Just Because It's a Seller's Market Doesn't Mean You Should Sell on Your Own

In a sellers’ market, some homeowners can be tempted to try to sell their home themselves (For Sale By Owner, or FSBO) rather than working with a reputable real estate agent. When the number of available homes for sale is as limited as it is now, buyers are willing to snap up any home that comes on the market. This makes FSBO even more appealing. As a result, some homeowners believe selling their home would be simple and see today’s market as an opportunity to sell their home for cash. Let’s look at why it’s a bad idea that could end up costing you more money in the long run.

According to the National Association of Realtors’ (NAR) Profile of Home Buyers and Sellers, 41% of homeowners who wanted to sell their home on their own did so to avoid paying a commission or charge. Even in a sellers’ market, selling on your own will almost always result in a lower profit than selling with the aid of an agent.

According to the NAR report, FSBOs usually sell for less than other homes; in 2020, FSBO homes sold for a median of $217,900 (up from $200,000 in 2019), but much less than the median selling price of all homes, which was $242,300. Homes sold with the help of an agent for a median price of $295,000… Sellers who started as an FSBO and then worked with an agent got 98 percent of the selling price, but they had to lower their price the most before reaching a final listing price.

When the seller knew who the buyer was, the price was even lower, at $176,700.

When you do FSBO, you’re risking a lot of money – way more than the commission or other fees you’ll save. Despite the advantages sellers have in today’s market, having the assistance of a professional to direct you through the process is essential. Real estate agents are skilled negotiators that have access to information about the housing market that most homeowners would never have. An agent’s knowledge will take a lot of the stress out of selling your home and help you get the best price possible.

Bottom Line

If you’re about to sell your house this year and you’re considering doing so on your own, make sure to think about the decision carefully. Odds are, you stand to benefit the most from partnering with a professional and seasoned real estate agent. To learn more about how a trusted advisor can assist you, particularly in today’s market, contact a local professional.