Reasons for Selling Home As A For Sale By Owner
| Did not want to pay commission fee | 46% |
| Sold it to a friend or neighbor/relative | 31% |
| Buyers contacted me directly | 7% |
| Agent was unable to sell home | 3% |
| Did not want to deal with an agent | 8% |
| Had a real estate license | <1% |
| Sold it to a home buying ocmpany | <1% |
| Other | 5% |
While the most frequently stated reason for selling their home by themselves is to save
the commission, in many instances, it isn’t 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
