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Should you consider listing your home as FSBO?

On Behalf of | May 23, 2024 | Real Estate

If you are thinking about putting your house up for sale, one of the first decisions that you must make is whether to list your property with a real estate agent or as a For Sale by Owner (FSBO) transaction. 

While an FSBO approach can offer potential savings on commission fees, it can also be a challenging undertaking. As such, it’s important to weigh the pros and cons of this approach carefully before moving forward either way. 

Potential savings and greater control over the process

One of the primary reasons homeowners consider an FSBO approach is the ability to save on real estate agent commissions. By selling your home yourself, you can avoid paying a listing agent’s commission, potentially saving thousands of dollars. 

An FSBO approach also gives you complete control over the sales process. You will get to set the price, schedule showings, negotiate directly with buyers and make all the decisions. This can be particularly appealing if you have prior experience in real estate or feel confident in your ability to manage the sale. It also means you can be more flexible and responsive to potential buyers’ inquiries and schedules.

Logistical challenges

One of the biggest challenges of an FSBO approach is effective marketing. Real estate agents generally have access to professional networks and marketing tools that can significantly increase a home’s visibility. As an FSBO seller, you’ll need to rely on online listings, social media yard signs, and other personal marketing efforts to attract buyers. This can be time-consuming and may not reach as broad an audience as an agent’s marketing strategy would.

Additionally, it can be difficult to accurately price your home without assistance. Real estate agents are generally able to engage in sophisticated comparative market analyses (CMAs) to set competitive prices. As an FSBO seller, you’ll need to do your own research to determine the right price. Overpricing can deter potential buyers — while underpricing can result in lost equity. Free online valuation tools can help, but they may not be as precise as an agent’s expertise.

Moving forward

There is no right or wrong answer to the question of whether you should list your home as FSBO. Yet, either way, seeking personalized legal guidance can help you to better ensure that your rights and interests are protected as you seek to make a sale.