When Jill Langen decided to list her Clarkston, Michigan, home of 25 years for sale last month, she did it without the help of a real estate agent. Seven days later, she had an agreement signed with a buyer and her home was off the market. Langen’s decision to go it alone isn’t typical among America’s home sellers. Just 6% of home sales last year were for-sale-by-owner (FSBO), an all-time low, according to an annual report by the National Association of Realtors, the trade organization that represents over 1.5 million real estate professionals. However, some homebuyers and sellers may be looking for alternatives to the traditional real estate agent model after the standard commissions were challenged in a series of lawsuits in 2024 that led to changes in industry practices. Langen, a 61-year-old higher education administrator, said the industry changes were “very much” on her mind when she decided to bypass a Realtor. Even after new rules for Realtors were enacted last year, most home sellers still pay a commission, averaging about 5% to 6% of their home’s sale price. Langen listed her home for $515,000; a sale at that price with the help of a traditional Realtor might have cost her between $25,750 and $30,900 in commission fees at closing. For some, working with a Realtor may be worth it. Langen and other home sellers who tried the FSBO route said it takes a significant amount of time — and homework — to successfully sell your own home. And the typical FSBO property sold for $380,000 compared to $435,000 for agent-assisted home sales last year, according to data from NAR. Real estate agents have pointed to this data as evidence that selling a home with a professional results in higher profits. “Our thought was: ‘We can try this for a few weeks and if it doesn’t work, we can always work with a Realtor. But let’s give it a shot,’” Langen said. “FSBO is great for some people and probably not a good option for everybody. It was a really good option for us.” Here’s how Langen’s experience went. Listing on your own Langen went into the home-selling process with some background knowledge: She and her husband worked with a Realtor to purchase a new home in the Denver area earlier this year before listing their Michigan home for sale. “For a year, we worked with a wonderful Realtor as buyers in Colorado,” she said. “We lived through that process, so we learned some things.” Still, listing a home on your own can be a heavy lift. Langen prepared for the sale far in advance, taking photos of her home last spring when her yard’s foliage was in full bloom. She then looked at how much comparable homes in her area were selling for and settled on $515,000 as her list price. Then she printed flyers and put a “For Sale” sign on her lawn. With the help of OpenAI’s artificial intelligence chatbot, ChatGPT, she crafted a description of her home and posted the listing on Zillow. Then came many, many calls. Langen said she was fielding 20 calls a day, many from Realtors soliciting their services. “Some were wonderful and some were unpleasant, which surprised me,” she said. In the first few days, Langen hosted an open house and had multiple showings. She and her husband spent hours beforehand cleaning their home and clearing out personal items, like dog toys from the living room and shampoo from the shower. “We wanted it to look welcoming, but not like someone was living there,” Langen said. Ultimately, Langen said she received multiple competing offers on her home and settled on an unrepresented buyer, meaning she was spared the commission fees for the seller’s agent and the buyer’s agent. The good and the bad In a lot of ways, Langen’s story isn’t typical. Another friend who lived in her neighborhood had already sold their home via FSBO, which gave Langen the confidence that it could work. Her home was in a desirable neighborhood, with little inventory for sale, meaning buyer interest was already high. “Time was on our side. We weren’t in a rush. We didn’t have to move before school started or a work deadline or something like that,” she said. “We had some flexibility that made FSBO a good option for us.” Langen also had the time to take dozens of calls a day and put in the work. After finding her buyer, the home inspection followed. After the inspection, Langen negotiated with the buyer of her home and agreed to pay for minor repairs to her home’s attic. “We just knew, because we just went through the process in Colorado, there would likely be something that had to be corrected. We worked through that with the buyer,” she said. For closing, Langen used a title company that offered a package for FSBO homes. The title company generated all the necessary documents and helped Langen figure out how much money needed to go into escrow and how to deal with her homeowner’s association. She plans to schedule the closing for the end of the month. “Closing is a little anti-climactic,” she said. “You just hand over the keys and the garage door opener.” Not all FSBO endeavors are successful, though. Aditya Srinivasan, who recently retired and was planning a move with his wife to Eugene, Oregon, from California’s Bay Area, had a different experience. After listing his home on Zillow last month, Srinivasan, 70, said he was flooded with phone calls and text messages about his home. Many appeared to be from scammers; some were only willing to pay for the home in cryptocurrency. Another would-be buyer strung Srinivasan along, only to drop her offer just before it was time to sign a purchase agreement. Ultimately, Srinivasan decided to pull his FSBO listing off the market. This month, he listed his home with a Realtor he trusts instead. “You’ve got to be careful. Your bandwidth does get used up with these things a little bit,” he said. “When you’ve never done it before, there’s a learning curve.”
