January 30th 2025.
When it comes to selling their homes, many people consider doing it themselves instead of hiring a real estate agent in hopes of saving some money. A recent survey revealed that some people choose the for sale by owner (FSBO) route because they don't want to pay the commission to a listing agent. However, this process is not without its challenges.
According to data, almost half of FSBO sellers end up regretting their decision to not use an agent due to issues with pricing their home. In comparison, only 73% of sellers who had an agent felt satisfied with the price their home was listed at. Furthermore, a staggering 80% of FSBO sellers expressed dissatisfaction with some aspect of their home sale, with the most common regret being the lack of offers.
It is not surprising that many FSBO sellers feel overwhelmed during the selling process, with about half of them admitting to it. And to make matters worse, more than half of them also reported that buyers did not trust them. So while it may seem like a good idea to save money by not hiring an agent, research has shown that it may not be the best route to take.
Based on the average commission of 2.74%, sellers could save around $14,000 on a $500,000 home by going the FSBO route. However, those who chose to work with an agent reported an average profit of $207,500, which is $79,000 more than what FSBO sellers made. These statistics were gathered by Clever, a real estate education platform, through a survey of 654 American adults who sold a home in 2024 or 2023.
It is essential for sellers to weigh the pros and cons of doing a FSBO sale or hiring an agent. Jaime Dunaway-Seale, the author of the survey, shared her insights with BLACK ENTERPRISE. She mentioned that the upside of FSBO is that sellers have more control over their sales and can negotiate without a middleman. They can also schedule showings and set the listing price themselves. However, the downside is that they miss out on the expertise and experience of an agent, which can result in lower profits.
On the other hand, hiring an agent means having someone by your side who knows the market and understands the home-buying process. This often leads to a more significant profit, faster sales, and a less stressful experience for the seller. However, using an agent does come with a significant upfront investment that can eat into the overall profit.
In the end, the decision of whether to sell your home on your own or with the help of an agent depends on your situation and priorities. According to Seale, sellers should consider factors such as profit, finding the right buyer, and the speed at which they want to sell before making a choice. It's essential to weigh the pros and cons carefully, as evident from the case of a dentist who was sentenced to 15 years in prison for stealing pain medication from patients during surgery. Ultimately, the goal should be to ensure a successful and stress-free home sale.
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