Why For Sale By Owner Homes Have Hidden Costs That Can Add Up?

The only logical reason for opting to go the FSBO route is to save money. In seller’s minds, they’re saving from the real estate commission that would be tacked onto the final selling transaction. They want to pocket the total earnings from their home sale and do so without anyone else involved. In the short-term, that mentality can make sense to a lot of people. But, it’s important to view the whole thing from a broader perspective.

Selling a house has a lot of costs and fees involved in the process. From printing out hundreds of documents for signing to advertising listings, here are some of the top hidden costs that definitely add up as a FSBO:

1. Advertising:

Between signs, fliers, and photography, paying for your own home advertising is seriously expensive. Sometimes, that’s not even enough, and you need to look at paying for an MLS listing, as well as Facebook advertising. By the end of it, you’re paying more for advertising than you would have in commissions – and it's consuming your time.

2. MLS Listing:?

Having your home automatically placed in the MLS listing with a realtor is something that we take for granted. Without the agent, you’re shut out of the most powerful home listing server in the country. However, after you pay for your MSL listing, most realtors won’t take their clients to see your house. They don’t want to deal with a homeowner who decided to fly solo.

3. Inspections:

Your home needs to be inspected before it’s officially turned over to the new owner. Agents help with the coordination and cost of this process, but without them, you’re on your own. Sometimes, inspections can produce unlikely results that require you to make home improvements at the very last second.

4. Credit Reports:?

Buyers need credit reports, paperwork, and contracts printed and purchased for them. This may sound like no big deal, but after showing the house to 25-buyers, you’re going to start to think differently. Not to mention the costs associated with staging and selling a home.

By the end, you’re looking at thousands upon thousands of dollars for listing, advertising, inspecting, and selling your house. With a real estate agent, not only are these costs covered, but your time is also spared. It’s realtors’ full-time job to take care of these requirements so you can go on with your life.