Are You Really Saving Money by Selling FSBO
Are You Really Saving Money by Selling FSBO?
In the example below I am going to lay out cost scenarios on a typical $200,000 home
APPLES TO APPLES
Often times sellers see the “6% Commission” figure and think they will save money by eliminating the agents. Let it be said, everyone wants to save money. Now lets dig into the real numbers to see exactly what if anything you might be saving and see if all the extra work and headaches are worth the process.
The first common element we need to look at that applies to both situations is that regardless of FSBO or Agent transaction, you are going to pay the 3% to the “buyer’s side agent.” We have said that over 92% of buyers have an agent and the majority of the remaining 8% are bargain hunters looking for a deal which will net you less money!
That leave us with a 3% commission that you would pay an agent to list your home, get it under contract, and close the deal. Remember agents don’t get paid unless the deal gets closed so there is an investment here for the agent without a guaranteed return.
3% Selling Agent Commission on a $200,000 home is $6,000
Typical Costs associated with FSBO Selling (yours may be less or more depending on your motivation to sell)
1. Flat fee MLS listing: $200-$800 depending on the service that you choose
2. For Sale Signs and directionals: $100
3. Internet/Print Advertising $100-$1000
4. Professional Photography $200-$500 (This is what I spend on all my listings for photography, #1 place not to skimp)
5. Professional measurement and rendering of your floor plan $150 (Dont rely on tax records for square footage, they are always wrong!)
Additional costs you don’t think about
Every month your home sits on the FSBO market unsold you continue to pay for your mortgage, taxes, insurance, utilities, and home maintenance. On average these costs will run you a total of about $2,500-$3,000 per month on a 200k home. You don’t see these costs on the closing statement but you pay them while your home sits unsold and they are real costs.
As you can see it doesn’t take long to actually spend more going the FSBO route as opposed to hiring an agent to sell your home and unless you enjoy working 2 jobs, selling a home is a full-time endeavor.