When the time comes to move, some tenacious homeowners are eager to take over the reins of their home sale and figure out how to sell a house by owner in Tennessee. With millions of homes sold each year, a modest portion of sellers — about 7% in 2021 and 10% in 2022 — choose to list “For Sale By Owner” (or FSBO — pronounced fizz-bow). Of those, 50% already knew the buyer of the home, according to data from the National Association of Realtors (NAR). In this guide to selling FSBO in Tennessee, we’ll cover what can be the most difficult aspects of selling by owner in the Volunteer State, including the steps that might be harder than you think. We’ll also provide a comprehensive overview of the full process to prep, market, and close on your home without the assistance of a real estate agent. FSBO is a method of selling your home without the involvement of a listing agent. In a FSBO scenario, sellers assume the responsibilities that would normally fall to their agent, such as pricing the home, marketing it to potential buyers, arranging showings, and negotiating the deal. In an agent-assisted sale, the seller typically pays a commission amounting to around 6% of the sale price, which is then most often split 50/50 with the buyer’s agent. That 6% is deducted from the seller’s proceeds at closing. By selling FSBO, a seller can eliminate the cost of the listing agent’s commission (so around 3%), though they may still need to offer a buyer’s agent commission. Buyers’ agents will expect compensation for the work they do to bring a buyer to a sale, such as arranging showings and helping to tee up and qualify the buyer. Plus, when a seller isn’t working with an agent, the buyer’s agent may end up carrying more of the weight to get the deal to the finish line. Finally, a FSBO sale does not mean that a seller won’t need any professional assistance. In Tennessee, sellers aren’t required to hire a real estate attorney, but FSBO sales typically warrant legal and professional oversight of some kind to avoid an abundance of legal risk. Most people who sell by owner will need to hire an attorney to review and prepare key documents and make sure paperwork is filled out properly, such as the seller’s disclosures. We’ll address what disclosures are required when selling a house in Tennessee later in this post. The top three reasons people cite for selling FSBO include: “did not want to pay a commission or fee” (44%); sold to a relative, friend, or neighbor (29%); or that the buyers contacted the seller directly (16%), according to NAR data. To get a firsthand perspective on selling homes in Tennessee, we spoke with top real estate agent Rebecca Carter in Knoxville, who sells homes 47% faster than the average agent in her market. Carter says Tennessee FSBO sellers she encounters “think because the market has been so hot they can sell the house by themselves and they don’t need an agent.” Ultimately, they are looking to save on the commission they’d have to pay a listing agent. However, 2022 data from NAR shows that “FSBO homes sold at a median of $225,000, significantly lower than the median of agent-assisted homes at $345,000.” This NAR data contrasts the median prices among all FSBO homes (for which we have limited data) against all agent-assisted homes, regardless of distinctions like square footage. However, an earlier independent study that does adjust for square footage also showed a significant price difference: FSBO homes sold for an average of 5.5% less than agent-marketed sales. As you can see, FSBO is a mixed bag. So, before we share our selling tips, let’s lay out some pros and cons to help you decide if this is the route for you.How does selling by owner (FSBO) work in Tennessee?
Why sell a house by owner in Tennessee?
