The Cost of Selling on Your Own: Why Professional Assistance Matters
Updated: Sep 30
Selling a property on your own, also known as "For Sale By Owner" (FSBO), may seem like an enticing way to save money on real estate agent commissions. However, it's important to understand the costs involved in selling on your own, as they can add up and potentially outweigh the savings. Let's dive into the statistical data that supports these claims:
1️⃣ Marketing and Advertising: In a study conducted by the National Association of Realtors (NAR), it was found that homes sold by real estate agents typically fetched a higher sale price compared to FSBO properties. On average, homes sold by agents sold for 6% higher than FSBO properties. This difference can partially be attributed to the comprehensive marketing and advertising strategies employed by agents, which expose properties to a larger pool of potential buyers.
2️⃣ Time and Effort: According to the NAR, FSBO homes often take longer to sell compared to those listed with an agent. In fact, the median time on the market for FSBO properties was 20 days, while agent-assisted homes sold in just 10 days. The additional time spent on selling a property without professional assistance can result in added carrying costs, such as mortgage payments, utilities, and maintenance expenses.
3️⃣ Legal and Documentation: Selling a property involves navigating complex legal and documentation requirements. Hiring an attorney to handle these aspects can be costly. According to HomeLight's Q3 2021 Top Agent Insights Report, agents estimated that the legal and documentation costs for a typical home sale ranged from $500 to $2,000. These costs vary depending on the location and complexity of the transaction.
4️⃣ Lack of Market Knowledge: Real estate agents have access to extensive market data and insights that enable them to accurately price properties. According to a study by Collateral Analytics, FSBO properties tend to be priced lower than agent-assisted properties. On average, FSBO properties sold for 5.5% less than comparable agent-listed properties. The lack of market knowledge and pricing expertise can result in selling for less than the property's true value.
5️⃣ Negotiation Skills: Skilled negotiation is crucial in maximizing the sale price and favorable terms. According to the NAR, FSBO sellers often face difficulties in negotiating with buyers, leading to potential price concessions. On the other hand, agents are experienced negotiators who can help sellers secure the best possible price and terms.
6️⃣ Limited Exposure: The NAR reports that the vast majority of buyers (94%) use online platforms to search for properties. Real estate agents have access to multiple listing services (MLS) and robust marketing channels that expose properties to a wide range of potential buyers. FSBO sellers, however, may struggle to reach the same level of exposure, resulting in reduced demand and potentially a longer selling process.
By carefully considering these costs and potential challenges, it becomes evident that professional assistance from a real estate agent offers significant advantages. While it's possible to save on agent commissions, selling a property without expert guidance may not always be the most cost-effective or efficient option. Don't overlook the statistical data that supports the value of working with a professional and make an informed decision when it comes to selling your property.
If you are interested in Buying, or investing in an Las Vegas Home or Selling Las Vegas Real Estate please contact us. We have homes all over the Greater Las Vegas Area.
We are changing the way people are doing Real Estate.
Have Questions? We have Answers!
Thank you for your business, referrals, and your partnership for life. Let’s connect to continue down the path toward your Real Estate goals.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Tammy Kaiser & Realty One Group do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Tammy Kaiser & Realty One Group will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.