Should You Try and Sell Your Home Via FSBO

You have decided that you want to sell your home and make the next move up the real estate ladder, but should you try and sell your home via FSBO (For Sale By Owner) or use a Realtor.

The main argument for not using a Realtor is; 'why should I have to pay the Realtors commission when I can do it myself for nothing'. After all that commission can add up to a lot of money (typically $6,000 per $100,000 home sales price). Lets try to look at the facts and decide if you really are saving money by going down the FSBO route.

1. Nearly 80% of all home buyers use a Realtor when buying a home. In Utah both the buyers and sellers real estate commission is paid for by the seller. So if a buyer uses a Realtor, then it is expected that the seller will pay their commission. You could of coarse refuse to pay that commission, but by doing that you will be ruling out nearly 80% of all prospective home buyers. So the chances are you will finish up paying the commission. Now all of a sudden you are not saving 6% you are only saving 3%.
2. On average a home will sell for 16% more if it is sold by a Realtor. This differentiation in sales price could be for several reasons. First of all a Realtor will know how best to market your home based on current real estate market conditions. They have access to more marketing resources including the MLS (Multiple Listing Service). They can also suggest cosmetic changes that will make your home more appealing and will improve the chances of your home selling. They will also know what the best listing price is for your home. The most common mistake made by sellers is to set the listing price either too high (people will be put off) or too low. All of this increases the chances of your home selling faster and for more money.

Another reason why you should use a Realtor to sell your home is because they have access to the MLS. The MLS is the most effective marketing tool you can use when selling your home. Realtors and clients use the MLS to find homes, so if your home is not on the MLS the chances are most people are not even going to know that you are selling your home. In some States it is possible for Realtors to list your home on the MLS, but not provide other home listing services. In Utah we have a minimum service contract law which means that Realtors need to provide a minimum level of service and does not allow MLS only listings.

So after reading the above do you still think that you will save money by selling your own home?