Realtor vs. FSBO: The Advantages of Working with a Professional

If you’re thinking of putting your home on the market, you may be wondering whether you should work with a real estate agent or sell it yourself in a For Sale by Owner (FSBO) deal. Here’s what you need to know before making your decision.

Talking the FSBO Talk

In the real estate business, selling your home yourself is known as a For Sale by Owner (FSBO), often referred to as “fizz-bo” by industry insiders. While FSBO can seem like an easy way to save thousands of dollars on real estate commissions, the reality is not as simple as it appears.

How FSBOs Work

When a home is sold, the homeowners typically pay up to 6% of the selling price as a commission to their real estate agent. The buyers’ real estate agent also receives a percentage of the selling price. With a FSBO deal, the homeowners sell their home and keep the 6% commission. While the homeowners are expected to pay a standard percentage to the buyers’ agent, many choose to pay only a small commission or no commission at all, which has cast a shadow over the FSBO industry.

The Truth About FSBOs  

While some homeowners with legal or real estate experience are able to conduct FSBO deals smoothly and easily, many individuals don’t have the necessary skills to navigate and negotiate a real estate transaction. As a result, many professional real estate agents have endured challenging FSBO experiences, so they may be less likely to recommend or show your home to their clients because of the potential headaches and risks.

Get the Best Price for Your Home

While FSBOs may look good on paper, a professional real estate agent can actually put more money in your pocket. Many homeowners make the mistake of overpricing their home, which can cause it to linger on the market and eventually require one or more price reductions. Armed with a thorough understanding of the local real estate market, your real estate agent can help you determine the right price for your home so it sells quickly for the highest possible amount.

Save Time and Reduce Stress

Marketing and selling your own home requires a significant investment of time and emotion. Professional real estate agents can save you countless hours of valuable personal time and minimize stress, as they’ll stage and market your home. They’ll also tap their network of serious, pre-qualified, and pre-approved buyers, arrange the showings, answer questions, and share any constructive feedback with you. When a potential buyer makes an offer, your agent will evaluate the offer and negotiate fees and other costs on your behalf.

Making FSBO Work for You
If you’re committed to selling your own home in a FSBO deal, make sure real estate agents know that you’ll pay a commission to the buyers’ agent. Prepare an agreement that clearly states the percentage you’re willing to pay. Be sure to have the proper disclosures and other paperwork for your home to avoid being held liable for negligence, fraud, or breach of contract.

Let Cambria® Mortgage™ Help

If you’re also in the market for a new home, your Cambria Mortgage expert can explain the various mortgage programs and help you decide which one is best suited to your needs. For more information, visit or call 952-942-0110.

Countdown to a New Home

Thinking of buying a new home? The experts at Cambria® Mortgage™ can help you streamline the process, make the right decisions, and enjoy a smooth, stress-free experience.

Why Using a Realtor Will Pay Dividends

Buying or selling a home is among the biggest decisions you make in life. With so much on the line, it makes sense to work with professionals who have a wealth of information about the process from beginning to end. Not only do realtors have vast knowledge about the market trends driving prices and sales in your area, but they also have access to an immense network of other professionals and potential buyers. When it comes to marketing your home and working through the details of an offer, realtors can be trusted to present your home in the best possible light and negotiate a deal that’s right for you and your family.