1.) Save Thousands to Tens of Thousands on Commissions
For many Homeowners, the traditional 6% sales commission (3% to Buyer’s Agent, 3% to Seller’s Agent) eats up a massive chunk the equity they’ve worked so hard to build in their home. When you sell For Sale by Owner you can drastically reduce or eliminate this cost, saving you thousands to tens of thousands of dollars.
Signing a listing contract limits your options and can tie your property up for months, especially if you wind up with an ineffective Agent. When under a listing contract you may find it nearly impossible to switch agents, to rent out your home, or to pull your home off of the market.
Depending on how hot the market is you can incentivize a Buyer’s Agent to bring you a Buyer by offering up to a 3% commission for doing so. This is at the discretion of the FSBO Seller. Keep in mind that many Buyers do work with Agents, meaning that your pool of potential Buyers may be limited if you do not offer a Buyer's Agent commission.
3.) You can price your home more aggressively when selling FSBO
When sales commissions are removed from the transaction you have more room to aggressively price your home. If you are not paying 3% of your home’s sale price to an Agent you have the opportunity to price your home better than other homes currently listed with Agents, making your home that much more appealing to potential Buyers.
4.) It’s Easier for Buyers to communicate with you and make an Offer
No one knows your property better than you do. A Buyer with questions or inquiries about your property speaks directly to you instead of going through multiple middle-men. Buyers can come directly to you with questions or offers. When you list with an Agent the process of a Buyer making an offer is more complex and may deter some Buyers from inquiring or putting in an offer.
5.) Your Interests
A sales agent gets paid only when your property sells. A ten or fifteen thousand dollar drop in the sale price of your home barely affects the size of a commission check yet severely affects the amount of money you walk away with after the sale. If you list your property with an Agent any Buyer interested in your home must go directly through your Agent, giving them complete control over the sale of your home. If a Buyer who is not working with an Agent wants to see or buy your home, the listing agent has a large financial incentive to attempt to represent both you and the Buyer in the same transaction and thus collect a double commission (3% to Seller’s Agent and 3% to Buyer’s Agent).