|
The Facts About FSBOs
A close look at "For-Sale-By-Owner" (FSBO) data from NAR's 2005 Profile of Home Buyers and Sellers
|
 |
These are some of the questions and reasons why people choose to sell their own home:
1. Feel they can do the job themselves 2. Believe their home will sell itself!
3. Owe too much money to pay a commission 4. Commissions are too expensive!
The truth that you might want to consider is this; over 80% of FSBO's (for sale by owners) end up selling their home through the services of a professional real estate agent, why?
In today's market, with literally thousands of homes in the market and about 4-6 months worth of inventory; homes that are not properly staged, exposed and actively marketed by a professional, simply remain stagnant on the shelves sort of speak. Is like trying to catch the attention of a pretty girl in a dark concert surrounded by thousands, unless you turn the light and make yourself known, she'll never now you like her!
You know that you pay what you get or less. If you are pressed financially, doesn't it pay to get the best deal you can in an ever decreasing market? Can you afford to wait when prices continue downwards?
The cost of commissions is not as expensive as you might think. Did you know that most likely over 90% of the home sold by an agent are sold by buyer's agent? What this means is that say you offer (commissions are usually split 50/50. 50% listing agent - he/she does and invests in the marketing of the property and 50% the selling agent - he/she advertises services and networks for clients) a 5% commission. Which means that the selling agent would collect 2.5% commission to be split with the broker (oh yea! you have to here in Florida) and after paying 15% self employment tax, do you think is a winning proposition to sell a home for a 1.45% profit for your efforts?
Think again, in todays market the homes that are selling are the ones that offer a reasonable return on marketing investment to the selling/buying agent (so they can afford to promote them adequately) and the ones that offer a reasonable price, condition and approachability to the buyer.
Get the best chance in selling your home, hire a true full time professional with the tools necessary to enhance, prepare and expose your home to the buying public. Hire ME!
Each year a small army of home sellers throw caution to the wind and “go it alone” – without the assistance of a licensed real estate professional.
This ever-decreasing band of risk-takers, ventures into the land of pricing, marketing, screening, scheduling, showing and paperwork, with the goal of saving some money. It's often an experience they find less than rewarding.
The numbers (if not the sellers) tell the story.
In 2005 ending, 13 percent of all sellers chose the FSBO (“For Sale By Owner”) route, according to NAR’s 2005 Profile of Home Buyers and Sellers. This is down from about 18 percent eight years ago. But more telling than the decline in FSBOs is the fact that more than a third of all FSBOs sold their homes to someone they knew prior to the transaction. This means that only 8 percent of all home sales are arm's-length FSBO transactions.

From NAR's 2005 Profile of Home Buyers and Sellers
Only half of last year’s FSBOs say they plan to go it alone again, so expect to see these numbers go down even further in the years ahead.
Several factors appear to account for the decline in for-sale-by-owners: the increasing complexity of the transaction process, with more disclosures and legal requirement than ever before; the amount of time required to market and show property; and security concerns about the motivation of strangers dealing directly with owners and walking through their homes.
And, getting back to the money part – after all is said and done, FSBOs don’t always come out with fatter wallets. Again, the numbers tell the truth.
Sellers make more money when they use a real estate professional.
Homes sold with the help of a real estate professional last year sold on average for 16 percent more than FSBO sales. The median FSBO selling price in 2005 was $198,000, compared with $230,000 for agent-assisted transactions.

From NAR's 2005 Profile of Home Buyers and Sellers
Other FSBO Resources:
Talking Points on Consumer Satisfaction with REALTORS®
Field Guide to Working With FSBOs |