Clever's concierge team can help you compare local agents and negotiate better rates. Clever's concierge team can help you compare local agents and find the best expert for your search. Many people think they can save time and money by selling their homes without a real estate agent. But did you know that FSBO sales make less money on average than sales with agents involved? We've compiled this and 23 other FSBO facts that sellers should know.
Selling a home is difficult, and many FSBO salespeople find the job much harder than they expect. Check out these FSBO facts about what sellers considered the hardest parts of selling a home without a real estate agent. Wondering what's the hardest part of selling FSBO? More than 12% of FSBO salespeople said they were preparing the house for sale, more than any other task. If you sell FSBO, you may be overwhelmed by the amount of work you have to do, such as organizing your home the right way, keeping the house clean for exhibitions, taking care of repairs and touch-ups, and maintaining the lawn and garden.
While many of these are tasks that you'll need to do even if you have an agent, an agent can give you instructions on what work is most important in attracting buyers. The second hardest part of selling FSBO is completing the paperwork. This was rated as the hardest part of the job by 10% of FSBO salespeople. Completing paperwork related to a sale is an incredibly difficult process that most FSBO salespeople struggle with.
Even if you price your home correctly and find a willing buyer on your own, as an FSBO seller, you'll handle much of the paperwork that goes with a sale. While you can hire a real estate lawyer to handle some of the paperwork, including the sales contract, this will cost you extra money out of pocket. And a lawyer won't give you the advantages offered by a real estate agent, such as knowing how to price your home or offering the most attractive buyer incentives for your market. About 6% of FSBO salespeople said selling their home within the desired time range was the hardest part of the job.
Non-realtors simply don't have the marketing skills or network of interested buyers that an agent puts on the table that help a property sell quickly. Not surprisingly, selling within a desired time frame was also the main reason people chose a real estate agent, according to 36% of salespeople assisted by agents. That suggests that selling fast is one of the main benefits that a real estate agent brings compared to doing it alone. If you want to sell fast, your safest bet is to get an agent to help you with the sale.
FSBO is so much work that a lot of people struggle to find the time for it. Not only do you need to focus on preparing your home for sale (which is the number one difficulty FSBO sellers encounter), but you also need to focus on finding buyers through marketing, showcasing, and negotiating with potential buyers. And when you have an offer, you'll have to do even more of the work that a real estate agent would normally do, such as drafting a sales contract. And after all that work, you're likely to end up with less money than if you just hired an agent in the first place.
About 91% of all homes for sale are listed on a multiple listing service (MLS), but only 6% of FSBO sellers market their homes with an MLS listing. An MLS flat-rate service will cost your home for a couple hundred dollars. An MLS flat-rate service is legally a brokerage agency, so they can list on the MLS, but other than that, they won't do any other work that an agent would do, such as exhibitions, staging, negotiation, or photography. Pricing the house correctly was the most difficult task for 9% of FSBO sellers.
Most FSBO sellers simply look at what other homes in their area sell and choose a similar price. But that doesn't take into account the unique aspects of the home, such as improvements, features, or repair work that could affect its final sale price. The price of your home is one of the most important parts of selling a home. Sellers must find the sweet spot of not losing money on prices that are too low and not losing potential buyers to prices that are too high.
It is also difficult for people who have lived in a house to set a target price for it. Do you still want to save thousands of dollars in commissions without going it alone? A company like Clever can help. If you're looking to leave your sale with as much money as possible, selling your home by the landlord may not be the right option. All the difficulties related to the sale of FSBO inevitably lead to some regrets.
From having to pay surprise agent fees to selling for less than expected, these FSBO statistics show what sellers wish they had done differently or what they wanted to know beforehand. Most FSBO sellers still have to pay 3% real estate commission. Successful FSBO sellers save themselves a fee for their sales agent, but most still have to pay the agent who hired a willing buyer. In fact, 77% of all sellers (FSBO or not) offer a buyer's agent commission.
Since this fee is how the buyer's agent is paid, if you don't offer one, it could disconnect you with a large number of potential buyers. After all, a buyer's agent won't want to show their clients a property if they're not going to get paid. And if your home isn't in the MLS, buyers with agents won't find it anyway. But most FSBO sellers don't know the buyer, which means they're probably offering a competitive buyer agent commission of around 3% to find a buyer.
Even after lowering their price more often than other sellers, FSBO sellers who eventually give up and post with an agent only receive 98% of that already lower price. Many FSBO sellers offer incentives to buyers that end up costing them more than agent-assisted sellers offer. The National Association of Realtors found that 18% of salespeople assisted by agents offered home guarantee policies, but only 5% of FSBO sellers offered them. This is a clear example of where a real estate agent can offer real value.
An experienced agent will know that a home warranty policy can tip the scales for a seller, while at the same time costing you a small amount compared to the total sale price of your home. The paperwork and amount of work involved are more than many prospective FSBO salespeople can handle. About 10% of all home sellers start trying to sell on their own, but eventually end up with a real estate agent. These reasons reflect some of the most common difficulties we discussed above, namely that selling a home on your own is a time-consuming job that is often best left to an experienced professional.
