Don’t Sell on Your Own Just Because It’s a Sellers’ Market
Appfolio Websites • April 11, 2021
Don’t Sell on Your Own Just Because It’s a Sellers’ Market
In a sellers’ market, some homeowners might be tempted to try to sell their house on their own (known as For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is as low as it is today, buyers are eager to snatch up virtually any house that comes to market. This makes it even more tempting to FSBO. As a result, some sellers think selling their house will be a breeze and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more in the long run.
According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent.
The NAR report explains:
“FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000...Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”
When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):That’s a lot of money to risk losing when you FSBO – far more than what you’d save on commission or other fees. Despite the advantages sellers have in today’s market, it’s still crucial to have the support of an expert to guide you through the process. Real estate professionals are trained negotiators with a ton of housing market insights that average homeowners may never have. An agent’s expertise can alleviate much of the stress of selling your house and help you close the best possible deal when you do.
Bottom Line
If you’re ready to sell your house this year and you’re considering doing so on your own, be sure to think through that decision carefully. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. Let’s connect to discuss how a trusted advisor can help you, especially in today’s market.
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More Options Are Popping Up This Spring Did you try to buy a home last year, but you ended up pressing pause? Maybe you couldn’t find a home that really fit your needs. Or maybe the ones you liked just weren’t affordable. According to a recent survey from NerdWallet, those were the top two reasons buyers gave up on their search in 2025. But this Spring, there's one trend that could help fix both of those frustration points: more homes are hitting the market. The Number of Fresh Listings Is Almost 2x Higher Than a Few Months Ago Data from Realtor.com shows there are nearly 2x as many new listings hitting the market today as there were just 3 months ago. Those are homes the seller just put up for sale ( see graph below): That’s a significant rise. And while we usually see an uptick as we head into the busiest time of the year, this increase was bigger than normal. Jake Krimmel, Senior Economist at Realtor.com, explains : “ New listings jumped 21.2% from February to 439,000, a larger-than-typical seasonal surge . . . March typically sees the biggest month-over-month jump in new listings of the entire buying season, averaging an 18% increase since 2017; this year it exceeded 20%.” That means more sellers are jumping back into the market, and that’s giving buyers more fresh options to choose from. So, if you’d felt like you’d seen everything out there and still nothing was quite right, this may be your moment. With that many “just listed” homes, one of them could be exactly what you’ve been searching for. Where You Have More Options And this trend is happening across most of the country, so you should have more options pretty much whereever you are. Earlier this year, the Northeast had fewer new listings because winter storms delayed sellers from putting their homes on the market. But now, that region is catching up fast. In March, new listings jumped across nearly every state, especially in the Northeast, helping drive a strong national rebound. What Rising Inventory Means for You Right now, there are almost a million homes for sale nationwide. That’s up over 8% compared to last year. With that many homes on the market, there’s a much better chance something will fit what you’re looking for, especially with so many fresh options being added right now. As Odeta Kushi, Deputy Chief Economist at First American, explains : “One of the most encouraging signals heading into the spring home-buying season is the improvement in for-sale inventory levels compared with last year. . . More homes on the market give buyers greater choice and, combined with improved buying power, expand the range of homes they can realistically consider. ” In other words, your search may feel very different this year. Bottom Line More fresh listings are hitting the market right now, and that’s creating real opportunity. If you put your search on hold last year, this Spring may be the time to jump back in. Let’s take a look at what just hit the market and see what could work for you.
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Rent or Buy? The Real Tradeoff Most People Don’t Talk About You’ve probably asked yourself lately: Is it even worth trying to buy a home right now? It’s a question a lot of people are asking. With today’s home prices and mortgage rates, renting can feel like the easier path. In some cases, it might even seem like the only realistic option right now. And if that’s where you are, there’s nothing wrong with that. But if you’re weighing the decision, there’s one part of the conversation that doesn’t get talked about enough. It’s what each choice does for your future. What Renting Really Gets You (And What It Doesn’t) Depending on your situation, renting does have some advantages: Lower upfront costs. Less responsibility. More flexibility to move when you want. But even with those benefits, a Bank of America survey found 70% of aspiring homeowners worry about what long-term renting means for their future. And that concern comes down to one thing: you’re not building anything for your future. As Yahoo Finance explains: “Paying rent doesn't build equity. You get a place to live, but no ownership stake, no price appreciation, and no asset to leverage for future borrowing or investment .” So, while renting may feel easier, the flexibility you get comes at a cost. How Homeownership Builds Your Wealth Over Time On the other hand, owning a home is one of the most consistent ways people build wealth over time. Why? When you’re a homeowner, you gain something called equity . That’s the difference between what your home is worth and what you owe. That equity grows with every monthly payment you make. It also gets a boost as home values go up through the years – and it adds up quicker than you may think. Today, the National Association of Realtors (NAR) says the average homeowner’s net worth is 43X greater than that of a renter: The dollars in the visual don’t lie. On average, here’s how net worth compares: Homeowners: $430k Renters: $10k And it’s not because homeowners make wildly different decisions day to day. It’s because over time, one path builds something, and the other doesn’t. So sure, buying comes with some upfront costs and more responsibility. But it’s basically a savings account you can live in. The Gap Is Growing Over Time And here’s something else interesting. That net worth gap between renters and homeowners has been widening over time, not shrinking. If you look back at the reports on net worth through the years, you can see the gap is growing as homeowners gain wealth and renters stay stuck in the rental trap (see graph below): Even in 2025, when home prices were moderating, homeowners still gained even more ground. And that tells you something important: When you can afford it and you’re ready for the responsibility, history shows buying is usually worth it in the long run. Because either way, you’re paying for someone’s mortgage and building someone’s net worth. When you rent, it’s your landlord’s mortgage – not yours. But when you buy? Your monthly payments help build equity. The question is: whose do you want to pay? Yours or theirs? So, Should You Buy a Home Now? The short answer is, it depends on your situation. While the long-term benefits of buying are clear, that doesn’t mean the timing is right for everyone right now. And that’s okay. You should only buy a home once you’re ready and the numbers work for you. But whether you’re looking to buy now or planning for the future, the first step is the same. You should have a quick conversation with a local real estate agent about your goals, timeline, and budget. They can help you run the numbers and see what’s realistic. You may find buying is closer than you thought. And if not, you’ll at least know exactly what it will take to get there. Because the sooner you have a plan , the sooner you can decide when it makes sense, instead of wondering if it ever will. Bottom Line Renting may feel more do-able today. But over time, it could cost you . If you want to ditch renting and start building something for your future, it starts with a simple conversation. Let’s connect, talk about your specific goals, and explore your options – so you’re ready when the time is right for you.
