Is Listing Without an Agent Right For You?
When most families decide to sell their home, their first step in the process is contacting an agent. However, very few of them do this without first giving at least a modicum of thought to listing without one. In 2016, for-sale-by-owners (FSBO’s) accounted for 8% of home sales (source: 2017 National Association of REALTORS Profile of Home Buyers and Sellers). I’ll acknowledge that I understand the decision to list your home without an agent. There are a myriad of reasons to go this route, and for me to dismiss them as without merit (as many agents tend to do) would be both condescending and, frankly, wrong. However, I’d like to address a few of them specifically.
Reason #1: Listing without an agent can save you thousands of dollars. A listing agent typically charges a commission of 6%, with 3% of this commission going to the buyer’s agent. Even by listing without an agent, the buyer’s agent commission is unavoidable, so listing as an FSBO can only save you, realistically, 3% overall. On a $200,000 home, this comes to $6,000! If you are rolling the funds from the sell of your home into the purchase of your next home, you can expect to pay that $6,000 off over the next 30 years, which lands closer to $10,000 at typical interest rates. This is an amount that no fiscally conscientious seller can afford to scoff at, obviously. But are these saving actually realized?
In 2016, For-Sale-By-Owner’s (FSBO’s) accounted for 8% of sales, with a average sale price of $190,000. Meanwhile agent-assisted home sales had an average sale price of $249,000 (source: 2017 National Association of REALTORS Profile of Home Buyers and Sellers). That’s a 31% difference, completely eclipsing the 3% commission many FSBO’s...