The longer you spend in real estate, the more you start to question what truly makes financial sense.
One of the biggest decisions sellers face is whether to list on the MLS with a broker or try to sell For Sale By Owner.
When I first started investing, I thought FSBO was smart. Why pay a commission when I had a sales background? I believed I could handle negotiations myself and keep more money in my pocket. I learned the hard way that this thinking was flawed.
1. It Severely Limits Exposure
If your property is not listed on the MLS, it receives zero exposure from the vast majority of brokers and agents in your market. A yard sign only captures local drive by traffic. That dramatically reduces your buyer pool.
2. It Impacts Perception
Perception drives value. Buyers compare your property to professionally marketed listings that appear across every major real estate platform. Presentation matters.
3. It Usually Costs You More
Most buyers work with agents, so you often still pay a commission. FSBO homes also tend to sit longer, increasing interest, taxes, utilities, and maintenance costs.
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Mike Hanna is a real estate investor, mentor, author, and public speaker. He has been an active real estate investor since 2002 in both single family and multi-family properties, and has been in the hard money business since 2005.