{"id":182748,"date":"2025-05-12T11:58:00","date_gmt":"2025-05-12T17:58:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=182748"},"modified":"2025-05-13T14:32:43","modified_gmt":"2025-05-13T20:32:43","slug":"why-investors-should-consider-diy-home-sales","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/why-investors-should-consider-diy-home-sales","title":{"rendered":"Why Investors Should Consider &#8220;DIY Home Sales&#8221;"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Real estate agent commissions have been the subject of <\/span><span data-preserver-spaces=\"true\">a lot of<\/span><span data-preserver-spaces=\"true\"> conversations recently.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The August 2024 NAR lawsuit ruling sparked this conversation.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Full disclosure: I&#8217;m a licensed real estate agent in Colorado who actively helps buyers and sellers with their transactions.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Prior to<\/span><span data-preserver-spaces=\"true\"> the ruling that came down in August, lots of<\/span><span data-preserver-spaces=\"true\"> sellers grumbled about paying agent commissions, but for the most part, they DID pay them.<\/span><span data-preserver-spaces=\"true\"> It was considered &#8220;the cost of selling a house.&#8221;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The ruling was supposed to change how <\/span><span data-preserver-spaces=\"true\">houses were sold<\/span><span data-preserver-spaces=\"true\">, but in<\/span><span data-preserver-spaces=\"true\"> reality, sellers have been covering the cost of the buyer&#8217;s agent for so long that many buyers <\/span><span data-preserver-spaces=\"true\">simply<\/span><span data-preserver-spaces=\"true\"> do not have the money to pay their agents themselves, especially in the lower or entry-level price range.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">What I&#8217;m seeing is<\/span><span data-preserver-spaces=\"true\"> that sellers ARE still offering buyer agent compensation simply because <\/span><span data-preserver-spaces=\"true\">their houses won&#8217;t be shown<\/span><span data-preserver-spaces=\"true\"> if they do not.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And<\/span><span data-preserver-spaces=\"true\"> buyers are still using real estate agents because the process can be daunting, and they need someone to walk them through it.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Enter the Investor<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">You&#8217;re savvy, <\/span><span data-preserver-spaces=\"true\">you&#8217;re<\/span><span data-preserver-spaces=\"true\"> familiar with the process, you&#8217;ve done this before. You might be able to get a deal based on these new realities:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">You have an agent that you can afford to compensate.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">You don&#8217;t need an agent because you&#8217;re so experienced.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">You won\u2019t make it complicated.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">You are an agent.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sellers may not be conscious of what they&#8217;re <\/span><span data-preserver-spaces=\"true\">actually<\/span><span data-preserver-spaces=\"true\"> paying their agent. <\/span><span data-preserver-spaces=\"true\">Make sure you&#8217;re stating in the cover letter <\/span><span data-preserver-spaces=\"true\">when you submit your offer<\/span><span data-preserver-spaces=\"true\"> that you&#8217;re covering buyer agent commission.<\/span><span data-preserver-spaces=\"true\"> They may get a higher offer that doesn&#8217;t offer buyer&#8217;s agent compensation, which reduces what goes into their pocket.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Make your offer stronger by covering costs that are typically seller-paid items.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Research shows that For Sale By Owner (FSBO) listed properties sell for significantly less than those listed with a real estate agent. However, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/sites\/johnwake\/2018\/07\/17\/the-truth-about-home-sale-prices-when-you-sell-your-home-yourself-without-a-real-estate-agent\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">this study<\/span><\/a><span data-preserver-spaces=\"true\"> showed a 0% price difference when comparing the local MLS vs FSBOMadison.com.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I think this<\/span><span data-preserver-spaces=\"true\"> particular study is too small to be accurate.<\/span><span data-preserver-spaces=\"true\"> I used to live in Madison and <\/span><span data-preserver-spaces=\"true\">used<\/span><span data-preserver-spaces=\"true\"> FSBOMadison to sell my house. At the time, it was the largest listing site in Madison &#8211; with more homes listed on it than on the MLS. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> isn\u2019t the case with most FSBO\u2019s.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I think <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/magazine\/real-estate-news\/fsbos-reach-all-time-low-more-sellers-rely-on-agents\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">NAR\u2019s version<\/span><\/a><span data-preserver-spaces=\"true\"> of the FSBO data <\/span><span data-preserver-spaces=\"true\">is also skewed<\/span><span data-preserver-spaces=\"true\">. You can make data say anything you want <\/span><span data-preserver-spaces=\"true\">it to say<\/span><span data-preserver-spaces=\"true\">, and NAR has a vested interest in promoting real estate agents.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The truth lies somewhere in the middle. Houses sell for less when not listed with an agent, but buyers are also factoring in no commissions when making their offers.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you\u2019re an experienced investor, you could be able to find a deal by representing yourself or offering to pay your agent\u2019s commission when purchasing a home listed by its owner. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The owner feels like they\u2019ve gotten a great deal by saving on commission, and you\u2019re paying less out of pocket, even with your agent commission factored in.<\/span><\/p>\n\n\n\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">The Money Podcast<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Kickstart your personal finance journey with Scott and Mindy as they break down the good, bad, and ugly of people\u2019s personal money stories. From interviews with entrepreneurs and business owners to breakdowns of listener finances, you\u2019ll get actionable advice on how to get out of debt and grow your money.<\/p>\n\n\n\n<div id=button-custom-event-block_65400b52d0a76 class='button-custom-event'>\n      <a href=\"https:\/\/link.chtbl.com\/Money\" x-on:click=\"window.analytics.track(&#039;Money Podcast Blog CTA Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/why-investors-should-consider-diy-home-sales&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-slate-dark-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Listen Now<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/12\/BP_Money_podcast_square-1024x1024-1-e1660861377128.jpeg\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Real estate agent commissions have been the subject of a lot of conversations recently. The August 2024 NAR lawsuit ruling sparked this conversation. Full disclosure: I&#8217;m a licensed real estate [&hellip;]<\/p>\n","protected":false},"author":1687,"featured_media":182751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7390],"tags":[],"class_list":["post-182748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-acquiring-property"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/182748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1687"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=182748"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/182748\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/182751"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=182748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=182748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=182748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}