The True Value of Hiring a Real Estate Agent vs. Going FSBO in Lebanon
Selling a home is one of the most significant financial transactions most people will ever make. With home values reaching all-time highs in many markets, it’s tempting for sellers to bypass an agent and list their property as a For Sale By Owner (FSBO). After all, avoiding commission fees can seem like an easy way to save money. However, before making that decision, it’s essential to weigh the benefits and drawbacks of both options carefully.
In this article, we’ll explore why hiring a real estate agent in Lebanon can be a game-changer in maximizing profits, selling quickly, and avoiding legal pitfalls. We’ll compare FSBO sales and agent-assisted transactions with real data to give you a clear picture of what to expect.
1. Proper Pricing: The Key to a Fast and Profitable Sale
Pricing a home correctly is one of the most critical factors in ensuring a fast and profitable sale. Real estate agents have access to up-to-date market data, local sales trends, and insights into how homes are being priced and sold in your exact neighborhood.
Many FSBO sellers rely on public platforms like Zillow or Redfin to determine their home’s price. While these sites provide estimates, they can be inaccurate. A study by Collateral Analytics found that homes sold through FSBO often end up being priced about 5.5% lower than those sold through an agent. Additionally, homes that sit on the market too long due to mispricing often require price cuts, further reducing potential profits. Being 5.5% off on your sales on a $500,000 sale can cost you over $27,000 in lost profit.
An experienced real estate agent can evaluate comparable sales, market conditions, and buyer demand to price your home optimally, ensuring it attracts buyers quickly without leaving money on the table.
2. The Commission Factor: Is FSBO Really Saving You Money?
One of the primary reasons homeowners consider FSBO is to save on the 5-6% commission typically paid in a traditional sale. However, FSBO sales frequently result in lower sale prices, offsetting any potential savings.
According to the National Association of Realtors (NAR), in 2023, the median FSBO home sold for $310,000, while agent-assisted homes had a median sale price of $405,000. That’s a difference of $95,000—far exceeding any commission savings. Even after paying a 6% commission (roughly $24,300 on a $405,000 home), the seller still walks away with significantly more money than if they had sold independently.
Additionally, most FSBO sellers still end up paying a buyer’s agent commission (typically 2-3%), further reducing their savings.
3. Leveraging an Agent’s Extensive Network
Most homeowners don’t have the network or marketing reach that a real estate agent provides. A professional agent has access to:
- A pool of active buyers looking for homes in your area.
- Other agents with clients ready to purchase.
- Exclusive pocket listings that aren’t even available to the general public.
- MLS (Multiple Listing Service), which exposes your property to thousands of buyers and agents.
FSBO sellers lack these connections, which often results in longer time on the market and increased carrying costs like mortgage payments, taxes, and maintenance.
4. The Power of Professional Marketing
Marketing is crucial to attracting the right buyers and getting top dollar for your home. Real estate agents have access to professional photography, videography, home staging services, and online advertising strategies that maximize exposure. Consider these key marketing advantages of hiring an agent:
- Professional Listing Photos: Homes with high-quality images sell 32% faster than those with amateur photos, according to Redfin.
- Virtual Tours and Staging: Staged homes sell for up to 20% more than non-staged homes, according to a 2021 report from the Real Estate Staging Association.
- Social Media and Digital Advertising: Agents use Facebook, Instagram, and Google ads to drive targeted traffic to your listing.
As an FSBO seller, you may struggle to market your home effectively, leading to fewer inquiries and ultimately a lower sale price. Did you know that most people that find success as a for sale by owner already know the person they’re gonna sell to before ever going on the market. So if you don’t already have that person in mind or knocking on your door, looking to buy your home, your chance of being successful and getting the most value for your home without the power professional marketing can be much smaller.
5. Navigating Negotiations and Legal Complexities
Selling a home involves more than just finding a buyer—it requires navigating inspections, appraisals, contract negotiations, and legal disclosures. A real estate agent acts as your advocate, ensuring you don’t fall into costly mistakes. Here’s how an agent helps:
- Negotiations: Agents handle negotiations with buyers, appraisers, and inspectors to ensure you get the best deal.
- Legal Protections: Real estate contracts include multiple contingencies and disclosures. A mistake in documentation could result in lawsuits or financial losses.
- Inspection & Appraisal Guidance: Many deals fall apart due to inspection issues or low appraisals. Agents know how to handle these challenges to keep the deal on track.
6. The Risks of FSBO: A Cautionary Tale
While FSBO might seem attractive, many sellers find themselves overwhelmed by the process. Here are some common pitfalls FSBO sellers encounter:
- Limited Buyer Exposure: Many FSBO homes sit unsold for months due to lack of visibility.
- Legal Risks: Missteps in contracts or disclosures can lead to lawsuits.
- Time & Stress: Selling a home is time-consuming, requiring constant availability for showings, negotiations, and paperwork.
The Verdict: Hiring an Agent Pays Off
While FSBO may seem like an opportunity to save money, the reality is that hiring a real estate agent maximizes your final sale price, reduces stress, and protects you from legal risks. Studies consistently show that agent-assisted sales result in higher profits—even after commission fees are paid.
If you’re thinking about selling your home in Lebanon, reach out to us for a no-pressure consultation. We’ll provide you with a clear market analysis and show you how we can help you achieve the best possible outcome.
Are you ready to sell a property in Lebanon? We can help! Send us a message or give us a call today! (603) 443-3149