Selling a house can be a stressful situation. You must constantly keep your house clean and be ready to leave at a moment’s notice if a prospective buyer wants to tour it. A realtor can be invaluable in selling a house, but some people prefer to go it alone.
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The website, Clever Real Estate, recently analyzed data from 234 home sellers who did not hire a real estate agent to sell their homes. The survey showed a variety of reasons why these sellers chose for sale by owner (FSBO) for their situation.
These are the top five reasons people choose to sell without an agent.
To Save on Realtor Fees and Commission
Commissions and fees can cost a house seller thousands of dollars in profit. That’s probably why 30% of respondents listed it as their top reason to opt for FSBO with a house sale. However, some sellers shared they turned down what was their best offer while trying to sell their home.
Interestingly, Clever also reports that 80% of people didn’t know the average commission. The typical commission realtors charge 5-6% and it can take a painful bite out of sale proceeds. Clever states that commission amounts to over $12,000 in lost earnings when hiring an agent. That seems stark, but it pays for itself in most instances.
“Sellers who used an agent earned a profit of $207,500 — $79,000 more than the $128,500 sellers who did not use an agent made,” said Clever.
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To Sell the House Quicker
Coming in a close second is time, with 29% of respondents wanting to reduce time on the market. The median time for a house to be on the market was 55 days as of September 2024.
People opting for FSBO want to reduce that eight-week lag time. With 26% of those surveyed reporting needing fast money, it’s no surprise to see time on the market as an issue. “Those who did not use an agent (24%) are 2x more likely than those who did (11%) to sell their house in less than one week,” said Clever. However, sale time is highly dependent on a variety of factors and doesn’t include realtor expertise.
I Prefer to Handle Showings Myself
If you tend to be independent-minded, you might align yourself with 27% of those polled in preferring to handle showings and negotiations independently. But, opting for FSBO results in a lot of work that sucks up a lot of your time and energy.
In fact, Clever reported, “50% of unrepresented sellers say they felt overwhelmed when selling their home.” This can result in losses of tens of thousands of dollars.
My Home was in Bad Condition
While a homey, lived-in feel may work for now, the need for updated paint, flooring or bathrooms could get your house labeled in bad condition. That is why 28% of respondents chose to sell a home themselves instead of making upgrades. “Bad” is relative, but a fresh view can keep prospective buyers from providing a competitive offer.
If you can stomach the cost, a realtor could help make that ‘bad’ house look better.
I Had a Bad Experience With My Last Agent
Trust is a big issue for home sellers, with 24% and 23% of respondents, respectively, saying they either had a bad experience with an agent or don’t trust agents. Others reported their agent botched the sale or were just in it for the money. Of the respondents, 35% said an agent totally failed them.
Is it a Good Idea to Go Without a Realtor for Your House Sale?
Selling a house is a major decision. It’s likely your largest investment and it’s understandable to want to reduce expenses with the sale. Choosing FSBO does put you in control, but it comes at a cost. Realtors often bring market expertise and know what buyers want. This insight can result in better offers and more work off your plate.
Furthermore, Clever reported, “80% of sellers who did not use an agent have regrets about their home sale, with sellers most likely to wish they had received more offers (24%).” Worse yet, many who select the non-traditional route often make legal mistakes that can cost them money.
If you’re diligent, have the time, and have some legal knowledge, you may benefit from selecting FSBO for your house. But, if maximizing profits is of paramount concern to you, it’s often beneficial to consider hiring a realtor.
This article originally appeared on GOBankingRates.com: 5 Reasons People Sell Their Homes Without Real Estate Agents — Is it a Good Idea?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
