Benefits and Drawbacks of Listing with Agent and FSBO (2022)
The long-tailed keyword, "Best way to sell your Home by Owner" is searched upon about 50 times per month on average here in Metro Atlanta according to the Google Keyword Tool. In fact, home owners use several variations of that term in their searches regularly, making it clear that there is a good amount of interest in the best way to sell one’s home without an agent. Still, transactions involving homes for sale by owner have accounted for only around 4 - 6% of total monthly listings nationally and only 7% of recent home sales successfully used this tactic according to industry resources.
As meager as those results are, given the many resources available to help sellers sell their own homes, there may still be some interest in knowing some of the benefits and drawbacks that others have encountered with both tactics along the way to selling their home, perhaps to help them decide on their own path forward along the way to the next chapter.
First, please know that this writer gets it, having sold properties by owner in Florida, New Jersey and Tennessee before buying and becoming licensed as a real estate agent here in Georgia years ago. So these thoughts are founded in thorough research, both from industry resources and by having the experience first-hand.
Selling by Owner and with a Listing Agent
Going the For Sale by Owner (FSBO) Route
Benefits of Selling FSBO
The opportunity for a greater net return on the sale is the one most cited because of the potential for low or no commissions involved in the transaction. Of course, the feeling of more control over the entire transaction is another factor along with increased privacy throughout the process often weighs heavily into the reasons why others have sold their homes FSBO. Those sellers who overcame the following drawbacks often have done so safely, successfully closing on many a real estate transaction involving their own home (look at me if you want), but it is still wise to become familiar with the potential pitfalls of this home-selling tactic.
Drawback of Selling FSBO
You should know well how to be safe when letting others into your home and, therefore, will be spared the whole “who are you letting into your home” routine. Another fun one is the agent who shows up for their appointment with a stack of forms three-plus inches tall in an effort to frighten you into signing up assuming there’s no way that most owners could possibly know the appropriate document to use with a buyer who comes along. Also watch for the actress agent who manages to summon up a few tears in your foyer in an effort to get your signature on a listing agreement. Of course, the risks involved in selling a home by owner are real, including the scam artists with their alternative purchase offers, an inability to attract real qualified traffic, exposure to legal liability and others, but you manage through those while we return to the facts, shall we?
Research shows that FSBO homes usually market at prices that are lower than properties sold by listing agents, a fact also supported here in the Metro Atlanta Analytics, when attempting to arrive at a selling price. Not only did those sellers leave behind thousands of dollars in equity, but their former community then had to experience reduced home values since those lowball sales were captured in appraisals for the next few months, making refinancing and sales more difficult.
Using a Real Estate Agent to list a Home
Benefits of Listing with a Real Estate Agent
In addition to what is obvious, that owners typically sell for more and thus make enough in a greater return, indeed plenty to afford and offset commissions associated with the transaction when selling through an agent, sellers also typically sell their homes faster with greater peace-of-mind that the property remains sold and that the sale was properly closed in a way that eliminates the likelihood for post-sale legal actions. Further, unlike with FSBOs that are typically sold in rural communities among persons who are familiar to one another, the opportunity for offers above list price increases because exposure of the property to a greater pool of candidates including cash buyers through GA MLS and other Metro Atlanta MLS Listings of Homes for Sale where cash buyers and others shop for property. Then there’s the entire team of real estate professionals, including the brokers, Georgia Real Estate Commission and Appraisers Board, all working diligently on your behalf to ensure that a fair and honest transaction took place, one that aligned with the wishes of all involved parties.
Drawbacks of Working with a Real Estate Agent
Of course, those benefits add expenses to the transaction and can, indeed, make the sale of a home through a listing agent less practical given mortgage balances and other required selling fees. Further, the entire experience can fall short of expectations when poor communications between the client and agent fail to address expectations, explanations of procedures and more. Please also keep in mind that Georgia Real Estate Brokers and their associates, by virtue of licensure, are held to the highest of standards and accountability through industry membership organizations, state laws and their own senses of responsibility despite public perception. There are some things that they must do when listing your home for sale and are prohibited from engaging in others, some that an owner may consider doing to attract a ready and willing buyer. Granted, agents are among us who are desperate for income in this limited inventory market, but those of a higher standard of integrity who will have none of that will quickly walk away from an opportunity to serve when it their ability to earn an honest living is potentially compromised.
FAQs on Selling FSBO versus with a Real Estate Agent
Can I sell my own house?
You can sell your own house with the required skills, including communications, marketing, time management, customer service and more. The property will need to be available for showings, you’ll need to properly disclose defects, use complex forms, interpret offers and have service providers handy, but it can be done.
How can I find out how much my house is worth?
Consider the use of a few automated valuation models (AVMs) that serve as home value estimators, being mindful of their reputation for variances versus actual home selling prices. As self-serving as it seems, the best free option for a suggested list price is through an experienced local agent.
Can I sell my home after 1 year of ownership?
You can sell your house immediately after purchase provided the fees involved in doing so are affordable. But all too often, the fees associated with such a sale make it impractical to sell a home before the value has reached a point that will fully absorb those expenses.
Summary
There you have it, the benefits and drawbacks of selling your Metro Atlanta Home with a real estate agent and by owner, according to one who has sold homes both ways. Would I sell again by owner? I would consider selling again by owner in the future because of my familiarity with the entire process, industry, closing attorneys, paperwork and methods of attracting qualified traffic, having done it for so many years. The vast majority of homeowners, however, are different, attempting to tackle this enormous venture on their own with limited experience, resources and patience, completely oblivious to the potential pitfalls that frequently lie ahead. But since this article is not about advising unrepresented sellers on the right tactics to use in their home sale or me for that matter, I humbly wish all sellers the very best in the sale regardless of their tactic of choice. Should you decide to sell your home with a Metro Atlanta Listing Agent, please call me directly at (770) 271-2156 for more information how to sell your home fast and for more. After all, I am deeply committed to getting you more.