Not only are many FSBO salespeople missing out on the value and expertise that a real estate agent brings, but they are also often unaware that they can work with an experienced, full-service sales agent without paying the full 6% commission. Why do all the work of selling FSBO just to end up with less money than you would with an agent? Clever offers you greater savings without sacrificing the service you expect from a traditional real estate agent. With all the occasional difficulties and regrets, you may wonder why some people choose to sell without an agent. These are the most revealing facts about the motivations of FSBO sellers compared to what sellers look for when turning to a real estate agent.
If you're hesitant between selling on your own or selling with an agent, these FSBO vs. Realtor Statistics Can Help You Make Your Decision. It's not worth it that bad real estate agents are the exception, not the rule. That's why, in part, FSBO salespeople represent only a small fraction of total home sales.
According to the NAR, 89% of sellers who work with an agent say they would definitely or probably use the same agent again if they had to buy another property or sell the current one. That's a pretty high number, and it indicates that most sellers are satisfied with the experience they have working with a real estate agent. This fact suggests that many FSBO salespeople are going through what could be a difficult process when they could have a much more positive experience working with an agent. Saving money on real estate commissions was the most popular reason sellers chose FSBO over an agent.
However, what FSBO sellers save in commissions, they often lose in terms of a lower selling price and other costs. FSBO houses sell for 26% less, on average, than those sold with the help of an agent. If you're looking to save money, ultimately, you'd better go with a low-fee agent rather than taking on the big task of selling your own home and potentially for less. That said, FSBO sellers often have a buyer in line when they decide to sell, such as a friend or family member.
In fact, 34% of FSBO sellers say they didn't use a real estate agent because they already had a potential buyer. If you already have a buyer ready, some of the things a real estate agent does, such as holding open days and putting the house in the MLS, are unnecessary. However, a real estate agent can still help draft the sales contract and ensure that the price of the home is adequate. For relatively simple jobs where a seller already has a buyer, many agents are also willing to work for a reduced fee.
While the FSBO may seem like a popular alternative to hiring an agent, FSBO sales represent only 8% of all home sales in the U.S. UU. Most salespeople continue to turn to agents because of their professional sales skills and experience. And the proportion of sellers who rely on real estate agents is only growing.
FSBO sales accounted for 15% of all home sales in 1981, but today they have fallen by almost half. In short, selling a home is a complicated process. With new real estate regulations, better ways to save when selling, and access to a larger pool of buyers, there's a reason why the vast majority of sellers choose to use a real estate agent. Time constraints are a major reason why some sellers choose to work with an agent.
Selling FSBO requires a lot of extra time and energy, so 28% of salespeople decided hiring an agent is a better option. While this isn't the number one reason to choose an agent, it's an important consideration if you're already busy or don't feel ready to do all the fieldwork yourself. As we've already seen, not having enough time to devote to selling a home is one of the top five difficulties FSBO sellers face. For many, hiring an agent solves this problem instantly.
FSBO sellers tend to be less in a hurry to sell than salespeople represented by an agent. Only 42% of FSBO sellers say they needed to sell urgently or with some urgency, compared to 55% of salespeople assisted by agents. This lack of urgency has its advantages and disadvantages. While many FSBO sellers can patiently wait for a good deal, the facts suggest that because FSBO homes sell for less than agent-assisted homes, those good deals don't materialize.
The success rate of selling without a real estate agent is a mixed bag and depends largely on what your definition of “success” is. These FSBO statistics reveal how successful (or not) salespeople who abandon the agent are. Selling your FSBO home is a challenge. Add a lower retail price and out-of-pocket costs, and you'll save A LOT less than you planned, but you'll still be stuck with most of the work.
FSBO sounds like a good idea initially for many marketers, but most eventually realize how difficult it is and give up. In fact, 36 percent of marketers try the FSBO, but only 11 percent succeed. Those who are not successful, withdraw their homes from the market or seek the help of a real estate agent. For many, the FSBO ends up being a waste of time and energy.
Since most FSBO sales fail, if you're thinking about selling on your own, why don't you skip all the problems FSBO entails? Instead, your best bet is usually to find a real estate agent who can do the work for you and still get a sales price that generates more profits for you than you would likely save on your own. When we asked buyers why they would consider buying a home from the FSBO, 73% said they thought their agent or themselves would get a better deal than with sellers represented by the agent. And as we've seen, FSBO houses often close for 26% less. Unless you have a lot of experience and are comfortable negotiating, reconsider listing your home without a real estate agent.
In some cities, FSBO housing is purchased as quickly as properties with agents, but in many cities it takes longer to sell than homes on the agent list. For example, FSBO homes in Los Angeles and Houston are on the market for an average of 40 days less than homes on the agent list. It's no coincidence that those are also two of the most popular housing markets in the U.S. In Detroit, on the other hand, FSBO houses take longer to sell, about 36 days longer than houses on the agent list.
