Here are some myths and facts about the for-sale-by-owner market to better prepare you for what you can expect when selling your home without a Realtor:
Myth #1. Selling your home for sale by owner (FSBO) will save you money
FACT: In reality, FSBO sellers put themselves at risk of losing money. This could happen in many ways. For example, FSBO sellers may price their home too high, meaning it can take months to receive an offer or not receive an offer at all. They could also price their home too low and lose money.
In 2021, The National Association of Realtors (NAR) found that FSBO homes sold for an average of 26% less than agented homes (median of $217,000 vs $295,0000).
Myth #2. Online resources are better at pricing my home than a Realtor
FACT: There are many online resources that can be used to estimate the value of your home, but they are not all accurate. The valuations are often based on algorithms, and algorithms are only as accurate as the data they pull from.
Although the data may be correct, the resources don’t share the same knowledge as local realtors who know their local markets, what buyers are looking for, and how much buyers are willing to pay for certain features on a home.
These resources are useful for understanding the market, but it’s always a good idea to discuss further with a professional.
Myth #3. Homebuyers would rather work directly with the seller
FACT: A majority of homebuyers have an agent whom they have interviewed and chosen to look out for their best interest throughout the home-buying process. Homebuyers are educated to withhold confidential information from the seller or seller’s agent to prevent sharing any information that can be used in the best interest of the seller.
Myth #4. I know my home so I’m best at selling it
There’s more to selling a home than listing it on the MLS and taking photos. Local Realtors are required to be educated in not only national real estate law, but also their local state real estate law and, are required to take upwards of nearly 200 hours of course material and testing before becoming licensed in their designated state(s).
Most realtors are required to take continuing education courses annually or biennially to maintain their licenses. You will also find that many realtors take additional certification courses to increase their skills, knowledge, and proficiency in various real estate sectors to better support buyers and sellers throughout their real estate transactions.
Selling a home is a lot harder than you think, no two transactions are ever the same. You may know your home, but you may not know the best way to sell it.
Myth #5. It’s easier to sell FSBO than with an agent
Home sellers underestimate the amount of time it takes to sell a home. It may take from 30 to 60 hours or more from start to finish to sell a home. FSBO must commit to the process to sell a home. They must:
- Market the home
- Take phone calls
- Answer questions
- Schedule and manage showings
- Negotiate offers