|Why for sale by owner will cost you more|
|If you have been watching summer home sales sizzle, and you’re thinking about selling your own home this fall, you might be tempted to do a For Sale By Owner. Most people think they will save money, since they won't have to pay a real estate commission. That assumption is false for two reasons.
First, you’re unlikely to save money because your home is unlikely to sell for its potential maximum price. The National Association of Realtors found that a typical FSBO-sold home sells for $210,000, but a typical agent-sold home sells for $249,000 ($39,000 more).
Second, while you won’t have to pay an agent to list your home, if you want to find the most buyers, you’ll have to pay a commission to the agent representing the buyer, unless you also find a buyer that does not have an agent. Today, that’s rare; our FSBO sales make up less than 10% of all home sales.