For Sale By Owner vs Agent

The obvious answer is selling the house yourself – but the savings from avoiding a commission may not make up for the lost sales proceeds resulting from the DIY approach. According to 2022 data from the National Association of Realtors (NAR), For Sale by Owner (FSBO) homes sell for a median of $225,000, while the median home sale price for homes sold with the help of an agent was $345,000. There’s also 72SOLD’s performance data, which includes seven studies demonstrating our method results in median sale prices that are 8.4 to 12 percent higher than other sales in a local MLS.

The simple answer is that FSBO has the fewest costs – making it the “cheapest” – but the money you lose out on by failing to properly market your home can potentially be a much larger sum than the money home sellers save on agent commissions.

The For Sale by Owner Approach

The word “cheap” is not synonymous with “affordable.” Cheap typically has a negative connotation that implies low cost due to low quality. This is, unfortunately, also the case with FSBO homes. Yes, it’s the cheapest, but in the grand scheme of the real estate process, FSBO doesn’t typically result in a better return on investment (ROI).

Pricing Challenges

Without professional valuation, pricing your home appropriately can be difficult. Looking at Zillow and other free resources and extrapolating based on the homes you currently see on the market for your area does not take into account the full picture of the real estate market. Overvaluation is also why many FSBO homes stay on the market for many months while other homes in the area sell in days or weeks.

Pricing is not everything. Generating a sense of urgency and leveraging the scarcity of your home, coupled with appropriate pricing, is why 72SOLD agents typically end up getting their clients higher sale prices in as little as eight days.

Successfully marketing a home and taking the right steps at the right time takes experience and knowledge of not only the market but also the home selling process. Many FSBO home sellers are bright, successful people, but they aren’t experienced real estate professionals who do this for a living. Market knowledge and experience do matter when it comes to selling a home, and it shows in the data.

Marketing Limitations

Reaching potential buyers is more challenging without access to professional networks and listing services. Agents typically have access to multiple listing services (MLS), which is a crucial tool for ensuring broad exposure of the property to a wide array of potential buyers. Since the platform is intended for real estate agents and brokers, you must have a valid real estate license to use the service to list a home.

Real estate professionals who have operated in an area for years or decades will also have established a network of other real estate professionals, allowing them to quickly enhance the reach of their clients. They also properly optimize listings on popular real estate websites, where a majority of homebuyers begin their search.

These resources combined significantly broaden the reach and visibility of a property – an advantage that individual sellers may not easily replicate on their own.

Negotiation and Legalities

Negotiating the sale of a home is a nuanced and often challenging process, especially for those without experience. Real estate agents bring a level of expertise in negotiation tactics, understanding market trends and buyer psychology, which can be crucial in securing the best possible deal.

An error in the legal paperwork or failure to comply with local regulations can also lead to problems for both homebuyers and home sellers. Real estate professionals are familiar with these legalities and ensure that every aspect of the sale is compliant and correctly handled. This expertise provides peace of mind to the seller and safeguards against potential legal pitfalls that might arise in an FSBO sale.

The Value of Professional Real Estate Services

While saving on commission might seem like the cheapest way to sell, this might not always be the case when considering the final sale price of your home. This is where a professional real estate service, like 72SOLD, comes into play:

• Expert Pricing: A knowledgeable team can accurately price your home, often leading to a higher sale price.
• Marketing and Exposure: Professional services offer extensive marketing and exposure, reaching more potential buyers.
• Negotiation Skills: Expert negotiators can often secure a better deal than you might on your own.
• Legal and Procedural Expertise: Professionals handle the legalities and paperwork, ensuring a smooth, compliant transaction.

Sell Your House Quickly While Maximizing the Sale Price With 72SOLD

The cheapest method, selling your home on your own, might not always lead to the best financial outcome. While it saves on immediate costs, the potential lower sale price, delayed timeline and the legal complexities involved can offset these savings.

72SOLD not only alleviates the stress of selling your home but also has a record of success backed up by independent, third-party analysis. Find out why so many home sellers work with 72SOLD.