Why Selling Your Home Yourself Makes More Sense Today Than Ever Before
For a long time, selling a home without an agent was difficult for one very simple reason: agents controlled most of the tools needed to sell a house.
They controlled access to buyers, listing information, market data, advertising and much of the process.
That's simply not as true anymore.
Look at what's happening in the real estate industry right now. Brokerages, MLS organizations, and other industry players are fighting over how listings can be marketed, where they can appear, and who gets access to them. The latest CRMLS/Compass dispute is literally about the rules governing the public marketing of listings outside the MLS.
Meanwhile, homeowners have more ability than ever to reach buyers directly.
Buyers are online. They're on real estate websites, Google, Facebook, Instagram, Reddit, neighborhood groups, and other platforms. A homeowner can take great photos, create a professional-looking listing, put up a yard sign with a QR code, promote an open house, share the property through social media and communicate directly with interested buyers.
Much of that costs little or nothing.
At the same time, the dollar cost of traditional commissions has become enormous.
Even if commission percentages haven't increased, home prices certainly have. A percentage that may have been manageable when a house was $200,000 or $300,000 becomes tens of thousands of dollars when you apply that same percentage to a $500,000, $750,000, or $1 million property.
That doesn't mean agents don't provide value. Good agents absolutely can.
But homeowners should ask a different question:
Which services do I actually need, and what are those services worth to me?
Photography? You can hire a photographer.
Staging? Hire a stager or consultant.
Marketing? There are countless free and inexpensive ways to market a property.
Pricing? There is more market information available to consumers than ever before, along with professionals who can provide valuations when needed.
Legal work and contracts? I would use a real estate attorney whether I had an agent or not. An attorney's job is to protect your legal interests, and their compensation isn't dependent upon the sale closing.
Even some services that sellers may not feel comfortable doing themselves can be purchased à la carte. You don't have to bundle everything together and pay a percentage of your home's value for it all.
And here's the part of FSBO that I think gets overlooked:
Trying FSBO doesn't have to be permanent.
Give yourself 30 days.
Price the home properly. Take good photos. Put together a real marketing plan. Make the property easy to see. Respond quickly to inquiries. Hold an open house. Get the listing in front of as many potential buyers as you reasonably can.
If it works, you may save tens of thousands of dollars.
If after 30 days you decide it's more work than you expected, or you're not getting the results you need, you can still interview agents and hire one.
You haven't given up that option.
I don't think selling by owner is right for every homeowner. Some people don't have the time, interest, or temperament for it, and some will simply prefer to hire someone else.
But I do think we're at a point where homeowners should stop assuming that hiring an agent is automatically Step 1.
Today, Step 1 can be asking: Can I do this myself?
With the technology, information, professional services, and direct access to buyers that homeowners have today, I think there's a stronger case for trying FSBO now than at any other time.
I'm curious what other FSBO sellers think. What part of selling yourself has been easier than you expected, and what part has been harder?