by Donny Mak
on Monday, August 6th, 2018 at 1:00am.
Are you selling your home? We're sharing with you 5 reasons why you shouldn't For Sale by Owner (FSBO).
According to the National Association of REALTORS® ,FSBOs earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent. Here's the breakdown:
We understand why sellers tend to want to sell their estate on their own, by doing so you're avoiding the commission fees but even with that factored in FSBOs still make less on their home. Talk to an agent and find out what they suggest for the commission, and then do the math yourself,” researchers write on NAR’s Economists’ Outlook blog. “The closing price for the agent-assisted seller is likely going to be way above a FSBO. [But] in reality, homes sold by the owner make less money overall.” (Source: NAR / REALTORS® magazine). If you're still unsure here are the top five reasons you should sell your home with an agent:
1. Inquiries and Results Come from the Internet Where did the buyer find the home they actually purchased?
49% on the internet
31% from a Real Estate Agent
7% from a yard sign
1% from newspapers
Most real estate agents have an online marketing strategy to sell your home, this is crucial for getting your property noticed by potential buyers.
2. Exposure to Buyers Recent studies from NAR have shown that 95% of buyers search online for a home. Where as 17% find their homes in newspaper ads. As we mentioned before, you should have a strong online marketing strategy in place to sell your home if you choose to go the FSBO route.
3. FSBOing has Become Extremely Difficult The percentage of FSBO has dropped significantly (from 19% to 8%) over the past two decades because the paperwork has increased and become more difficult to handle.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
4. There Are Too Many People to Negotiate With
If you decide to For Sale By Owner, here is a list of some of the people with whom you must be prepared to negotiate with:
The buyer who wants you to cut them a deal
The buyer's agent who represents the buyers best interest
The buyer's attorney (in some parts of the country)
The home inspection companies, which work in the buyer's favor and will almost alwyas find some problems with the house
The appraiser if there is a question of value
Are you prepared for that?
5. Simply, You Net More Money With an Agent When choosing to FSBO many homeowners believe that they will save the real estate agent commission. Buyers look at FSBO because they too want to save on the real estate agent's commision too, realize that the buyer and seller can't both save on commission. Collateral Analytics states that buyers may be costing themselves more by not listing with an agent. One of the main reasons for the price difference at the time of the sale is:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” - by Collateral Analytics
Why would you want to manage all of this on your own when you can hire an agent to handle it for you and not have to pay anything more?
Speak with us or a real estate agency in your area and see what they have to offer.