For Sale by Owner Explained

DIY has become quite an industry in the last several years. TV shows like “Fixer Upper”, “Rehab Addict”, and “This Old House” make you feel like you can tackle just about any renovation project. And a simple search on YouTube brings up videos on everything from how to clean out your dryer vent to how to replace a toilet. Couple that with the rising cost of just about everything and it seems only natural that you might want to consider selling your home yourself. In fact, 10% of homes sold in the US in 2021 were sold by their owners, not licensed REALTORS®. But have you ever considered what actually goes into a “for sale by owner” transaction (commonly known as FSBO)? Let me break it down for you before you decide to DIY your home sale.

For Sale by Owner Explained

Pros of FSBO

First of all, when you sell your Southern California home yourself, you do not pay any commissions. The seller pays the commissions for a home sale. That can amount to 5% to 6% of the sale price. While half of that usually goes to the buyer’s agent, the seller’s agent receives thousands of dollars for their services as well. Another plus for FSBO is that you take total control over the sale, including how to market it, paying for photographers/videographers, when buyers see your property, fielding offers, and negotiating the final deal. That sounds like a lot of work, right? Well, that’s because it is. And that brings us to the “cons”.

Cons of FSBO

Like I said before it’s a lot of work to sell a home…even for seasoned real estate veterans. Also, FSBOs tend to take longer to sell than agent-represented properties. A licensed REALTOR® has access to the MLS. This allows your property to be seen by thousands of other agents across the country. More eyeballs on your property usually translate to more bodies through your door. More bodies through your door mean a higher likelihood of finding a buyer quicker. Real estate negotiations can be tricky when you lack experience in the field. Finally, how do you know where to set your list price? Ask for too little and you run the risk of losing out on some profits. Ask for too much and you may end up sitting on the market for much longer than necessary. A licensed agent knows the market and can help you run comps in the area to set a realistic listing price that will bring buyers to your door.

Carefully weigh the pros and cons of a “for sale by owner” scenario. There are several factors you need to consider before making a decision. If you decide to hire a professional, contact me. I’m always happy to help.

Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty