For Sale By Owner (FSBO)
Candlefocus EditorOne of the main advantages of selling a property FSBO is that the seller saves money by avoiding paying a real estate agent commission, which is typically 5-6% of the sale price. By taking the duties of the real estate agent, the seller also has greater control over the sales process. The seller is able to set the listing price, set the rules for marketing, negotiate with buyers and receive direct feedback from buyers on the process, which can help to inform decisions about the most profitable way to complete the sale.
The downside to selling a home FSBO is that without the guidance and experience of a real estate agent, the seller runs the risk of being taken advantage of, as well as lacking access to professional resources. For example, an agent can advise the seller on matters such as pricing, market trends, and buyer presentation. Furthermore, buyers may be reluctant to purchase a property FSBO and might be more inclined to make an offer on a property that's listed by an agent.
Although FSBO home sales only make up around 7% of the total market, they are increasingly popular, especially to those keen to save money and asserting greater control over the sales process. However, it's important to understand the potential risks and pitfalls associated with FSBOs before entering into the process. The ultimate decision as to whether or not to go the FSBO route will depend on the seller's unique financial and personal circumstances.