Selling a home can be a complex and emotional process, and choosing between a for sale by owner (FSBO) approach or using a realtor is a critical decision that can impact the outcome of the sale. Whether you are looking to save money, have more control over the process, or simply want to avoid paying commission, it is essential to understand the pros and cons of both options. 

In this article, we’ll explore the key factors to consider when deciding between an FSBO or a realtor when selling your home. We’ll examine the statistics, the impact on the sales price, the time it takes to sell, and the level of support and expertise you can expect from each approach. Whether you’re a seasoned seller or a first-timer, this guide will help you make an informed decision and ensure that you get the best possible outcome when selling your home.

FSBO Advantages

• Cost Savings – One of the most significant advantages of FSBO is cost savings. By avoiding the commission typically charged by a realtor, you’ll be able to keep more of the profit from the sale of your home.
• More Control – When you sell your home independently, you have complete control over the process. This includes setting the price, negotiating with potential buyers, and managing the logistics of the sale.
• Knowledge – When you sell your home on your own, you can learn a lot about the real estate market in your area. This can be especially valuable if you plan to sell your home again.
• Flexibility – When you sell your home as an FSBO, you can be available for showings and open houses whenever possible. You also can set the pace of the sale process, which tends to be much slower moving than with a realtor.
• Higher net proceeds – Because you don’t have to pay a commission to a realtor, you’ll likely keep more of the proceeds of a likely lower sales price from selling your home.

FSBO Cons

• Time commitment – Selling your home as an FSBO is a time-consuming process. You’ll need to handle all aspects of the sale, including listing your home, marketing, negotiating, and closing.
• Lack of expertise – You must have experience in real estate sales to have the knowledge and expertise to market and sell your home effectively.
• Limited reach – When you sell your home as an FSBO, you rely on word of mouth and marketing efforts to reach potential buyers. This can limit your exposure to potential buyers, especially if you are still getting familiar with the best marketing strategies.
• Emotional attachment – When you sell your home as an FSBO, you may have a harder time separating your emotions from the sale process. It can make it difficult to make objective decisions, especially during negotiations.
• Legal issues – Selling a home involves a lot of paperwork and legal responsibilities. If you are familiar with real estate law, you may need help to properly navigate the process, which could lead to legal issues.
• Lack of Privacy –  In order to find a buyer, “For Sale By Owners” will have to put their contact information out in the open. As soon as it’s available, expect to receive hundreds of calls each day. 

Realtor Pros

• Marketing Expertise – Realtors have the experience and expertise to market your property effectively, including utilizing their network and resources to find potential buyers.
• Higher Sales Prices –
• Price Negotiations – A good realtor can help you set a fair price for your home and negotiate on your behalf with potential buyers. It can help you get the best possible price for your property.
• Access to a Network of Professionals – Realtors have a network of professionals they work with regularly, including inspectors, contractors, and mortgage brokers. This network can help you with any additional needs during the sales process.
• Time Savings – Selling a home can be a time-consuming process. Hiring a realtor can save you time and reduce stress by taking care of tasks such as scheduling showings and open houses, handling negotiations, and managing paperwork.
• Increased Sales Price – Studies have shown that homes sold by realtors tend to sell for a higher price than those sold by FSBO. It is due to the marketing expertise, price negotiations, and legal knowledge that realtors bring to the table.

Realtor Cons

• Commission Fees – One of the only cons of using a realtor is the commission fee. This fee can range from 5% to 6% of the sale price. In many instances, a realtor commission fee is worth the investment when considering all of the advantages and services you receive when working with a great real estate agent. 
• Lack of Flexibility – There may be better options than working with a traditional realtor if you have a specific timeline or deadline for selling your home. Realtors often have multiple clients and other obligations, making accommodating your specific needs and timeline difficult.  At Embark Real Estate Group, we provide personalized service to ensure that we’re communicating with you and for you in a timely manner, no matter the scenario. 

Key Takeaway

When deciding between an FSBO and a realtor, it is essential to consider the following Statistics. 

• The impact on the sales price
• The time it takes to sell
• The level of support and expertise you can expect from each approach

A study by the National Association of Realtors (NAR) found that real estate agents sold for a median price of $250,000, while homes sold by FSBO sold for a median price of $190,000. However, you will only automatically get a higher price if you work with a realtor; it depends on several other factors, such as the market conditions, the location of your home, and the level of competition.

The time it takes to sell your home is also an essential factor. According to the NAR study, homes sold by real estate agents took an average of 68 days to sell, while homes sold by FSBO took an average of 97 days to sell. It may seem insignificant, but it can make a big difference if you are trying to sell your home quickly.

In conclusion, the choice between FSBO and a realtor depends on your individual needs and goals. If you are comfortable managing all aspects of the sale, have experience in real estate, and want to save money on commission fees, then FSBO may be the right choice. On the other hand, if you are looking for a more hands-off approach, would like professional support and guidance, and are willing to pay a commission fee, then working with a real estate agent from Embark Real Estate Group may be the better choice. Consider all the factors carefully, and make the best decision for you and your situation.