When Should You Consider Listing For Sale By Owner?

Conventional wisdom has told us time and again that real estate is too complicated a landscape for the average homeowner. That FSBOs, or properties listed for sale by their owners, are doomed to fail. That you’re always better off with a professional real estate agent by your side when trying to sell your home.

It is certainly true that an agent’s input makes a huge difference in real estate for sale by owner. But every rule has its exceptions. Let’s look at a few scenarios where the FSBO route would make more sense.

The Demand for Housing is High

Perhaps you’ve noticed that the local market has more interested buyers than properties available for sale. This would be a classic seller’s market; named so because listings don’t tend to last long. And thanks to the high demand, sellers have all the leverage in the negotiations.

You will recall that a realtor’s biggest input towards a home sale is outreach — using their network and marketing skills to attract a great many potential buyers.
When you’re fishing in a crowded pool, you don’t need as much effort to create this kind of “pull”. That means you could pull off the sale without engaging an agent. Although, it’s likely that you won’t realize the highest possible profit in doing so.

You Already Have an Interested and Viable Buyer

Once again, you wouldn’t need the services of an agent if you’re lucky enough to bag a great prospect before listing. Perhaps it’s a neighbor who wants to merge your home with theirs or a friend’s friend who fancies moving into the neighborhood. Either way, the sale will only require you and the other party to come to an agreement. That means both of you could get by with just lawyers.

Just take caution to ensure that the other party is both interested and viable before taking the FSBO route. In essence, they should be able to follow through on the transaction in accordance with all terms, besides showing an inclination.

You’re Not in a Hurry to Sell

Property sales in normal markets — that is, outside the conditions listed above — take time. And that’s particularly true for real estate for sale by owner; when there’s no expert to do the legwork, it can take up to a year to realize the sale. By contrast, an agent might require 3-5 days to list your home, and then 1-2 months to get it sold.

Of course, a realtor’s input doesn’t necessarily guarantee a shorter time-frame. So if there’s no pressing need to sell your home quickly, the FSBO route might be worth the effort — you’ll get to keep a bigger share of the proceeds.