For the uninitiated, FSBO is an acronym for “For Sale by Owner.” It means that the owner is trying to sell a property without the aid of real estate agents. The owner handles everything—from the preparation of the house to the taking of pictures and the posting of the listings or ads. Prospective buyers contact no one else but the owner, and negotiations are directly undertaken only by the seller and buyer.
Advantages of FSBO
When you go online and Google “sell my house fast Miami,” for example, you can easily find several resources to sell your property on your own. Some sites let you post your for-sale ads for free. You just have to provide the information about what you are selling, pictures, and contact details. It’s not a complicated process, and it is indeed doable by almost anyone.
The most critical reason why many would want to do FSBO is to avoid having to pay commissions to the agent. Understandably, owners would want to get the highest amount they can get from a sale. Why share the proceeds of a sale with someone who is not even part of paying for the construction of the house being sold?
Moreover, doing FSBO make for greater control over how the property will be marketed. From the preparation of the images and videos to the setting of the price and the visual inspections, everything will be under the control of the owner. All decisions will be the owner’s call. He or she may even choose not to sell the property to certain people.
Does it make sense?
However, the supposed advantages of FSBO may not apply to everyone. In particular, the expected higher net proceeds from the sales might not come to fruition. Data from the National Association of Realtors revealed that the average price of homes sold with the help of agents is higher compared to the average price sold under FSBO. For 2018, the numbers were $249,000 and $190,000 respectively. That’s a massive difference of $59,000 or around 30% more than what FSBO sellers get.
Real estate agents do more than helping owners find buyers. They can help in setting the optimum price. They have the know-how and experience to assess whether the price is too high or too low. Also, they know more platforms where the property can be sold. They are not limited by a few classifieds sites. They also have their offline contacts and connections to help find buyers faster.
The intention of writing this information here is not to promote or discourage FSBO. The important point is to make everyone realize that there are no situations that demand the choice of one or the other. There’s nothing to stop property owners from doing their own marketing while working with the company’s team. It’s just a matter of carefully evaluating the situation to determine the right solution.
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