The Benefits of being a For Sale by Owner in 2021

The Benefits of being a For Sale by Owner in 2021. In May 2012, an article was published in the Economist with the title “The great realtor rip-off, Why is it so expensive to buy or sell a house in America?”  The majority of brokers are still charging the same 6% fees all these years later. One way to get more money for your home is to skip the agent and sell it as a for-sale-by-owner.  Technology has made the independent seller route a whole lot easier, and with potential savings of up to 6% of your sold price, you could save a huge amount of your home equity. Before you go the old-fashioned route, discover the benefits of For Sale by Owner homes.

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1. About 25% of homeowners already sell as a for sale by owner without full service agents

Statistics from the National Association of Realtors indicate that only 8% of sellers are going the FSBO route, and they state there has been a decline in FSBO’s over the years. However, their statistics don’t tell the true picture because they groups all sellers who are assisted by an agent together. The Benefits of being a For Sale by Owner in 2021 are numerous. For example, if a For Sale By owner uses a service like Richr to list their property on the MLS they can do so by listing it on the MLS for free, and only pay $499 at closing, which includes title settlement fees. The NAR groups cannot truly identify for sale by owners because they are not identified accurately with those who have chosen to use full-service agents and who have 6% commissions. This skews the statistics and size of the FSBO market.

Surveys from Redfin published in 2016 show that it is actually 25% of sellers who sell without a full-service agent, 15% using a limited services agent like Richr. Sales without full-service brokers have in fact increased over the last 15 years. This means that a huge proportion of sellers already realize the benefits of for sale by owner homes.

2. For Sale by Owner (FSBO’s) can harness the same marketing power as an agent, for FREE

Before technology made it simple for anyone with a computer or phone to search for their own property, it was harder to market for sale-by-owner properties. But times, they have changed! By using a company like Richr, homeowners can use the MLS to get their homes in front of the same buyers that traditional brokerages can. Richr allows you to access the same buyers, but without paying a seller’s broker fee. As the MLS syndicates to the main sites searched by 90% of buyers, FSBOs can get their homes in front of almost everyone!

3. FSBO properties priced according to market value will sell

If you fail to price your home well or market it properly, it may sit without interested buyers. The same is true if a broker lists a property too high at a home-owners direction.

It is vital to price your home in line with market value. If you’re in a hurry to sell, take that into account when you choose your sale price and list at the lower end of your acceptable range to garner interest. If houses are in high demand, maybe list at the higher end.

4. FSBO’s can sell for the same price as broker represented properties

Brokers argue that they can get more money for a home, thereby validating their worth. However, an article published by the National Bureau of Economic Research stated in 2012:  “Our central finding is that a seller’s use of a broker reduces the selling price of the typical home by 5.9 to 7.7 percent, which is consistent with the presence of a fairly severe principal-agent problem.” 

The Benefits of being a For Sale by Owner in 2021 have shown that current market values are likely to sell for a fair price, whether there is broker representation or not. So long as you have negotiating confidence and market knowledge, and use Richr to save 3 to 6 percent brokerage fees, you should walk away from the sale with more money in your pocket.

5. Unrepresented buyers will consider your home, whether there is an agent or not

Buyers want to buy a home that meets their needs. If your home does, they will look at it and consider buying irrespective of agent representation. However, buyers do want to know that the legal elements of the deal will be dealt with properly. That’s why Richr recommends both parties engage an attorney to represent their interests in the transaction, and take out title insurance on the property.

6. Agents will bring their buyers to see your home

While real estate agents’ goals are to make money, their job is to help people find houses that fit their needs well. This means they will show FSBO houses that meet the client’s needs, as long as the potential for the commission is there. Richr recommends that sellers offer a fair commission to buyers’ agents to incentivize them to show FSBO listings, and sellers still save by not paying a seller’s agent fee.

Selling a home as a for-sale-by-owner is easier now than it has ever been. The benefits of for sale by owner homes are huge. Utilizing technology and being realistic with expectations and pricing will help you sell quickly and for a good price. Don’t fall victim to FSBO myths, because FSBO can be a rewarding and successful process! Start your selling journey by listing your home at Richr, for FREE.