Glenda Feeken - Come Live and Play on the Kenai

While the most frequently stated reason for selling their home by themselves is to save the commission, in many instances, it isnt possible to do that. In every home sale, someone earns the commission. It is usually the real estate agent who brings experience and expertise to the transaction. The seller might earn the commission but will do so at the expense of other business or personal activities assuming they know what to do. If an agent is not involved, the buyer might earn the commission because they take on the responsibilities of locating an acceptable home, securing the most advantageous financing, negotiating an agreement, arranging inspections, and becoming familiar with all of the necessary steps.

Obviously, it is impossible for both parties to save the commission. Since there is usually a surplus of homes on the market at any one time, the buyer is encouraged to continue his property search until he finds a seller that will sell the property for a reduced amount.

Selling a home to a friend or relative can actually have its own challenges because the buyer again is hoping to get a better deal due to the personal nature of the relationship with the seller. Unless the seller has a benevolent intention, the commission that is trying to be saved is given to the buyer.

It can be difficult for a homeowner to deal with friends or relatives with the objective of maximizing their potential equity. The benefit of a third party negotiator can be very helpful.

Sellers Net Less Cash in FSBO Transactions

Medial Selling Price
FSBO	$137,400
Agent Assisted	$175,000
Difference	-$37,600