FSBO Problems

Although some for sale by owner (FSBO) sellers think they can maximize their profit by cutting out real estate agents and their commissions, historic data suggests homes sold by realtors still net greater profits for homeowners.

There are several reasons why most homeowners sell their home for more with the help of a Realtor:

• Skilled and experienced real estate agents employ effective marketing strategies
• A Realtor can provide advice on staging or low-cost home improvements to enhance the appearance of your home
• Real estate agents can assist with professional photography to ensure your home is presented in the best possible light
• A reputable Realtor who has been in the local real estate industry for many years should have a network of buyer’s agents who can bring active and qualified homebuyers to your home for sale 

Current Data on FSBO Versus Real Estate Agent Home Sale Price

According to 2023 data from the National Association of Realtors®, the national average FSBO home sale price was $310,000, while the average real estate agent sale price was $405,000. The typical commission is between five and six percent (split between the buyer’s and seller’s agent). Assuming the NAR data is accurate, the commission for the average home sold by an agent would be approximately $24,300, meaning the average homeowner would receive $380,700 from the sale of their home. That’s still almost 23 percent higher than the average FSBO sale price.

There can potentially be many reasons for this disparity, some of which might artificially deflate the national average FSBO sale price. For example, a homeowner might want to sell their property to a family member at a discounted price, or they might sell to cash for home buyers, real estate investors or flippers at a steep discount without ever speaking with a real estate agent due to a property’s state of disrepair or location.

Variables aside, it makes logical sense that homes sold by owners without the assistance of a real estate agent will, on average, sell more slowly and for less.

Why Professional Realtors Tend to Get Much Higher Home Sale Prices

Long-time local real estate agents have a network of other real estate professionals they can leverage to get the home found by many qualified buyers. This allows Realtors to not only drive interest in a client’s home but also has the potential to lead to bidding wars among many different motivated home shoppers.

The Costs of FSBO Sales

FSBO sales are also not entirely free. Homeowners may still need to pay a brokerage or independent agent to list their home on the MLS to ensure it can be found by local home shoppers. If they don’t get their home listed, it could stay on the market for months or even years. The lack of interest from qualified buyers might cause the FSBO seller to drop their price in an attempt to attract buyers.

Handling the Technical Aspects of a Home Sale

They will also need to handle a lot of tasks agents normally perform on behalf of home sellers, like working directly with the title company and escrow agent, filling out paperwork correctly and dealing with any issues that arise during the closing process. FSBO sellers should consider the opportunity cost of the time they are forced to spend learning about the home selling and closing process and fulfilling all the necessary requirements that a real estate agent would normally handle.

Professional-Grade Negotiation Skills

A successful real estate agent will have expert negotiating skills, which can be vital for closing deals favorable for owners.

For example, a potential buyer may want the FSBO seller to knock $10,000 off the asking price because the roof is older and will need to be replaced soon. An FSBO owner who is relieved to find any interested buyer might be willing to drop their price to finalize their sale.

A real estate agent might not budge on the price because they know they have several more interested buyers lined up who won’t ask for a discount.

The Importance of Marketing Experience and a Real Estate Network

Many of the reasons why homeowners benefit from working with a real estate agent rather than taking the FSBO approach boils down to marketing experience and the value of a real estate network. These are two professional assets FSBO sellers typically lack, and they can both play a major role in the eventual sale price of a home.

The value a real estate professional provides will vary depending on their experience and skills. Not every real estate agent is equal in regard to their network or marketing experience.

Get Help From Real Estate Agents With a Proven Record of Success

At 72SOLD, our real estate professionals employ a proven strategy that gets our clients purchase offers that are higher than the median sales price in their MLS more quickly than other agents or home selling methods. We even have independent third-party study data to back it up.

If you want to find out our recommended price for your home or speak with an experienced local real estate professional today, call us at 844-990-7272.