The Market Is Hot – Is It Smart To Go FSBO?

The market is hot in the downtown Seattle area as well as the Eastside. Many sellers are considering selling FSBO to save money. Market inventory is low, and agents and buyers have been known to approach potential sellers to encourage a private sale. Is it a good idea?
The best answer very well may be a resounding “no.” Top real estate experts are saying that the greatest expense a seller faces in this current market is the money they would lose if they do not get full market exposure.
According to Realtor.com “Statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket. According to the National Association of Realtor®’s 2016 Profile of Home Buyers and Sellers, the average FSBO sales price was $185,000, while the average price for a home represented by an agent was $245,000. That’s a difference of $60,000!”
I know my marketing plan has helped my sellers get top dollar in several different neighborhoods.
The KCM blog has an overview of five reasons you may not want to go FSBO:

In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.
Here are five of those reasons:
1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies, which work for the buyer and will almost always find some problems with the house
• The appraiser if there is a question of value
2. Exposure to Prospective Purchasers
Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
3. Results Come from the Internet
Where do buyers find the home they actually purchased?
• 44% on the internet
• 33% from a Real Estate Agent
• 9% from a yard sign
• 1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
4. FSBOing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You Net More Money when Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000.
Bottom Line
Before you decide to take on the challenges of selling your house on your own, sit with a reputable real estate professional in your marketplace and see what they have to offer. I’d welcome the opportunity to share a marketing plan that has helped my sellers obtain top dollar for their homes.

Comments

  1. Hi colleagues, how is all, and what you desire to say about this paragraph, in my view its in fact remarkable in support of me.

Speak Your Mind

*