FSBO or Hire an Agent?

Question

Hi BP,I have a 6 bedroom student rental near the Ohio State campus that I am ready to sell. My predicament is the tradeoffs between selling by owner or hiring an agent. The main reason for selling myself would of course be to save on commission, but I am also two hours away in Cleveland. The home is currently fully occupied and doesn't need any staging/ improvements. This was my first property and I've never sold a home before, so I wanted to get a feel for how feasible this may be if I'm willing to do the legwork. Any and all comments are greatly appreciated! Thank you

Patrick Drury · Answer

@Austin FreemanFSBO is a bad idea and especially when you don't even live in the city. Trying to save 3% isn't worth it. You are definitely opening yourself up to selling your property for less than it's worth or wasting time trying to sell it for more than it's worth because you don't have a pulse on the market. You don't know what things are trading for here in Columbus on the day-to-day. The agents that are selling these deals do.

Remington Lyman · Answer

I think you would lose more than 3% by not being local. It would also be a lot of work for you.

Nick Thomas · Answer

@Austin Freeman from reading your post I think using a knowledgeable realtor will be well worth the commission for the time and stress they’ll save you. If you had sold homes before or lived locally it would be different.At the very least it’s worth interviewing an agent or two and seeing what they have to offer.Best of luck!

Matt K. · Answer

I'd find an agent that's used to working with investors, unless you going to deliver it vacant.My opinion is you're too far away to really do this yourself and it's going to be much more of a headache to deal with it from that distance then hire an agent.Now if you can't find an agent that would add value to the transaction, then you could totally list FSBO first and at least give it a shot. Then you'd likely have agents calling you trying to get the listing lol

Joe Miller · Answer

Austin, that is a great question. Obviously, I will say use an agent. For very apparent reasons lol. But I truly truly believe that it is worth it. Using an agent is not improving the staging or quality of your home we are simply a marketing tool. With being able to use the MLS we put it in-front of as many potential buyer that are out there and get your the most views and offers. We are also the on the frontlines helping you avoid headaches and other people wasting your time. I am not saying to use me, I am saying to use an agent. Statistically, agents bring an additional 10-15% extra for your property. So it is well worth the 6% you will "lose" to our commission.

Scott Allen · Answer

@Austin Freeman I think you'll save yourself a lot of time and energy if you take 1-3 hours to find a solid agent that you feel comfortable working with here in Columbus. I've noticed with many FSBO's that I've helped sell properties for in the past that they are usually a little burned out by potential buyers wanting to do multiple showings and or falling out of contract due to either financing or cold feet. A solid agent can bring you an offer and show comps without even having to the list the property but, listing the property will give you the maximum amount of exposure to potential buyers out there who might pay more. When selling, think about how much you're making. Let the buyer think about how much they're saving.

Luka Milicevic · Answer

@Austin FreemanThe data shows that the savings on commission doesn't pencil out.I learned this with an apartment complex a few years ago that I tried to FSBO. I couldn't sell it....Gave it to a GOOD commercial agent and he got it under contract in a day for $200k more than I was trying to sell it.You have to interview several agents before deciding on who you want to use. Getting a real estate license is as difficult as buying a loaf of bread. The barrier to entry is so low, so there are soooo many agents have no clue what they are doing. Take your time to get the RIGHT agent.

Nicholas Salman · Answer

Hey Austin! I have noticed in my time in the industry that using an agent can be a great benefit. They are usually able to have the property sell a great deal over asking and honestly puts the stress more on them than yourself. Up to you but I lean towards hiring a realtor!

John Clark · Answer

Much as I loath real estate agents, if you are 2-3 hours away, you cannot realistically FSBO. Hire a good agent and be crystal clear in what you want AND how you want it done.

Jarrod Kohl · Answer

A side benefit of using an agent in that market. Unless you don't plan on investing there anymore, its great to establish a little bit of a team and they can help you find new opportunities that come up.