Selling your home without a realtor is a huge task. Before deciding if you want to be an FSBO seller (for sale by owner), you should weigh your options to prepare yourself for the responsibility. Here are some pros and cons to help you decide.
Pros
You Can Save Money on the Realtor’s Commission
By selling a house without a realtor you can save the money you’re going to pay as an agent’s commission. However, you’ll still have to pay the commission for the buyer’s agent, if the buyer has hired one.
You’ll Have Better Control During the Process
As an FSBO seller, you won’t have a deal with the differing opinions of the real estate agent. You’ll have full confidence over the process as you can dictate the terms and the time you spend in the process.
Your House Will Sell Faster
According to a report by the National Association of Realtors, 77% of FSBO homes sell within 2 weeks of getting listed. They sell fast because FSBO sellers often sell their homes to people they already know.
Cons
You’ll Have to Pay Commission to the Buyer’s Agent
According to the 2019 Home Buyers and Sellers Generational Trends Report by the NAR, approximately 89% of the home buyers hired an agent to help them with the purchase. Therefore, as an FSBO seller, you’ll have to pay a 3% commission to the buyer’s agent, even if you don’t hire one for yourself.
You May Over or Underprice Your Property
Pricing a property is tough when you don’t have experience with the real estate market. You may end up being clueless about the fair market value. While overpricing can lead your house to stay in the market for longer, underpricing will dimmish your profits.
FSBO Houses Sell for Less
According to the NAR, the average sale price of an FSBO property was $200,000 while the average sale price of an agent sold property was $280,000. Therefore, after deducting the agent’s commission, non-FSBO sellers can still make $63,000 to $71,000 more than FSBO sellers.
FSBO Sellers Can Negotiate Well
Once an FSBO listing gets an offer, the seller should negotiate the terms and price of the property to make sure that the deal is profitable to them. Negotiations require the sellers to determine the home’s worth precisely so that they know what contingent offers are best to accept.
Sell Easily with Re-Vest Investments
Once you’ve decided to sell, Re-vest Investments can help if you need to sell the house fast in Texas. We make the process of house sales fast and easy for homeowners and help you cast out your property with the best offer.
At Re-vest Investments, we buy houses in Texas and are the first choice for homeowners who want the Highest and Best Cash Offer of House. So, get in touch with us now to get started in Houston or Katy, TX!
