Choosing to sell her Clarkston, Michigan home of 25 years without a real estate agent, Jill Langen successfully secured a buyer within a week. This approach is relatively uncommon among home sellers in the United States, with only 6% opting for for-sale-by-owner (FSBO) transactions last year, marking a historic low. The National Association of Realtors (NAR) reported these figures, reflecting the dominance of traditional real estate sales methods. However, recent legal challenges to standard commission practices have some homeowners reconsidering the role of real estate agents.
Langen, a 61-year-old higher education administrator, cited these industry changes as a major factor in her decision to bypass a Realtor. Despite new regulations, most home sellers continue to pay a commission fee, typically ranging between 5% and 6% of the sale price. For Langen, listing her home at $515,000 meant saving potentially up to $30,900 in commission fees by avoiding traditional real estate services. This potential for savings appeals to some, yet FSBO sellers often face lower sale prices, with FSBO homes averaging $380,000 compared to $435,000 for agent-assisted sales.
Langen’s decision was informed by prior real estate experience. She and her husband had recently purchased a new home in Denver through a Realtor. Empowered by this experience, Langen meticulously prepared for the sale of her Michigan property. She captured photos during the spring season, selected a competitive listing price based on local market data, and advertised with flyers and online listings crafted with the help of AI technology. Her efforts led to multiple offers, and she finalized a deal with an unrepresented buyer, thus avoiding further commission fees.
Yet, not all FSBO ventures are smooth. Aditya Srinivasan, a retiree relocating from California to Oregon, faced challenges with his FSBO attempt. Overwhelmed by potential scammers and unreliable buyers, Srinivasan ultimately chose to employ a trusted Realtor, illustrating the complexities and potential pitfalls of managing a home sale independently.
The Bigger Picture
The experiences of Langen and Srinivasan highlight the diverse outcomes of FSBO transactions and illuminate the considerations involved in selling a home without professional assistance. For homeowners, the allure of saving on commission fees must be weighed against the extensive effort and expertise required to manage the sale process effectively.
Communities with high buyer interest and low inventory, like Langen’s, may offer favorable conditions for FSBO success. However, the challenges faced by Srinivasan underline the importance of preparedness and caution, particularly in navigating scams and unreliable proposals. As industry practices evolve, homeowners may increasingly explore FSBO options, potentially reshaping real estate dynamics.
