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When it comes time to sell a home, many people consider the idea of doing it themselves. The reasoning usually comes down to money because a 6% realtor commission seems like a lot. It is true that a $300,000 house has a commission of $18,000. The idea of saving $18,000 is definitely a reason to look at your options.

The problem is that selling a home is hard work and takes some very professional knowledge that the average homeowner simply doesn’t have. That is why only about 10% of FSBO homes sell. The rest of the FSBO sellers, a full 90%, either give up or eventually sign with a realtor.

There are many things you can do to increase your odds, but these include hiring professionals to help you in areas you may have deficiencies. The more of these you consider, the more likely you are to succeed.

Let’s take a look at a FSBO home to see the costs associated with success. Our example home is selling for $300,000. During the time on the market, our seller will have to deal with the following:

  • 40 phone calls from prospective buyers
  • 10 showings
  • 24 realtors who want to list the house

Additionally, we are going to assume that the seller’s time is worth $25 per hour. Keep in mind that these numbers can vary greatly, but they do represent a typical FSBO sale.

Will You Need Experts?

The answer to this question is usually yes. At the very least, you will want to hire an attorney and a home stager. Here’s why.

The legal end of selling a home has gotten very complex. Texas has their own rules and regulations to follow. There are certain things you have to disclose to potential buyers including anything that will affect the value or desirability of the property. When it is time to create the contract and go through closing, there are even more legal requirements. Getting any of this wrong can lead to not just the loss of the sale but to court costs.

A home stager will be essential to help you see your home as a buyer will see it. They will be able to point out items that may be issues when trying to sell your home, as well as give your home a quick facelift using strategies that make it feel more open, spacious, and inviting. Finally, listening to a home stager’s opinion will help you price your home correctly.

  • Attorney = $200 per hour x 3 hours = $600
  • Home Stager = $100 per hour x 2 hours = $200
  • Total For Experts = $800

Marketing Is Not Free

Marketing your home is key to selling it quickly. Online marketing is essential since 95% of buyers search online for homes to purchase. Although free sources are available, such as your own social media and free classified sites, the traffic for an actual buyer can be slim. There are many FSBO services that offer online marketing packages. Those wanting to sell their home would be wise to consider signing up for a service. Doing so usually takes about 3 hours of research and sign up time.

You will need to include good photos of your home, both inside and out. How your home looks in your marketing material creates a first impression. You’ll want to be sure to get the right angles of your rooms and the right lighting. Photos should be crisp, clear, and inviting. Taking photos of your home will take approximately two hours of your time. Since photos are so important with 90% of buyers seeing your home for the first time online, you may want to consider hiring a photographer. Even if you do this, you will spend about an hour on the photo shoot and about an hour choosing which pictures to post.

Online marketing via a website isn’t the only kind of marketing you will need. There are classified ads, social media ads, leaflets, and signs to attend to as well. Creating and buying what you need will take approximately 3 hours.

  • FSBO Online Service = $1,000 + 3 hours of time at $75 = $1,075
  • Marketing Materials = $200 + 2 hours of time at $50 = $250
  • Professional Photographer = $200 + 2 hours at $50 = $250
  • FSBO Yard Sign = $50 + 1 hour of time at $25 = $75

Time Spent on with Buyers, Paperwork, and Phone Calls

Selling your home will take a lot of time. Our example house has 40 phone calls from potential buyers. If you spend 30 minutes on each call, you will have 20 hours invested in phone calls. Of those phone calls, 10 will make an appointment to see your house. You can assume that each person will take one hour for a total of 10 hours. Once you have a potential buyer, you should plan on at least 4 hours of paperwork and negotiations. In the midst of all of this, you will need to respond to the agents wishing to show your property. If you give each agent 15 minutes, you will spend 6 hours.

  • Phone Calls From Potential Buyers = 20 hours x $25 = $500
  • Showing Property = 10 hours x $25 = $250
  • Paperwork and Contract Negotiations = 4 hours x $25 = $100
  • Dealing With Realtors Who Want To List = 6 hours x $25 = $150
  • Total Spent with Buyers and Agents = $1000

Total Costs and Potential Losses

Now it is time to add up everything and you will see that the total cost to do a FSBO is about $3,450. Yes, it is considerably less than the $18,000 you would spend with a traditional real estate agent, but you have to remember that your chance of success is just 10%.

Of course, Recadia’s flat fee, full service real estate model which provides all the services you would expect from a traditional real estate company for a flat fee of only $4,000 might be a better option. Not only will your chances of selling greatly improve but you will also save yourself the hassles and potentially wasted expenses of selling on your own for virtually the same cost.

If you choose to sell your home FSBO, be sure that you understand the true costs of selling a home yourself as well as the potential losses you can incur. It is entirely possible to spend more money selling your home on your own than paying a professional agent, especially if you choose Recadia with our flat fee, full service offer.

This example may not fit your exact situation, but it is representative of FSBO sales. Before choosing to FSBO, I recommend that you look over these items and determine which ones you are willing to pay for. If you are having trouble deciding what you should pay for, reading two other articles on FSBO might be helpful. 4 Things Every FSBO Seller Needs to Know to Be Their Own Real Estate Agent explains in greater detail the role of a real estate agent and what you will need to do on your own. 4 Unexpected Challenges When Selling Your Home FSBO will help you see some pitfalls that occur as a FSBO seller. You will also want to determine how much your time is worth. Then, do your own calculation for your own FSBO sale.

Finally, you may wish to learn more about Recadia’s model by reading How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions. This will help you determine if the savings are worth the risk. If you have questions or would like to discuss this further, please call Recadia at (214) 281-8500. We would be happy to discuss your specific situation with you and show you how we can sell your home quickly, with little hassle, and put more money in your pocket.