Miranda Crace6-minute read
UPDATED: March 17, 2023
Although exciting, selling your home can become complicated when it comes to the selling process and the real estate market. Before you start selling your home, you’ll need to figure out if you’ll be going through a real estate agent or selling it yourself, which is called for sale by owner (FSBO).
FSBO can help you save on commission costs and give you full control over the selling process – however, in many cases, hiring a real estate agent may outweigh the benefits of FSBO. Keep reading to learn more about the differences between for sale by owner vs. realtor.
For sale by owner (FSBO) is when a homeowner lists a home for sale themselves, rather than using a real estate agent. If you choose to go the FSBO route when selling your home, you would be responsible for the entire process, including:
Many homeowners will choose this route to avoid the heavy fees and commission costs associated with professional real estate agents. However, real estate agents do have expertise and experience under their belt, so on the flip side, you have fewer responsibilities when you work with them.
FSBO may be a good fit for you if you are well versed in the real estate industry or if you have someone in mind who’s looking to buy. If so, you don’t need to set aside extra time for listing and marketing your home which could lead to a quicker deal.
Whether you choose for sale by owner or a realtor, there’s a lot going on when selling a home. Read on to explore the advantages and disadvantages of for sale by owner vs. realtor.
There are several benefits of for sale by owner, including:
Although you save on agent commission by going for sale by owner, there are some disadvantages to be aware of, such as:
Benefits of hiring a real estate agent over FSBO include:
Although real estate agents make your job easier when it comes to selling a home, there are still a few factors to consider before hiring one, such as:
Hiring a real estate agent can be more time-efficient and less stressful than selling FSBO. Here are five reasons why you should hire a real estate agent instead of going the for sale by owner route.
There are many legalities involved in selling a home, such as seller’s disclosures and other paperwork. All of this needs to be completed correctly during the selling process, and if you’re inexperienced, your chances of error are higher.
For example, if the seller’s disclosure isn’t properly filled out, you, as the FSBO seller, can be held liable for things like breach of contract, negligence and fraud.
A real estate agent is likely to know a lot more about these laws and regulations than the typical person, so the legal risks decrease.
With a real estate agent’s experience, they can better help filter out unqualified buyers and narrow down your options, which can help speed up the buying process. Real estate agents are trained to ask strong qualifying questions and determine the motivation of a buyer, which better gauges how serious they are about the buying process.
This can save you a lot of time and hassle versus if you were to try and determine this yourself through FSBO.
Above all, hiring a real estate agent will save you time and energy. They’re skilled and trained to handle every step of the real estate process, which can ease stress and save time on your end.
The average home buyer usually doesn’t have sales or specialized experience in negotiating home sales. Luckily, real estate agents are trained in this area and can take care of this for you if you’re buying a home.
Having a real estate agent make the negotiations for you can take away a lot of potential stress – they’re also able to take emotions out of the equation. Selling your home can be an emotional process, and if you were to go the FSBO route and do it yourself, then you risk making a poor decision stemming from emotions.
Additionally, real estate agents are more experienced with the details of closing a home, such as closing costs and transfer taxes.
Selling your home with a real estate agent will likely get you a higher price than if you were to sell it by FSBO. Homes that are sold with a real estate agent typically close at a higher price than homes that are sold by the owner.
The decision of for sale by owner vs. realtor is up to you and your experience. If you’re experienced enough, have time for the process or already know someone who wants to buy your home (such as a friend or family member), then FSBO may be right for you.
Keep in mind that a real estate agent can save you time and headaches, as well as provide the knowledge you need to get your home sold. No matter how you choose to sell, always make sure you have a professional check over the legal paperwork.
If you’re selling and looking to purchase a new home, learn how much home you can afford given today’s mortgage rates.
Viewing 1 - 3 of 3
If you’re in the midst of a For Sale By Owner (FSBO) real estate transaction, you might wonder how closing costs will work without an agent. Learn more here.
Selling a home without a REALTOR®️ has some perks, but it also means you’ll handle the paperwork on your own. Get all your documents in order with our help.