Going With An Agent Or FSBO – Which Is Better For Sellers?

Going With An Agent Or FSBO – Which Is Better For Sellers?

When looking to sell property, you can either go FSBO (for sale by owner) or go with an agent. There are advantages and disadvantages to both, but many are quick to reject the former. FSBO isn’t the best option if you have no idea how the industry works.

According to Grand View Research, the real estate industry isn’t slowing down any time soon. More so, they project the industry will be worth $4,263.7 billion by 2025. So with so much money in it, are you saving money by going FSBO or losing?

In this article, we will explain whether going with an agent or FSBO is better for sellers.

Difficulties Negotiating Without An Agent

There are two ways to look at this statement. The first is that you will come short when going against a pro that has been closing deals for a decade, and the other is that many buyers are discouraged from starting negotiations. If you have no idea how the industry works, then what you should know is that closing a deal is a complicated process.

There are so many things that go into a deal, from paperwork to legal matters. If you have no prior experience, then you’re not expected to know these things. So not only will you get picked apart by the opposing agent, but in many cases, they won’t even bother starting negotiations.

Due to the hassles, struggles, complications, and the fact that FSBO doesn’t give the opposing agent a commission, they won’t even try to talk to you. So you’re at a disadvantage from the very beginning. By going with an agent, you are incentivizing the opposing party to start negotiations since there is a guaranteed commission. Not only that, but an agent has the knowledge and expertise to handle the home selling process.

No Emotions Involved

No one sells their home without involving a few emotions in it. This is quite possibly one of the hardest things when going FSBO. Not only are you attached to the house and are reluctant to sell for any price, but you’ll most likely overprice it since it holds an emotional value to you.

In real estate, emotions take a back seat. No one is interested in them and neither should you. If you’re giving your house an emotional value, you’ll only lose potential buyers. When going with an agent, you take a back seat while they do all the work. Since they are professionals who know how to accurately price a house, they will recommend what the real price should be instead.

This gives you an advantage by being a fair seller. As a result, you will attract more buyers.

Selling Isn’t Easy

There is a reason why real estate agents exist. And that reason has to do with the fact that selling is very difficult. This is precisely why there is a person that does this job. It is a full-time job that requires spending hundreds of hours just to close a deal. So if it takes an agent a month of hard negotiating to close a deal, how long will it take an inexperienced seller such as yourself?

Like we said earlier, you are not legally required to go with a real estate agent. Buyers don’t need to hire agents but are encouraged to do so since agents are professionals that know how to do the job. If you’re a person that works 40 hours a week, when will you find the time to schedule open house visits or negotiate with opposing parties?

Everyone that plans on going FSBO should consider this a harsh reality. The main motive for going FSBO is escaping the 3-5% commission fee that agents receive when closing the deal. But for a small commission fee, you are getting a person that takes care of everything.

Agents Have the Connections

You might think that listing your property on a few realtor listing websites is easy, but that isn’t enough to sell. There is a reason why agents make thousands of calls each month. It’s because they have the connections in the industry that make it easier to get your property out there. It works in their best interest to sell your house fast. So what agents will do will offer your property to their clients and use their large, professional network to spread even more interest.

What this will do is not only get your property out there but spark competition. As a seller, it is your goal to get multiple buyers involved where they would bid for your property. If there is only one buyer involved, then there isn’t much room to negotiate. But if more buyers are interested, then you can seriously rack up the price. The only way to do that is by going with an agent.

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