The FSBO vs. Real Estate Agent Question

Many homeowners are perplexed by the question of whether they should sell their home without an agent, known as a FSBO seller, or with an agent. In truth, this isn’t really the critical question it seems.

A FSBO seller is a person who is interested in moving their property themselves, to wit, without a real estate agent. “FSBO” stands for “for sale by owner.” Why would someone want to do this? Well, there are a couple of reasons. The primary one is they do not have to pay the 6 percent real estate agent commission. The saving, for example, on the sale of a $400,000 home would be $24,000, which is nothing to sneeze about.

The second reason many homeowners are considering selling FSBO is the internet. Simply put, the web has revolutionized the world of real estate. Over 70 percent of homebuyers develop their initial list of homes to look at from websites, not MLS. In truth, many of these websites include MLS, but you get the idea. You can pay a small fee and get listed online in front of the buyers in your area. Given this, why would you need to retain a real estate agent, much less pay their fees?

As always, there are two sides of the story. There are definite benefits to having a real estate agent. First, they know the market which can help you avoid snafus. Second, they handle a lot of the grunt work such as hanging signs and such. Third, they networks with other agents, which might produce a lead for your home. Fourth, they tend to have more experience than the homeowner.

Given the benefits of both FSBO selling and an agent, which one do you choose? Well, this really isn’t the correct question. You do not have to choose one and forever forgo the other. This is not like getting married where you can only have one spouse for the rest of your life.

If you are at all interested in the FSBO approach, you should try it first. If you sell your home, great! You just saved tens of thousands of dollars in commissions. If you don’t move it in a reasonable amount of time or are overwhelmed with the process, no problem. You can just go out and find an agent.

By taking this approach, you can see how the decision to go FSBO or agent is not nearly as critical as it seems. Now, get out there and sell.

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Source by Raynor James