Every year there are a small number of people who decide to try amature real estate and they often walk away less than satisified. We would call them FSBOs or (For Sale By Owners). These sellers that try to sell their homes without the aid of a licensed real estate in the hopes of saving some money bite off more than they can chew. Not only do these homeowners need to prepare the home for sale according to today’s buyer’s preferences but they have to venture into the land of pricing, marketing, screening, scheduling, showing and paperwork.
The National Association of Realtors researches and surveys these sales every year. For the past six years, their research has concluded that homes sold with a Realtor (R) tend to net the seller an average of 15% more than those homes sold by the owners themselves. It is all a perception game. Check out this excerpt from one of NAR’s articles on the subject. The numbers say it all.
But more telling than the decline in FSBOs is the fact that 40 percent of all FSBOs sold their homes to someone they knew prior to the transaction. This means that only 7 percent of all home sales are open market FSBO transactions. The rest are simply unrepresented sellers in private transactions.
From NAR’s 2006 Profile of Home Buyers and Sellers
Eighteen percent of FSBO sellers indicated that preparing the home for sale was the most difficult task when selling without the assistance of an agent, followed closely by understanding and performing paperwork (16 percent) and selling within their desired time frame (15 percent).
As for profit — after all is said and done, FSBOs don’t always come out with fatter wallets. Again, the numbers tell the truth.
Homes sold with the help of a real estate professional in 2006 sold on average for 32 percent more than FSBO sales. The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions. To read full article, click here.
We often meet sellers who have unsuccessfully attempted this task and have now turned to a high octane agent who can move their home quicker and for a higher price. Not too long ago one such seller in West Ashley SC sent me a picture that speaks a thousand words. We sold there home in less than 30 days and in the midst of moving out they came across their old FSBO sign. To the right is the photo they sent me.
If you are considering selling your home For Sale By Owner. Take my advise and think twice about it, meet with a realtor in your community, then make a decision.
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Drew Sineath – A Familiar Face…And a Rich Lowcountry Heritage Drew Sineath & Associates, Inc., is located in the heart of Goose Creek where Drew grew up and where he has chosen to rear his own family. Berkeley County is one of the fastest growing areas in SouthCarolina and Drew is pleased to be able to serve his clients in helping with all their real estate and mortgage needs. So when you have any real estate needs, whether you’re looking to buy, sell, finance or refinance, Drew Sineath& Associates is now a local one-stop location with excellent service.