Why Is It a Bad Idea to Sell Your Home on Your Own?

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Why are fewer and fewer people try to sell their homes on their own these days? Why is selling your home as FSBO a bad idea?

The NAR has been tracking the number of homes sold as FSBO since 1981, and this year was the third consecutive year where we’ve hit a new record low of FSBOs. From 2001 to 2008, FSBOs averaged about 12% of all home sales. Right now, we’re right around 8%.

Keep in mind, we’re in a seller’s market, so you’d think more people would be inclined to put their home on the market without an agent, but that’s not the case.

Fewer and fewer people are trying to sell their homes on their own.

I think there are three reasons behind this decline. First, FSBOs aren’t able to get the same price for their home. Also, the selling process usually takes a lot longer than they anticipated. Lastly, they typically have trouble with real estate contracts and the ever-changing laws included in them.

If you look at the average sale price of an FSBO home, it’s $150,000. That tells me that most of the FSBOs are in the lower-priced areas. In Virginia, Maryland, and Washington DC, you can’t buy much for $150,000.

If you have any questions about this topic or you’re thinking of buying or selling a home in 2018, don’t hesitate to reach out to me. I’d love to talk to you.