Wednesday, February 1, 2017 / by Anthony Alfano
FSBO Fail: Why trying to sell your own house simply doesn’t work
Every year, a very small portion of brave and misguided homeowners try to sell their homes themselves, without the help of a real estate agent. Why would anyone try to sell their home as a FSBO (For Sale By Owner)? Unless they happen to be a real estate attorney, there is only one likely motive: to try and save money.
After all, a typical full real estate commission is 6%, with 3% going to the buyer’s agent and 3% paid to the seller.
“Isn’t 6% of the sales price a whole lot to give up when selling my house?” their thinking usually goes, and rightfully so.
But remember that when listing FSBO, homeowners still need to pay a buyer’s commission of 3%. If they don’t offer a commission for the buyer’s realtor, no one will ever show the home or do business with them.
But maybe they'll just find a buyer that doesn't want to use a real estate agent, so they won't have to pay their commission? Wrong. The vast majority of buyers use ...
After all, a typical full real estate commission is 6%, with 3% going to the buyer’s agent and 3% paid to the seller.
“Isn’t 6% of the sales price a whole lot to give up when selling my house?” their thinking usually goes, and rightfully so.
But remember that when listing FSBO, homeowners still need to pay a buyer’s commission of 3%. If they don’t offer a commission for the buyer’s realtor, no one will ever show the home or do business with them.
But maybe they'll just find a buyer that doesn't want to use a real estate agent, so they won't have to pay their commission? Wrong. The vast majority of buyers use ...