Selling Your House? You May Not Need a Real Estate Agent: For-Sale-By-Owner Trends 2023
Imagine selling your house with zero commission fees and full control of the entire process. Traditionally, real estate agents have been the go-to professionals for selling a property. However, recent trends in the real estate market indicate a shift towards For-Sale-By-Owner (FSBO) listings.
In 2022, 10% of all homes were sold without a realtor, the highest percentage since 2010. The graph below shows the percent of homes sold without a realtor from 2008 to 2022.
The Rise of FSBO Listings in Recent Years
The real estate market has experienced a notable increase in FSBO listings over the past few years. Statistics from research conducted in the USA indicate 10% of all homes were sold without the involvement of a real estate agent in 2022. Similar trends exist in Canada too.
The increase in FSBO listings can be attributed to new online resources and higher property values. New websites and flat-fee realtors help owners sell on their own easier than ever before. At the same time, high property values have owners looking for ways to save money on the realtor fees. After all, when house prices were lower, the cost of a realtor was lower because they are paid as a percentage of the house's value.
Costs to Sell a House Without a Realtor: $1000 - $3500
Transferring the title of a house will require a lawyer and costs around $1000. If you want to list your house on the MLS, you will need a flat-fee service that will charge another $100. Lastly, staging your house will cost a design fee of $300 - $500 then up to $600 per room per month the house is staged.
FSBO houses typically sell for 25% less than houses advertised by a realtor. Spending money advertising your house for sale can be worth it if you find a buyer who will spend more.
Some costs, like drafting a Contract of Purchase and Sale to put an offer on the house, will be paid by the buyer. Financially savvy buyers can visit online document platforms like LegalDeeds to write their Contract of Purchase and Sale for $40.
Benefits of Selling Your House as FSBO
Financial Advantages
By opting for FSBO, sellers can save on commission fees that are typically paid to real estate agents. This means that a larger portion of the sale price remains in the seller's pocket. That could be tens of thousands of dollars saved!
Control and Flexibility
Selling your house without a real estate agent gives you full control of the process. You can set your own schedule, negotiate directly with buyers, and make decisions without a middleman.
Increased Transparency and Trust
Direct communication between buyers and sellers, fostered by FSBO listings, promotes increased transparency and trust. By eliminating the agent as an intermediary, both parties can build a stronger relationship.
Addressing Potential Challenges
While FSBO may offer numerous advantages, it is essential to be prepared for potential challenges. Common concerns like pricing, staging, and negotiation can be overcome with thorough research and preparation. Discovering effective pricing strategies, implementing staging tips, and acquiring negotiation techniques will empower sellers in addressing these challenges head-on.
Resources
Remax.ca: Hard stats about FSBO
LegalDeeds: Contract of Purchase and Sale to put an offer on a house without a lawyer