3.6 min read
Is For Sale by Owner Worth It?
You want to sell your home but are not interested in paying the cost of commission to a seller’s agent. Do you feel you could save money if you sell the home yourself and think you can take care of all the job requirements usually done by a realtor and ask the question if for sale by the owner is worth it?
Or maybe you are coming at this from the other side; you have found the perfect home in your price range and in the right neighborhood. But then you discover it’s an FSBO, and now you are starting to question whether you should go through with it. Do you want to proceed but aren’t sure if it’s worth it?
No matter which position you are in, it’s essential to do your research. To help you along the way, we’ve outlined a little perspective for you from both sides.
From the Seller’s Perspective
Saving on Commission Fees
A home that is FSBO is when the owner decides to sell their home without the use of a realtor. In this way, they can save money on the commission fees they would normally pay an agent. This can work to their advantage if they post their home at a price point that attracts interested buyers.
Paperwork and Legwork
While they may be saving by not paying the commission fee of a seller’s agent, they are now responsible for all the legwork that can come with selling a home. From having to post their home in the
local newspaper to show it off to prospective buyers.
Further, they will be responsible for drawing up the paperwork and dealing with potential price negotiations. Unless they have the savvy know-how with contracts, this part can become more challenging, and they may want to find some help.
A Longer Wait
Without the expertise of a seller’s agent, the owner may run into some difficulties when selecting a price to post as the purchase cost of their home. Sometimes, they believe their house is worth more than it is.
At other times, they have difficulty negotiating with potential buyers because they don’t want to drop below their asking price. This causes the house to be listed for long periods and can drag out the timeline of selling the home.
From the Buyer’s Perspective
While for the seller, this is a bonus, for the buyer, it means that they may have to negotiate how their agent’s fees will be paid. While sometimes the seller will agree to cover this cost, other times, the price will need to be negotiated in the agreed home purchase price. Either way, the potential buyer is looking at some extra negotiations.
Less Expensive Purchase
Sometimes, there is a hidden reason why a homeowner chooses to sell their home FSBO, which may be because they need the money. In this instance, they are more willing to negotiate the cost of their home, and you could get a great deal.
Added Cost of Repairs
Typically, the seller’s agent is responsible for ensuring the seller is upfront with required home repairs. When there is no agent, the buyer needs to pay extra attention that the home they want isn’t
going to leave them in the poor house with endless undisclosed repairs.
What works for some owners and sellers may not work for others. Their best bet is to research and know what they are getting into. That said, if both parties go into the house sale responsibly and honestly, it is possible that buying or selling a home as an FSBO home can be worth it.