Don’t Sell on Your Own Just Because It’s a Sellers’ Market 04.06.2021

Dated: April 6 2021

Views: 168

Don’t Sell on Your Own Just Because It’s a Sellers’ Market

Don’t Sell on Your Own Just Because It’s a Sellers’ Market | MyKCM

In a sellers’ market, some homeowners might be tempted to try to sell their house on their own (known as For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is as low as it is today, buyers are eager to snatch up virtually any house that comes to market. This makes it even more tempting to FSBO. As a result, some sellers think selling their house will be a breeze and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more in the long run.

According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent.

The NAR report explains:

FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000…Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”

When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):Don’t Sell on Your Own Just Because It’s a Sellers’ Market | MyKCMThat’s a lot of money to risk losing when you FSBO – far more than what you’d save on commission or other fees. Despite the advantages sellers have in today’s market, it’s still crucial to have the support of an expert to guide you through the process. Real estate professionals are trained negotiators with a ton of housing market insights that average homeowners may never have. An agent’s expertise can alleviate much of the stress of selling your house and help you close the best possible deal when you do.

Bottom Line

If you’re ready to sell your house this year and you’re considering doing so on your own, be sure to think through that decision carefully. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. Let’s connect to discuss how a trusted advisor can help you, especially in today’s market.

Blog author image

Jeremiah Dorn

Jeremiah Dorn a.k.a. "The Lifestyle Realtor" is a Buyers' and Seller's Agent at Agent4ThePeople Team with Berkshire Hathaway HomeServices Select Realty. If houses could talk, they all would be shouti....

Latest Blog Posts

82,338 Great Reasons to Buy a Home Today 04.20.2021

82,338 Great Reasons to Buy a Home TodayThe financial benefits of buying a home as compared to renting one are always up for debate. However, one element of the equation is often ignored – the

Read More

How Much Time Do You Need To Save for a Down Payment? 04.19.2021

How Much Time Do You Need To Save for a Down Payment?One of the biggest hurdles homebuyers face is saving for a down payment. As you’re budgeting and planning for your home purchase, you&rsquo

Read More

Home Is Where the Heart Is [INFOGRAPHIC] 04.16.2021

Home Is Where the Heart Is [INFOGRAPHIC]Some HighlightsThere’s no doubt about it: homeowners love their homes, and that feeling has become even more important over the past year.The vast

Read More

Why This Is a Great Year to Sell Your Vacation Home 04.15.2021

Why This Is a Great Year to Sell Your Vacation HomeAs vaccines are administered and travel resumes, many of us are beginning to plan for those long-awaited vacations we missed out on over the past

Read More