Home sellers commonly think of two main options to sell a home: (1) hire real estate agents and pay their commission that take an average of 6% of your home’s equity or (2) try to sell your home yourself. Many homeowners are drawn to the DIY option based on the belief that it will save them a lot of money.
While the cost savings of a DIY home sale seems appealing at first, there are a number of direct and indirect costs that add up when pursuing a For Sale by Owner (FSBO) transaction. Once sellers have paid for a listing on their local Multiple Listing Service (MLS) is when most other direct costs will start to build up.
There is also an indirect cost of FSBO that many sellers are unaware of. The high likelihood of leaving money on the table, namely from a lack of experience in pricing the home for sale and offer negotiations that could result in tens of thousands of dollars in lost revenue. Additionally, according to the National Association of Realtors (NAR) two out of three FSBO deals fail, often due to a lack of knowledge and experience. This results in sellers ultimately hiring agents and costing sellers even more money.
The Home Bay research team gathered common direct costs associated with a FSBO sale in the infographic below to show the “true” cost to sell in a DIY fashion. Adding up the total of direct costs of FSBO shows that sellers likely won’t save money in the end. Sellers shouldn’t go it alone but rather, trust their home sale to experts at Home Bay and possible pay even less.
Home Bay sets itself apart as a modern service for sellers as a team of expert real estate agents who are in the top 1% nationwide (based on home sales), coupled with a platform that manages the entire listing to sale transaction from start to finish - all for a low flat fee that is always less than 1% of your home’s value.
To learn more about how much you can save, call us today.
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