If you’re selling your home in New Jersey, you might be wondering:
💰 Should I sell my home FSBO (For Sale By Owner) to save on realtor commissions?
💰 Or is selling to a cash buyer the better, faster option?
At first glance, FSBO seems like the cheaper choice—after all, you skip the realtor fees. But many FSBO sellers end up losing money due to hidden costs, longer time on market, and difficult negotiations.
On the other hand, cash buyers offer a faster, hassle-free way to sell, but at a slight discount.
So which one actually puts more money in your pocket? Let’s break it down.
1. FSBO (For Sale By Owner) – The Pros & Cons
✅ Pros of Selling FSBO in New Jersey:
✔ No Realtor Commission – You save 5-6% of the sale price.
✔ Full Control – You handle pricing, marketing, and negotiations.
✔ No Pressure – You sell on your own timeline.
🚨 Cons of Selling FSBO in NJ:
❌ Marketing Costs Are On You – You need to pay for listing fees, professional photos, and ads.
❌ FSBO Homes Take Longer to Sell – On average, FSBO homes sit longer on the market, leading to extra mortgage, tax, and utility payments.
❌ Buyers Expect a Discount – Most FSBO homes sell for less than agent-listed properties.
❌ Paperwork & Legal Issues – Without an agent, you’re handling all contracts, disclosures, and negotiations yourself.
💡 The Reality: Most FSBO sellers only save money if they already have an experienced buyer lined up—otherwise, they lose thousands in time, price cuts, and carrying costs.
2. Selling to a Cash Buyer – The Pros & Cons
✅ Pros of Selling to a Cash Buyer in NJ:
✔ No Realtor Fees – Save 5-6% on commissions.
✔ No Repairs Needed – Cash buyers purchase homes as-is, saving you $10K-$50K+ in repairs.
✔ No Closing Costs – Many cash buyers cover all closing fees.
✔ Fast Sale – No Mortgage Delays – Cash sales close in 7-14 days, avoiding buyer financing issues.
🚨 Cons of Selling to a Cash Buyer in NJ:
❌ Offers May Be Slightly Below Market Value – Cash buyers need to make a profit, so offers are typically 10-15% below full retail market value.
❌ Fewer Buyers to Choose From – You won’t have an open market bidding war.
💡 The Reality: Selling to a cash buyer is ideal if you want to sell fast, avoid repairs, and eliminate all extra costs. While the offer may be slightly lower, the amount you save in commissions, repairs, and holding costs often makes up the difference.
3. Cost Breakdown: FSBO vs. Cash Sale in NJ
Here’s a real comparison based on a $400,000 home sale in NJ:
| Expense | FSBO Sale | Cash Buyer Sale |
|---|---|---|
| Realtor Commission (5-6%) | $0 | $0 |
| Repairs Before Selling | $10,000-$30,000 | $0 |
| Marketing & Listing Costs | $1,000-$3,000 | $0 |
| Closing Costs (2-4%) | $8,000-$16,000 | $0 (Buyer Pays) |
| Mortgage & Holding Costs (Extra 3 Months on Market) | $5,000-$10,000 | $0 |
| Total Costs | $24,000-$59,000 | $0 |
Even if a cash buyer offers 10-15% below market, many FSBO sellers end up losing more in extra expenses.
4. Which One Saves You More Money?
FSBO Works Best If:
✅ You already have a buyer lined up (like a family member or friend).
✅ You have the time & expertise to handle marketing, negotiations, and paperwork.
✅ Your home is already in perfect condition (no major repairs needed).
Selling to a Cash Buyer Works Best If:
✅ You want to sell fast (in weeks, not months).
✅ You don’t want to make repairs or deal with showings.
✅ You don’t want to risk buyers backing out or failing to get financing.
Final Verdict: FSBO vs. Cash Buyer in NJ – Who Wins?
If you have time, resources, and a market-ready home, FSBO could save you some money—but only if everything goes smoothly.
But if you need to sell quickly, avoid expensive repairs, and keep the process stress-free, selling to a cash buyer is the clear winner.
At Savannah Properties, we buy homes as-is, with no commissions, no repairs, and no hidden fees. If you’re thinking about selling, get a no-obligation cash offer today!