
- If You Are Selling to Someone You Know: Another reason why you might not want to use a realtor is if you want to sell your house to someone you already know. If you sell to a friend or family member, you might not need an agent because you can handle the sale directly.
- If You Are Selling a Property in a Rural Area: Most people selling homes in rural areas often decide not to use realtors. Few real estate agents are available in the countryside, and people there are more willing to look at FSBO listings.
Disadvantages of Selling Your House Without a Realtor
The following are the cons of selling your house without a real estate agent:
- Homes Sold by Their Owners Are Usually Sold for Lesser Amounts: In 2023, the average price of a home sold by its owner was $310,000, while the average home sold with the help of a real estate agent was $405,000. This price difference occurs because FSBO homes don’t always reach as many potential buyers as the homes’ realtors list. Because they are not on the MLS, homeowners might not know how to set the right house price or negotiate with buyers. Also, FSBO homes are usually found in rural areas, where house prices are generally lower.
- Selling FSBO Homes Is Time-Consuming: Selling your house independently takes a lot of time. You will have to do everything yourself, and all the tasks involved can be overwhelming, especially if you want to sell it as soon as possible.
- Negotiations: When selling without an agent, you must negotiate with buyers on your own. Real estate agents have extensive experience negotiating and know how to handle tough situations. If you want to sell your house and are not used to negotiating, you might accept a bad deal and lose money.
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How To Sell Your House Without a Realtor: A 10-Step Guide
To sell your house without a real estate agent, you will need to take the following steps:
- Set the Right Price: Check the prices of similar houses in your area and ensure that you do not set a price that is too low or too high.
- Get Your Home Ready: Spend time and money on making your house look appealing to attract more buyers.
- Take Quality Pictures: You can consider hiring a professional photographer to take pictures that will show off your home.
- Write an Engaging Property Description: When you list your home online, highlight its best features to attract more buyers.
- List Your Home: You can list your home on FSBO websites or by paying to get it on the MLS.
- Advertise Your Home: Spread the word about your home being for sale. You can also post notices around town and on social media platforms.
- Give a Tour of Your Home: Once people start showing interest, you will need to schedule time for them to visit and see the property they want to buy.
- Review Offers and Negotiate: Compare the offers you get and negotiate on price and the closing dates.
- Prepare Legal Documents: Know what paperwork you need to sell your home without involving a realtor. In most cases, the paperwork you need will depend on where you live, but you must ensure everything is in order.
- Close the Sale: When you reach an agreement, finalize the sale with all the legal documents needed.
Selling your house without a real estate agent can help you save a lot of money. You won’t have to spend on commission fees. However, you should also know that selling your home yourself requires a lot of work and expertise to do it properly.