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What are the pros and cons of a FSBO sale?

On Behalf of | Oct 28, 2022 | Selling Real Estate |

Selling a house in today’s market can be challenging but lucrative. While it may seem like sellers in the San Francisco area have the upper hand, the market is always in flux, and you will likely want to make sound financial decisions if you want to sell your home.

Some people believe it is easier and more cost-effective to sell their home without the assistance of a realtor. If you do choose the “for sale by owner” (FSBO) route you should first make sure you know what to expect and what challenges you might face.

The pros of a FSBO sale

You may think the pros outweigh the cons of selling your home without a realtor. For example, if you sell your home on your own, you do not have to pay a commission to a realtor, which could save you thousands of dollars.

You also get to cut out the middleman, meaning you get to choose which offers you want to examine further, and you get to decide how to advertise your home.

Also, according to one source, those who sell their home without the help of a realtor sell their home quicker than if they were working with a realtor during the selling process.

The cons of a FSBO sale

However, there are some disadvantages to selling your home without a realtor. The entire sales process can be intimidating since you must take on all steps on your own. For example, you will have to:

  • Determine how much your home is worth
  • Prepare your home for market
  • Advertise your home, and
  • Confirm your buyer’s ability to afford the home

Your home may sell for less than it would if you had a realtor. According to one report in 2020 FSBO homes sold for almost $25,000 less than the median sales price netted by those who worked with a realtor to sell their home.

In addition, if there are any bumps in the road such as a title defect you are left to handle them on your own, which can prove to be difficult at times.

Should you work with a realtor?

Should you work with a realtor? That is ultimately up to you.

You will want to weigh the pros and cons of a FSBO sale and determine what works best for financially and logistically. If you do choose the FSBO route, you will likely still want to consult with an attorney during the process to ensure the entire sale runs smoothly.