October 13, 2022

You might have heard of the term “FSBO” before. It simply means selling your property without a realtor – For Sale By the Owner. For some people, using a realtor seems to be a challenging option. And it’s understandable. But there are some pros and cons of going FSBO and before you take a side, weigh the two sides carefully. After all, you are about to make a significant financial decision in your life, and should be a well-informed decision with careful planning. Let’s look at the principal duties of a real estate agent before you forgo representation. It might give you an overview of what you will be giving up and what going FSBO will look like because all the duties under a realtor’s responsibility are now under you. Principle Duties of a Real Estate Agent Setting a Realistic Price: Having a long-term experience with real estate, realtors know the local market better than anyone. And so they can help a seller set up a realistic price. Additionally, they know the stats of recent comps and real estate sales patterns in your area. —> Quick Sales Solutions Preparing the House for Sale: A realtor can quickly identify your property’s negative aspects or issues and fix them accordingly before listing. They also know which discounts will best suit the listing price considering your property’s problems. Staging: Staging a property is not easy and requires a lot of work. A realtor has to go through systematic cleaning, decluttering, maintenance, and renovation of your place before it goes up on the market. Successful Marketing: Through strategic and clever marketing, real estate agents can attract a considerable crowd even before the property hits the market. They have an optimized social media presence and can attract better offers online. Helping with Negotiations: A competent real estate agent has great negotiation skills. Whenever any prospect comes with an offer, a realtor’s expertise in local market sales experience comes in handy. Hence, you will get a quality offer In no time. Usually, hiring a realtor seems to be an easy way out, but some well-organized owners and sellers can also fulfill these duties on their own. The pros and cons of going FSBO are listed below for further assistance. Pros of Going FSBO When selling a property, the overall expenses, and the total cost of the property matter the most. Here are some common advantages of going FSBO that most homeowners often mention. A Cost-efficient Option The biggest reason why homeowners decide to go FSBO is that it is a cost-efficient option. How? Well, it saves you the payment of the listing agent’s commission. When working with a real estate agent, you must pay 5-6% of the property’s selling price on commissions. About 3% of this commission will go to your listing agent, and the other 2-3% will be the buyer’s agent’s commission.  But when you decide to sell without a realtor, you will not be paying this 3% to the listing agent. Then you will only be responsible for the buyer’s agent’s commission. This can significantly reduce the costs you owe when closing the deal. Gives you Complete Control Another main pro of going FSBO for the property owner is that they are the ones in complete control of the whole process. If you are not a first-time home seller, then you must already be aware of how to market your home and set a fair price. Some agents usually rush their clients into accepting offers that they are not quite comfortable with or can be negotiated further. However, by being in authority, you will decide what kind of offer will best suit your needs. Having complete control of your property’s sale sounds cool but there is a lot of effort in the background. You must familiarize yourself with setting a fair listing price and conduct effective marketing to attract good offers. No Fuss in Dealing with Realtors An agent-seller conflict, if triggered, is terrible news for a seller. Now that you are not working with any real estate agent, there will be no clashing in negotiation styles and aesthetic preferences. Often agents are critical of properties in the working-class area and end up making real derogatory comments about your property. This, in turn, affects the selling price from the agent’s perspective and can eventually cause you a financial loss. Utilize your Knowledge of the Property Let’s face it; no agent can know a home better than its owner. And hence you can best use this knowledge to your advantage by highlighting your house’s positive or selling points. Additionally, you can tend to the maintenance of the house in a better way since you know which renovations and repairs need to be taken care of. Homeowners can also educate potential clients better. For example, during open house invites, people ask different questions, and the owner’s personal touch to the answers will indeed create a positive impact. Ultimately, going FSBO can sell your property at a price above the market value if done right. Cons of Going FSBO While selling a property without a realtor has its perks, there are pros and cons of going FSBO. If you are a first-time seller, the disadvantages will outweigh the advantages. You won’t know about your neighborhood’s local real estate market and comps. So, you need to educate yourself a great deal before stepping into the idea of going FSBO. Before making a final decision, compare both the pros and cons of going FSBO. Lack of Experience Becoming a professional broker or realtor requires years of study and experience in different markets. So comparatively, an FSBO seller does not have nearly as much experience. Their range of knowledge, skills, and methods would also be limited. Your lack of understanding can cause you a significant financial loss or might increase your financial or legal liability at some point in your selling process. In competitive markets, a professional realtor can successfully set up a fair market value for your house