They tried to sell their homes without a real estate agent. Here’s how it went
TruthLens AI Suggested Headline:
"Homeowners Weigh Pros and Cons of Selling Without a Real Estate Agent"
TruthLens AI Summary
Jill Langen's recent experience selling her home in Clarkston, Michigan, without a real estate agent illustrates the challenges and successes of the for-sale-by-owner (FSBO) model. After 25 years in her home, Langen decided to list it herself, motivated in part by recent industry changes that have prompted some sellers to explore alternatives to traditional real estate practices. Her home was listed at $515,000, and within a week, she received an agreement from a buyer, avoiding the typical commission fees that can range from 5% to 6% of the sale price. Despite her successful sale, Langen's experience is not representative of the broader FSBO market, which accounted for only 6% of home sales last year. This low percentage reflects the significant time and effort required to sell a home independently, as Langen found herself managing numerous inquiries, hosting open houses, and negotiating repairs post-inspection. While Langen benefited from favorable market conditions, including a desirable neighborhood and ample buyer interest, the FSBO path may not be suitable for everyone, particularly those lacking the time or experience to navigate the complexities of home selling.
In contrast, Aditya Srinivasan's attempt to sell his home in California's Bay Area through the FSBO route yielded a less favorable outcome. After listing his property on Zillow, he faced an overwhelming number of inquiries, many of which were scams or unrealistic offers. His experience highlights the pitfalls of selling without professional guidance, leading him to ultimately withdraw his listing and engage a trusted Realtor instead. While some sellers like Langen can find success in FSBO, others may struggle with the demands and uncertainties of the process. The contrasting experiences of Langen and Srinivasan underscore the varying degrees of success in the FSBO market, suggesting that while it can work well for some, it may not be the best option for every seller. As the real estate landscape continues to evolve, the FSBO model remains a viable alternative for those willing to put in the effort, but it also carries inherent risks that must be carefully considered.
TruthLens AI Analysis
The article presents a case study of Jill Langen, who successfully sold her home without the assistance of a real estate agent, reflecting a growing trend among some homeowners to explore alternatives to traditional real estate practices. This narrative highlights both the potential benefits and challenges associated with selling a home independently, while also engaging with broader industry shifts following recent lawsuits.
Motivation Behind the Article
The piece aims to inform readers about the FSBO (For Sale By Owner) process, especially in light of the declining percentage of home sales conducted without agents. By showcasing a personal success story, the article encourages readers to consider this option, particularly in a market where real estate commissions are under scrutiny. The decision to bypass a Realtor is framed as a proactive choice influenced by changing industry practices, suggesting that homeowners can take control of their sales process.
Perception Creation
The article appears to promote a narrative that selling a home without a real estate agent can be both viable and advantageous, particularly in certain circumstances. It emphasizes the autonomy and potential financial savings homeowners may experience. However, it also acknowledges the challenges and the fact that this approach may not be suitable for everyone, thus creating a nuanced view rather than a purely optimistic one.
Information Omission
While the article provides a positive account of Langen's experience, it may underrepresent the complexities and potential pitfalls of the FSBO route. For example, it does not delve deeply into the challenges that other sellers may face, such as pricing strategy, marketing, and legal issues, which could create a skewed perception of the FSBO process.
Trustworthiness of the Article
The overall reliability of the article is moderate. It draws on statistics from the National Association of Realtors regarding the effectiveness of agent-assisted sales versus FSBO, providing a factual basis for its claims. However, the singular focus on one successful individual may lead to an overly optimistic portrayal of FSBO outcomes.
Public Sentiment and Economic Impact
This article could resonate with certain segments of the population, particularly those frustrated with high real estate commissions or those who feel capable of managing the sale of their home independently. It may encourage more homeowners to consider the FSBO option, potentially impacting the real estate market by increasing the prevalence of independent sales. However, this could also lead to a decline in the business of traditional real estate agents.
Connection to Broader Trends
The discussion aligns with ongoing conversations about real estate commission structures and the drive towards more consumer-friendly practices in the housing market. Given the context of recent legal challenges to real estate commissions, this article taps into a larger movement advocating for transparency and lower costs in real estate transactions.
Community Engagement
The article is likely to appeal to financially savvy individuals, particularly those within middle to upper-middle-class communities, who feel empowered to take on the responsibilities associated with selling their homes. It promotes the idea that FSBO can be a practical choice for those willing to invest the necessary time and effort.
Market Influence
The implications of this article could extend to stock performance in real estate companies, particularly those that rely on traditional commission models. If more homeowners pursue FSBO sales, it could negatively affect the revenues of these companies, leading to fluctuations in stock prices.
Geopolitical Relevance
While the article primarily focuses on individual home sales, it reflects larger economic trends that resonate within the current housing market dynamics. It may not have direct geopolitical implications, but it does touch on the evolving relationship between consumers and real estate professionals, which is relevant to economic discussions.
Artificial Intelligence Considerations
There's no direct indication that artificial intelligence influenced the writing of this article. However, if AI tools were utilized in data analysis or trend forecasting, they could have guided the narrative towards emphasizing the FSBO trend. The language used is accessible, which may suggest an aim to appeal to a broad audience rather than a specialized one.
In conclusion, while the article presents an informative and engaging perspective on FSBO home sales, the complexity of the real estate market and individual circumstances should be considered for a comprehensive understanding of this option.