The True Cost of Selling Your House on Your Own

Selling your house is no simple task. While some homeowners opt to sell their homes on their own, known as a FSBO (For Sale by Owner), they often encounter various challenges without the guidance of a real estate agent. 

The most recent Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveyed homeowners who’d recently sold their own homes and asked what difficulties they faced. Some of the greatest challenges were prepping their home for sale, pricing it right, and properly managing the required paperwork. Below, we list some of the true costs of selling your home on your own.

Marketing and Exposure

Effective marketing is a key piece of attracting qualified buyers to your property. Real estate agents have access to various marketing tools and platforms, including the MLS, professional realtor associations, and professional photographers & videographers... just to name a few. They can create a compelling listing that highlights your home's best features and reaches a wider audience.

If you sell on your own, you may struggle to match the reach of agents, resulting in limited exposure and, ultimately, fewer potential buyers.

Liability and Legal Considerations

As regulations change, so do the required disclosures, addendums, and special clauses involved in real estate transactions. Managing the paperwork and legal requirements of selling your home is a full-time job and a vital step to ensuring no legal complications occur. Without professional guidance, you're exposed to potential liability risks and legal setbacks that can delay or even deny a successful home sale.

Real estate agents are well-versed in the contracts, disclosures, and regulations necessary during a sale. Their expertise helps minimize the risk of errors or omissions that could lead to legal disputes or delays.

Negotiations and Contracts

Negotiating the terms of a home sale can be challenging, especially when emotions are involved. Without an agent, you assume this responsibility on your own. This means you’ll have full accountability for working and negotiating with:

• The buyer, who wants the best deal possible.
• The buyer’s agent, who will use their expertise to advocate for the buyer.
• The home inspection company, who works for the buyer.
• The home appraiser, who assesses the property’s value to protect the lender.

Rather than going toe-to-toe with all these parties alone, lean on an expert. Real estate agents act as intermediaries, skillfully negotiating on your behalf and ensuring that your best interests are protected. They have experience in handling tough negotiations, counteroffers, and contingencies. When you sell your house yourself, you’ll need to be prepared to manage these vendors on your own.

Pricing and Housing Market Knowledge

Determining the right asking price for your property is crucial. It requires in-depth knowledge of the local real estate market, including recent sales data, neighborhood trends, and the current demand for properties. Real estate agents have access to comprehensive market data and the expertise to analyze it accurately.

When you sell your house on your own without this comprehensive information, you risk overpricing or underpricing your home. This can result in an extended time on the market and also the risk of leaving money on the table - which decreases your future buying power. An agent is a key piece of the pricing puzzle.