How Does Buyer’s Agent Get Paid?
If you're like most people, your home is your most valuable asset. When it comes time to sell your most expensive asset, would you rather leave it all to chance by selling your home for sale by owner (FSBO), or would you rather go with a professional?
According to the National Association of Realtors, 93 percent of homeowners chose to use a professional to sell their home in 2018. That leaves 7 percent of people who chose to save money by selling their home for sale by owner.
However, does for sale by owner save money? Read on to learn some surprising statistics about for sale by owner (FSBO).
Does for Sale by Owner Save Money?
The common misconception is that when you list your home "For Sale By Owner," it leaves to savings, but this isn't always the case. For example, most homeowners believe they'll save money on agent fees, but this is only partially true.
In most cases, the FSBO seller is on the hook to pay the buyer's agent fees. How's that for savings?
Online reports indicate that homeowners in a FSBO deal tend to sell their homes for a lot less than when they sell with a realtor. How much less?
Well, according to the National Association of Realtors, about $25,000 less. That's not savings!
Is Selling Your Home by Owner a Good Idea?
While you may not earn as much selling your home by owner as to when it's agent listed, there are some perks to selling your home by owner. For starters, you're likely to sell your home faster. According to statistics, 77 percent of FSBO homes sell within the first two weeks.
This could be for several reasons:
- The seller may know the buyer
- The seller has sold their home for less than it's worth
- The seller may be passing it on to a friend or family member
If you're in a position where you need to sell your home fast, you may be at an advantage by selling your home for sale by owner. Some other advantages of selling your home by owner are:
- You have control over the process
- You can save on some commission fees (still have to pay the buyer's agent)
- You don't have to worry about dealing with a selling agent
While this may be enough for you to be on board, there are some disadvantages that go along with selling your home for sale by owner. Some drawbacks of selling your home as a FSBO include:
- Spending money to market your home for sale
- Having to schedule open houses and showings
- Having to hear the list of buyer concerns during showings
- Being available for all parts of a sale
Why for Sale by Owner?
The average age of homeowners who list their home for sale by owner is 57 years old. This suggests that some FSBO sales may be part of the process of downsizing or looking for a forever home.
Selling your home for sale by owner may be a better option if you live in a rural area, as many real estate agents may not be available. Additionally, if your home is in rough shape and it doesn't make sense to repair it for sale, selling your home for sale by owner as-is might be your best option.
Lastly, if you believe you can market, stage, and receive the best price for your home, it makes sense to sell your home for sale by owner.
Should I Do for Sale by Owner?
Selling your home for sale by owner is an independent choice that must be made by you. However, if you truly believe you can perform all the duties that a selling agent would take on, it makes sense to sell your home for sale by owner to save the 3% commission fees you would normally pay your agent to sell your home.
In the end, it all comes down to your comfort level to accurately price your home, market it, stage it, and negotiate for the best price. If you can do that, why not sell your home for sale by owner.
What if There Was a New Way to Sell Your Home by Owner?
Selling your home by owner puts the bonus of responsibility on you to sell your home. It also implies that you will work to stage your home, keep it neat and tidy for showings, and negotiate with interested buyers.
Not to mention, you have to deal with marketing your home against other agents in the hope of securing a buyer in often competitive markets. Then there is the added headache of hoping that if you secure a buyer, their loan doesn't fall through.
Once the sale is completed, you're then on the hook to pay the buyer's agent, which takes money out of your pocket, and you may not even have gotten market value for your home.
But, what if there was another way to sell your home by owner without all of these hassles? Fortunately, there is.
The iBuyer Home Experience
Forget about the hassles of marketing your home, staging it for showing, dealing with agents, and worrying about loans falling through. Now you can sell your home with iBuyer and say goodbye to all of the FSBO hassles.
With iBuyer, you can find out the true market value of your home, be matched with iBuyers in your city, and move on your own terms with fast, flexible closing dates.
With iBuyer, there is no more stress over repairs, no need to clean your house for showings and open houses, no marketing that needs to be done to sell your home. You can receive instant cash offers from buyers in your area.
Are You Ready for a New Selling Experience?
With iBuyer, you don't have to ask the question: Does for sale by owner save money? With the iBuyer platform, you can sell your home without the normal FSBO hassles, get good market value, and save money on agent fees.