For Sale By Owner vs Realtor

When you’re ready to sell your home, the thought may occur:

“Why not list it on my own…For Sale By Owner?”

(You’ll often see “FSBO” for short in articles and websites, or hear it in conversations.)

For Sale By Owner vs Realtor

I have a friend in another state who sold her house on her own. How did she do it? Well, let’s just say the “stars aligned” to make it happen.

She had the home built in a neighborhood 3 years prior. There were only about 20 homes built on this tract of land, which was attached to an older neighborhood. Then, 3 years later, the land on the other side of her street was developed.

A wealthy businessman bought the acreage, with the intention of building his own home, plus several others on a large block. The street was a continuation of the street my friend lived on.

My friend decided a few months later to sell her home and word got around.

One day, the businessman came to her door and offered cash to my friend to purchase her house.  He said his daughter and son-in-law were pregnant with twins. My friend’s house, he said, was perfect for them, and was located only two houses from his own.

He wanted to gift them the house!

An FSBO Happy Ending

Consequently, the offer was reasonable, and my friend accepted it. The cash offer allowed for a fairly simple transaction. The only expense for my friend was hiring a real estate lawyer to write the sales contract and assist with other necessary paperwork, which was minimal.

Needless to say, everything went smooth as silk, and my friend saved considerable time and effort – and didn’t have to pay commission to a realtor.

So, yes, these situations can, and do, happen! However, they’re not the norm and, like I said earlier, the stars were, indeed, aligned. The timing and the circumstances were perfect.

Same Friend – Different Story

I have another story – same friend.

After selling her house, “FSBO,” she built a larger home about 3 miles from the first, in another newer neighborhood. She and her growing family lived there for 3 years before deciding they wanted to move out-of-state to warmer weather.

Feeling inspired by her FSBO success a few years prior, my friend decided to try it again.

This time, a few people inquired, but no one bought it. Consequently, it was in a very nice area of town, with many beautiful newer homes in the vicinity, and great neighborhoods all around.

It was also the beginning of the Recession, and many people had lost their jobs, or were scared about their future. Many sold their homes and moved out of the state, with hopes that the economy was better elsewhere.

My friend made the decision that she wanted to move ASAP, and realized that “supply exceeded demand.” It was a buyer’s market. This made it even more difficult to sell her home.

Additionally, her home was a larger, luxury home. This home category is typically on the market a bit longer than average, even in a good economy.

A Happy Ending Using a Realtor

My friend quickly decided that she needed to contact a realtor. She realized if she wanted to sell her home, she wouldn’t be able to do it in a timely manner, and without a lot of hassles, on her own.

She admitted to herself (and later, to me) that her FSBO story was atypical. Basically, she got lucky. Period.

The realtor she chose did what a realtor is trained to do, and her house was sold two months later for a great price. The transaction went smoothly. No stress. No hassle.

3 Reasons to Use a Realtor and Avoid “FSBO”

Initially, selling your home “FSBO” looks great on paper. But, truthfully, the stress and potential pitfalls aren’t worth the money you’re trying to save by not having to pay commission to a realtor. Time and again, “For Sale By Owner vs Realtor” ends up with the Realtor on top.

Although there are many reasons to work with a realtor when selling your home, here are three compelling ones (HouseHunt.com):

1. Selling Price. FSBO homes sell for an average of $40,100 less than a house listed by a professional. That equates to a 23% higher selling price when using a realtor.
2. Time on Market. It takes, on average, 19 more days for an FSBO house to sell. Furthermore, oftentimes the house must be relisted on the MLS. This equates to a 22% faster selling time when using a realtor.
3. Stress on Seller. 70% of people admitted they had major difficulties in the process of selling their home FSBO. In contrast, a realtor has many resources, along with formal training to handle many situations involving things such as home repairs, legal paperwork, and pricing/finance.

In conclusion, a good realtor earns his or her commission by dealing with the many facets and potential challenges during the home-selling process. He or she does the work, so you don’t have to!

Read my blog article, “How to Choose a Good Realtor,” to help you get started the right way when you’re ready to sell your home.

Dana Davis
Dana Davis Properties/DHR (Distinguished Homes Realty)
Phone: (386) 569-4998