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Approximately 20 percent of the houses sold in the United States each year are sales made directly by property owners without using a real estate agent. Selling your house yourself is commonly referred to as a For Sale By Owner, or FSBO ("fizz-bo"). The following sections describe the most common reasons why you might choose to sell without using an agent.
You want to save money on commissions
People who go FSBO often do so to avoid paying real estate agent commissions. The lion's share of house-selling expenses are typically real estate agent commissions, which can gobble a large portion of your house's equity. In most areas of the country, a 5 to 6 percent real estate brokerage commission is common.
You may have a buyer ready
If you spread the word that you're planning to sell your house, you may turn up someone who's financially able to buy and willing to pay you the amount you feel your house is worth. Why pay a full commission if you've already found a buyer? You're in a good position to either negotiate a reduced commission with a real estate broker or hire an attorney to help you complete your transaction.
You may know the house and neighborhood well
You may know more about the strengths of your house and neighborhood than local real estate agents do, especially if you've lived in the area for many years. You may be able to speak from personal experience about how child-friendly the neighborhood is and how terrific the local schools are. And you can point with pride to all the improvements you've made to your house over the years.
 | Be careful in praising your house and neighborhood. Even the most interested buyer can get turned off if you sound like a used car salesman. Also remember that what you say about your property may cause you legal problems down the road. If you're going to sell without a real estate agent, have a good real estate lawyer on your team to help with mandatory property transfer disclosures and to give advice about what you should avoid saying about your house. |
You may be more motivated than an agent
Your house and the money you have tied up in it are important to you. Some real estate agents may be less than eager to invest sufficient time in promoting and showing your property, regardless of the potential commission.
You like challenges
Some people don't take the easier path. For example, instead of working for a corporation, maybe you started your own business. Many small-business owners say that a bigger paycheck wasn't the primary reason they started their own businesses. Some entrepreneurs pursue this career path as a means of self-expression, to make a contribution to a particular field, or for the pleasure of working with and satisfying customers.
Some people try to sell their houses by themselves for the same reasons. Although most FSBO sellers are eager to save commission dollars, a few do it for the challenge, or because they want to apply their skills to selling their own house, or because they simply don't want to relinquish their control over the situation.
Your house may sell itself
If the local real estate market is strong, and good houses get multiple offers as soon as the For Sale sign goes up, you may feel that selling your wonderful house will be a snap. All things considered, FSBOs are usually more successful in a sellers' market than in a buyers' market.
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