Won't we save a lot of money if we FSBO instead of listing with an agent?

Given that more than half of buyers find their new home via an internet search, sellers sometimes ask why they need a listing agent.

Couldn’t the home-owner just pay to post their home on their local Multiple Listing Service and avoid giving a percentage of their home sale away?

This is referred to as a For Sale By Owner or FSBO.

Where Buyers Find the Homes They Purchase

As it has become easier to find a home online, we'd expect the percentage of home sales that are a For Sale By Owner to increase.

But in fact, that percentage has gone down.

FSBOs as a Percentage of all Home Sales

A successful For Sale By Owner tends to sell for a lower sales price than one that used a Listing Agent, especially when it is between a buyer and seller who already know each other.


Typical Sold Price FSBO vs. Agent

Listing Agents don't just Market your Home to Find you a Buyer.


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Conclusion

A successful For Sale By Owner tends to sell for a lower sales price than one that used a Listing Agent.

Also, Listing Agents don't just market your home to find you a buyer, they manage the whole transaction from list to closing.