Rochester, NY, and Baton Rouge, LA, Are Just Behind in Both Cities, FSBO Homes Take 28 Days Longer to Sell Than Agent-Assisted Housing. Not surprisingly, those are also three cities that have struggled with population loss in the past decade. So, unless you're in a booming real estate market, there's a good chance your FSBO home will take longer to sell than one assisted by an agent. Sellers have more options than ever to market FSBO housing, including through FSBO websites and social media.
Nearly half of 46% of FSBO sellers do nothing to market their homes. That shocking fact suggests that many FSBO sellers are much less actively involved in trying to find a buyer than sellers assisted by agents. This is only partly explained by the fact that many FSBO sellers already have a buyer in line and therefore don't need to do any marketing. Only about a third of FSBO sellers already know their buyer, leaving a large group of sellers looking for buyers but doing nothing to find them.
When FSBO salespeople market their homes, they rely more on traditional and, some would say, ineffective marketing techniques than agent-based salespeople. Among those who market their homes, putting up a sign in the yard is the most popular marketing method. This was closely followed by third-party aggregators, such as Zillow and Redfin, with 24%, and then word of mouth, with 22% of FSBO sellers relying on friends, family and neighbors to market their properties. It makes sense that FSBO marketers who tend to be more cost-conscious would prefer more affordable marketing methods.
However, there is a big problem with these methods, as demonstrated by our next FSBO fact. While FSBO sellers rely heavily on yard signs and word of mouth to market their homes, that's not how buyers find homes. A recent survey of homebuyers found that 37% of buyers believe that online sites are the best way to find a home. By comparison, almost no buyer found homes for sale through a garden sign only 6% or through friends, family or neighbors only 7%.
That makes sense considering that most shoppers look for listings on major MLS-powered sites. And, unless the seller orders a flat-rate MLS package, buyers won't find FSBO listings on them. Another way to find buyers? incentives. However, 85% of FSBO sellers don't offer buyer incentives, compared to 65% of salespeople assisted by agents who don't offer incentives.
And as we mentioned earlier, buyer incentives offered by FSBO sellers tend to cost them more than those offered by agent-assisted sellers. Lack of buyer incentives is likely to lead to fewer offers, especially if you sell in a buyer's market. While buyer incentives aren't the most important aspect of selling a home, they can tip the balance in your favor if buyers are considering several similar properties. Getting the latest statistics from the FSBO can make you better informed about the approach you want to take when selling your home.
And I hope they give you a good idea if FSBO is right for you. But they'll never take the place of getting feedback from a real estate agent who really knows your area. If you're interested in talking to an agent about the best way to sell your home, but still want to save on real estate fees, Clever is worth a try. Our free, no-obligation service connects you with a local, full-service agent for less, so you can save money while making an informed decision.
Maybe, but most of those who try it eventually give up. Only 8% of homeowners successfully sell FSBO. This is likely because FSBO homes sell for about 26% less on average than agent-assisted homes, while also requiring the homeowner to do most of the work, such as displays, presentations, and paperwork themselves. Selling FSBO comes with many challenges.
You'll need to prepare the house for sale, take care of much of the paperwork, price it properly, market it and negotiate with interested buyers. All of this work is why one of the biggest challenges FSBO salespeople face is simply trying to find the time to do it all. Learn everything you need to know if you sell your home for sale by owner. Enter your zip code to see if Clever has an associate agent in your area.
If you don't love your Clever partner agent, you can request to meet with another or shake hands and go in a different direction. We offer this because we are confident that you will love working with a Clever Partner agent. Approximately 7% of homes are sold by the owner. But they only represent ~ 5% of the total sales value of homes sold.
While selling your home yourself, without involving a seller's agent, may seem like a great way to save money on a commission, the fact remains that most prospective homes for sale by owner (FSBO) are a headache. Mobile or manufactured homes accounted for 9% of FSBO transactions, compared to 2% of agent-assisted sales. Those vendors often put up signs in their front yards that say, “Sold by Owner” and therefore the name. In addition, 6% of FSBO sales are in vacation areas or resorts, compared to 3% of agent-assisted sales.
The South region accounted for 45% of home sales in the first quarter and experienced a 20.1% increase in annual home prices (compared to 14.3% in the previous quarter). However, statistics show that FSBO homes tend to sell for about 26% less than agent-assisted housing, often negating any savings in commissions. If you ever want to engage in a lively conversation with any real estate agent, ask them what they think of For Sale By Owners. Data suggests that FSBO homes spend an average of one week in the market, compared to three weeks of agent-assisted sales.
Homebuyers are willing to buy a home that the landlord advertises for sale, but since those homes are often not in the MLS, they don't know where to look for them. Believe it or not, many homes for sale by owner still believe that all they have to do is put up a “For Sale” sign in the yard and the world will make its way to their doors. If, like them, you know the intended buyer of your home, the sale by the landlord could be a reasonable option. It's not that homeowners who sell their homes themselves sell them for less money, but that homeowners who sell less expensive homes (mobile homes, manufactured homes, condos, and single-family homes in rural areas) are more likely to choose to sell their homes themselves, For Sale by Owner.
When you sell on your own, others can make sure to exploit every little mistake you make and you become the target of lawsuits. . .