FSBO or Flat Fee Broker?

This could be a tough decision to make. 

For Sale By Owner sellers are a brave bunch of people. They 

looked the giant real estate industry in the face and took a chance of selling their own home without help.

The money saved by selling your own home is significant indeed. A $300,000 home sale is not that unique any more. You will save $18,000 in sales commissions on a $300,000 sale. Do the math. How long does it take you to make $18,000? 

Before you start thinking about how you can take that dream vacation with the savings you should know that only 14% of FSBO attempts are successful. 

The true number of how many people managed a successful FSBO sale conflict. The NAR (National Association of Realtors) use the 14% figure.

If you decide to try the FSBO route make sure you establish a backup plan if you do not sell your home. When real estate sales go through tough times (as they are in 2007) FSBO sales are likely to dry up as well. Often the FSBO person is so frustrated and depress that he will go straight to a full commission real estate agent before considering a flat fee agent. This may not be the best decision.

The national average the commissions of full service agents is 5.1% as this is written. 

On the other hand the FSBO person may end up spending a lot of money with the big FSBO organizations that have their own ways to fleece people. Some charge very large flat fees.

The big FSBO companies are well aware of the 86% of FSBO's who fail. They offer their own backup plan with ala carte pricing for many services. Using their services can cost a bundle. One agent reported to me that his services could amount to $4,000.

By all means try the FSBO route if you don't mind dealing with buyers and showing your home yourself. It can be quite an exciting adventure.

But be ready to put a flat fee agent on your team if you are not successful with your FSBO effort.

It's the smart way to sell your home.

Greg Cryns is the owner of Flat Fee Real Estate Guide - http://www.flatfeerealestateguide.com