Why Selling Your Home Alone Is More Complicated Than Ever
Selling a home on your own (For Sale By Owner or FSBO) has become more complex after the National Association of Realtors (NAR) settlement on August 17, 2024. The settlement brought significant changes to how real estate commissions are handled, which directly impacts FSBO sellers. 1. Increased Costs: Previously, sellers were often responsible for paying both their agent's commission and the buyer's agent's commission. After the settlement, sellers are no longer required to pay the buyer's agent commission. However, this shifts the burden to the buyer, which could complicate negotiations. As a FSBO seller, you may need to lower your asking price to make your property more attractive to buyers who now have to cover their agent's fees. 2. Reduced Buyer Pool: Because buyers now have to pay their agent directly, fewer buyers may be willing to purchase FSBO properties unless the price is significantly reduced. This could lead to longer times on the market and fewer offers, which diminishes your negotiating power. 3. Legal and Financial Pitfalls: Without the expertise of a real estate agent, FSBO sellers are at greater risk of legal issues, pricing errors, and missing out on the best marketing opportunities. The new rules also require more documentation and transparency, which can be challenging to navigate without professional help. 4. Complex Negotiations: FSBO sellers may find it more difficult to negotiate deals, especially under the new settlement rules. Buyers, now bearing more costs, may be more aggressive in their demands, making it tougher for sellers to achieve their desired sale price without an experienced agent.
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