Hello! I’m Trish Sawyer, your Central Vermont real estate specialist with New England Landmark Realty. Today, let’s talk about a question that’s on the minds of many Vermont homeowners considering selling their property: Does selling For Sale By Owner (FSBO) actually save money? Spoiler alert—the answer isn’t as straightforward as it seems.
FSBO in Vermont: A Closer Look
On the surface, selling your home without an agent might seem like a great way to save on commissions. Vermont’s real estate market, with its unique characteristics, might tempt sellers to take the DIY route. But let me share a story that sheds some light on the true cost of going FSBO.
A Tale of FSBO Gone Wrong
I recently worked with first-time homebuyers who fell in love with a charming Vermont property listed as owner entry, which means the seller paid a small fee to have the home featured on the MLS. The rest of the work was the responsibility of the owner. Horrible photos, and a poorly featured listing drew the attention of no one.....except me. Knowing the home was located in a great neighborhood, I suggested to my buyers that we take a look at this overlooked home. Most buyers would have turned their nose up, but this couple was determined to find their first family home and they weren't afraid to put in a little work if it meant getting a good deal in a highly competitive market. The seller—thinking they were saving money by not using an agent—had no idea how to navigate the sale and how could he? With so many changes in this ever-evolving market, even some Realtors find it challenging to keep up! He naively thought he could rely on his attorney to play a dual role as agent and lawyer. Wrong! From incomplete paperwork to missed deadlines, the process was chaotic. It took three times the effort on my end to keep everything on track, but here’s the kicker: because the FSBO seller was not a skilled real estate professional, and chose not to be represented by one, my clients ended up with a wonderful home in a fantastic neighborhood for significantly less than it was worth. The seller, who thought they were saving on commissions, ultimately lost about $50,000 in potential profit. Ouch.
What’s the Real Cost of FSBO?
According to the National Association of REALTORS® (NAR), FSBO transactions comprised just 7% of home sales nationwide in 2023, marking the lowest percentage on record. This indicates a significant preference among homeowners for utilizing real estate agents when selling their properties. Additionally, NAR reports that FSBO homes sold for a median price of $380,000, whereas agent-assisted homes sold for a median of $435,000.
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Pricing Challenges Without a real estate agent’s expertise, it’s easy to misprice a property. Overpricing leads to a stale listing. The goal is to find the sweet spot to engage as many buyers as possible. More prospective buyers = more offers = a strong, successful sale for the seller. A real estate agent conducts a Comparative Market Analysis (CMA) to ensure your home is priced competitively. Everyone has an opinion, a responsible Realtor will provide you with the research to back it up.
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Limited Exposure Agents have access to the Multiple Listing Service (MLS), professional networks, and marketing tools to get your home in front of as many potential buyers as possible. FSBO sellers rely on platforms like Zillow or Craigslist, which might not reach the right audience.
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Time and Effort Selling a home involves more than putting up a sign. From helping to prepare your home for sale and featuring it in its very best light to negotiating offers and navigating clauses, contingencies and inspections, the process requires time, knowledge, and attention to detail. FSBO sellers often underestimate the workload.
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Legal Risks Real estate transactions involve complex contracts and legal requirements. Missing a disclosure or misunderstanding a contingency could lead to costly mistakes—or even lawsuits.
Why Working with an Agent Saves Money (and Stress)
A skilled real estate agent provides value in ways that go far beyond their commission:
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Accurate Pricing: Agents use data and local expertise to ensure your home is priced right.
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Marketing Expertise: Professional photography, targeted advertising, and open houses help your home stand out.
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Negotiation Skills: From offer to closing, an agent advocates for your best interests.
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Streamlined Process: An agent handles the details, ensuring nothing falls through the cracks.
The Vermont Market: Why Local Expertise Matters
Vermont’s real estate market has its quirks. Older homes, septic systems, and the ever changing rules and regulations associated with real estate sales, make it essential to work with someone who understands the local landscape. An agent’s knowledge can mean the difference between a smooth transaction and a stressful ordeal.
For a comprehensive guide on selling your Vermont home, visit: Selling Your Vermont Home: The Ultimate Seller’s Guide.
Ready to Sell? Let’s Talk.
Whether you’re considering FSBO or just want to explore your options, Trish Sawyer is here to help. Selling a home is a big decision, and having an experienced professional on your side can make all the difference. Let’s chat about your goals and how I can help you achieve them—with minimal stress and maximum profit.
802-233-0554
trishsawyer@nelandmark.com
Let’s make your real estate journey a success—with a little Vermont charm along the way!
