FSBO Misconception: 46% of Sellers Wrongly Believe It's Best

rea investing real estate business real estate market 2024 real estate news real estate news 2024 Nov 21, 2024

Why Hiring a Real Estate Agent Might Be Your Best Bet When Selling Your Home

When it comes to selling your home, you might be tempted to go the "for sale by owner" (FSBO) route, believing it will save you money and maximize your profits. However, recent research from Clever Real Estate suggests that this might not be the best approach. In fact, using a real estate agent could lead to higher profits, despite the initial costs.

The Common Misconception

A surprising 46% of home sellers believe that selling their property on their own is the most financially advantageous option. This belief is further supported by the notion that hiring an agent is the most expensive route, as 69% of sellers think so. However, the data reveals that those who worked with agents often secured better sales prices, ultimately leading to greater profit margins.

The Benefits of Working with an Agent

The survey indicates that a staggering 77% of recent sellers chose to work with a real estate agent, compared to only 10% who opted for FSBO. Many sellers appreciate the benefits that come with professional assistance: 58% found it the easiest way to sell, while 40% considered it the quickest. Furthermore, nearly three-quarters of sellers (73%) believe that hiring an agent is the best overall method for selling a home.

Among those who used agents, a significant 76% felt that their investment was justified. In contrast, 38% of FSBO sellers believed they could have achieved a higher sale price had they enlisted professional help.

The Challenges of FSBO

While some sellers view FSBO as a cost-effective option, the reality is that it can be quite challenging. Two-thirds of sellers (66%) consider FSBO the most difficult method to sell a home. Opinions are divided: only 12% of past FSBO sellers think it’s the best way to sell, while 24% label it as the worst. Even among those who tried FSBO, only 47% would recommend it to others.

Cash Buyer Companies: A Risky Choice

Interestingly, selling to cash buyer companies is perceived as the least profitable option by 44% of sellers. Many sellers harbor skepticism about these companies, with 61% labeling them as scams. This sentiment is echoed by the fact that 27% of those who sold to cash buyers expressed regret about their decision.

Prioritizing Profitability

For many sellers, the primary goal is to achieve the highest possible sale price, with 48% ranking this as their top priority. This focus on profit makes it crucial to reconsider the misconceptions surrounding agent fees, as they may be hindering sellers from maximizing their returns.

Final Thoughts

The findings from Clever Real Estate highlight the importance of re-evaluating your selling strategy. While FSBO may seem appealing, the evidence suggests that working with a professional agent can lead to a more profitable and efficient selling experience. As you navigate the home-selling process, keep in mind that hiring an agent might just be the best decision for your financial future.

For further insights, check out the full report from this sites