Explained by One of the Best Real Estate Companies in Las Vegas
If you’re looking to buy or sell your home, or even if you’re the top realtor in Las Vegas, it’s always good to brush up on important real estate processes.
Going for sale by owner (FSBO) means what it sounds like: you as the owner are putting your own home on sale, without the help of a listing agent. There are many pros and cons to this method, but your success in it ultimately comes down to your real estate experience and ability to go it alone.
In order to know if FSBO is the way to go, it’s important to look at the pros and cons:
Pro: You run the show.
Who you target, who you show your home to, who you interview, what you price your home at, when you make showing appointments, how you stage your home, how you negotiate, and so many more decisions are controlled by you and you alone. This gives you ultimate freedom.
Pro: Less fees.
Listing agents will usually increase the selling price to include their commission, roughly 5-6% of the selling price. This price increase may discourage people from buying your home. When you go FSBO, however, you can nix the commission expense, which might make your selling price more reasonable and therefore sell your home faster. And, you don’t have to pay a listing agent to help you.
Con: Owner’s bias.
Even though you know what you love about your home, you might be too biased to see what buyers will love about it. A home stager and listing agent will have a less biased knowledge of what are the selling points of your home that a buyer will likely be interested in. More on the benefits of home staging
Pro: An insider’s opinion.
However, you have lived in this house. You can provide better insight on what it is like to live in it and its community than any agent could. Although agents and stagers know how to get your home sold, buyers want to know what the community is like, and you can leverage that insight.
Con: Unqualified leads.
People gravitate to FSBO sales because they see it as a bargain or an act of desperation on your part to get a quick sale. This can cause you to get unqualified leads that are not the type of buyers you are looking to negotiate with. A listing agent can utilize their connections and brokerage to help you get better, more qualified leads.
Con: Listing agents are a HUGE help.
When you go FSBO, you will encounter those who are ready and willing to buy a home and those who are merely interested in your community, but you will rarely run into the demographic that has both of these traits. And this is the demographic you’re aiming for. When you have a listing agent, they will list your home on the MLS, which targets people who already have a buyer’s agent and are looking in your community.
Con: You might not have the marketing edge.
Plus, a listing agent will have a marketing campaign laid out for you that will get your home seen beyond the people who see the “For Sale” sign in front of your house or those you’ve reached out to on social media. This is a crucial point, because although going FSBO reduces fees, you want to think about if the fees are that terrible when looking at what an agent can do to get your home sold much more quickly and efficiently than if you could on your own.
Con: You run the show.
When it comes down to it, do you truly feel like you know enough about the current housing market to accurately price and market your home? Do really want to go through the exhausting effort of getting your home clean, marketed, shown, and sold? Having all this responsibility is a lot to put on one person, and it will likely hinder you in the long run.
Bottom line: Overall, real estate agents are an investment, but they are a worthy one. Only they have access to previous closing prices of homes similar to yours. They have the industry knowledge to navigate the stressful process. However, going FSBO is a valid route to take, and it is gaining more and more acceptance. You need to evaluate your personal knowledge and abilities in order to make the decision of whether to go FSBO.
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