Selling your home without an agent is becoming more commonplace. In Singapore, HDB owners who sold their flats without an agent increased from 11% in 2010 to almost 25% in the subsequent five years. In the real estate world, selling a property without engaging a realtor is called FSBO: For Sale By Owner. While real estate agents would discourage FSBO, some people swear by it.
Whether you are selling your home because you want to move closer to a new workplace, or are attracted by the new Treasure at Tampines launch, you will have to make a decision on whether to hire an agent or do it FSBO.
Here are some potential reasons why you might want to go FSBO:
Save costs on commission
The most obvious reason for not wanting to hire an agent is to save on costs that go to the realtor. Real estate agents earn by commission, so home sellers have to pay extra to engage their services.
Home sellers who choose the FSBO route believe it maximises their earnings. This is good news for those trying to upgrade their home, as the money from the sales can offset the price of their new home. This way, you don’t need to worry about not being able to afford properties at Treasure at Tampines prices. Without a cut of the home price going to the realtor, property owners can also sell the price at a lower price, making it more attractive for buyers.
Be more committed to the sale
As real estate agents help property owners buy and sell homes, they are likely to be working with multiple clients at one time. They will not be able to give you and your property the fullest attention, and often there are also conflicting interests at play. For example, real estate agents may try to close sales as quickly as possible so that they can take up more clients and earn more. However, as a home seller, you will likely want to sell your home at the best price possible, even if it means waiting for a bit longer.
Have your own say in the sale
If you have the time and energy to spare, FSBO may be for you, as you will have your say in how to sell the property. You won’t need to get anyone’s approval on the price you set on your home, and how you want to market your home. Of course, this can be very time-consuming and requires some know-how. But the initial investment may prove to be worth it, and you will be able to sell your home according to your own wishes.
It is easier to do so now
An increasing number of sellers doing FSBO is a testament to how it has gotten much easier than before. A number of online sites are dedicated to FSBO property listings, and many offer support for independent home sellers.
These support services range from advertising to paperwork and negotiations, and comes at a fraction of the price of engaging a real estate agent. Online guides that outline the whole FSBO process also aid first-timers in handling the sales process by themselves.
In Singapore, FSBO is particularly suitable for sales of HDB flats as the process is quite standard and transparent. Selling private properties without an agent, however, might pose a slightly bigger challenge.
Whether you are looking up balance units at new developments, or are seeking an upgrade to Treasure at Tampines, selling your home is the first priority before you can buy your new home. Now that you know about the advantages of FSBO, will you be giving it a try?