Using a real estate agent to buy or sell a home is so old-school. Here are some obvious reasons why you might want to be a FSBO (For Sale By Owner) seller or buyer.
For a Seller:
- Save agent commissions, usually 6% of the sale price of your home
- Elimination of the “middleman” in the deal often leads to smoother transactions
- You don’t have to use that mind-numbing paperwork that Realtors© want you to use
For a Buyer:
- Get the same home you would have gotten with an agent for 6% less, since the seller does not have to factor commissions into their price
- Save yourself the torture of driving around in a car with an agent you hardly know
- Understand your purchase since you won’t have to use the complex, complicated real estate forms
Let’s talk about the money for a minute. There are over a million FSBO transactions nationally each and every year. If the average sale price of those transactions was $300,000 then those FSBOs kept 18,000,000,000 (yes, $18 billion) in their pockets rather than paying that money out to real estate agents. So, do the math: if you plan to sell your home for $500,000 do you really want to price your home $30,000 higher so that you can pay commissions?
Once a buyer works with a real estate agent, they have committed the seller of the property to pay their agent in the deal. Does that make sense? If the buyer’s agent is helping the buyer, why is the seller paying commission to the buyer’s agent? It’s all a game so that Realtors© can tell clients “Don’t worry, you won’t pay anything for my service.” What they fail to tell clients is “I get 3% of the sale price of the home, meaning you will actually pay 3% more than you have to for any home so that I can get paid.”
And, now let’s talk about those forms that you won’t have to use if you are a FSBO. The Purchase Contract is well over 10 pages of microscopic print. The forms are complex and confusing. An agent will tell you that they are written to “protect you”. But, in reality, they are written to protect agents and brokers. Browse the forms and you will see that you are waiving various rights to legal action, you are holding agents and brokers harmless, you acknowledge that the agent/broker does not know appropriate pricing for your property, etc. Does that sound like you are being protected?
Luckily, there is an option in The Valley. Meet fsboTECH. We have simplified the buying and selling process, capping it off with a Purchase Agreement that is only 2 pages and written in everyday language, not legalise. So, go ahead, give selling on your own a try. You’ll be glad you did.