B
ased on data from Clever, home sellers who went without a real estate agent earned $79,000 less in profits last year compared to those who used an agent. What's more, 80% of unrepresented sellers were unaware of the average commission rate they could have saved on. Many FSBO sellers thought saving money was worth the hassle, but 54% wished they had chosen an agent.

    Here are some challenges you might face when selling your home without a real estate agent:

    You Earn Less in Profit

    FSBO sellers may save money on agent fees, but their profits suffer as a result. According to Clever's study, FSBO sellers earned $128,500, while represented sellers made $207,500. One key factor is the listing price, which can be tricky to determine without market knowledge.

    Real estate agents have expertise in pricing homes correctly, and 49% of FSBO sellers regretted their pricing decisions. In contrast, 73% of represented sellers were satisfied with their agent's pricing. By hiring an agent, you increase your chances of earning a higher profit margin.

    Your Home May Not Sell as Quickly

    Some unrepresented sellers thought they could sell their home faster without an agent. However, the process can take longer without professional expertise and marketing. The Clever study found that 48% of FSBO sellers believed their home would have sold faster with an agent.

    Hefty Unexpected Expenses

    FSBO sellers are more likely to encounter unexpected expenses, such as moving costs, repairs, transfer taxes, closing costs, and legal fees. Agents can help you prepare for these expenses by factoring them into the commission.

    Marketing Can Be Difficult

    Without access to the MLS, FSBO sellers limit their exposure to potential buyers. Real estate agents have marketing expertise in staging homes for photographs and videos, promoting through social media, and utilizing advertising methods.

    You Could Struggle With Negotiations

    Inspections, repairs, financing, and appraisal are common negotiation points in real estate transactions. Agents know the contract inside and out and can guide you through the process to a smooth close. Without an agent's expertise, negotiating the best deal can be tricky, especially with multiple offers or complicated contingencies.

    Finally, the closing process is complex and involves multiple parties and documents. Small errors or oversights could lead to significant delays or jeopardize the entire deal.