Why For-Sale by Owner Sales Fail

Why For-Sale by Owner Sales Fail (Part 1 of 2)

Why For-Sale by Owner Sales Fail

In the era of DIY blogs, magazines, TV shows and big-box stores, today’s consumer feels brave when exploring options to sell their home. One of the main reasons a Sellers wants to go at it themselves is to pocket the traditional real estate commission. What they fail to realize is that it’s semi-flexible and can be negotiated directly with an agent. The other reason is they know their home best and think they can sell it better than anyone else. Remember, they were sold on buying it in the first place and think there are others like them looking for the same thing. And there in lies a major issue for anyone looking to sell their home – emotion.

FSBO

Going For Sale by Owner sounds great, but nets you less.

There are a select few who think it’s as easy as sticking the sign in the yard and it will sell. Yet they haven’t the foggiest idea what to do. Putting up a sign and posting it online may work for a few sellers, but it’s not ideal. Here’s why. Statistics prove time and time again that using a professional real estate agent will always garner a higher price (and profit) than going at it alone. The different not only covers the commission but also puts more money in the seller using an agent. According to the NAR (National Association of REALTORS) 2013 Profile of Home Buyers and Sellers, the average sold price for a home represented by an agent was $215,000 while the For Sale by Owner or FSBO sales price was $174,900. The difference? $40,100 Let’s look at both examples by the numbers:

FSBO MLS (REALTOR)
Sale Price 174,900 215,000
Gross Difference -40,100 +40,100
Net Amount:
Commission (6%)* 0 -12,900
Net Amount -40,100 +27,200

*Assuming an average commission of 6% or 3% for the Seller’s Agent (Listing Agent) and 3% for the Buyer’s Agent. On paper, you can see why For-Sale by Owner sales fail. The listing choice is obvious. When you finish comparing what you get in addition to a greater net sale price, the choice is obvious.

If you’re a For-Sale by Owner, Contact Us today to learn how we can help sell your home in PA. Get your free market analysis and custom home value report.

For Sale by Owner vs REALTOR

CALL Home Marketsite:866-502-LIST

 

Credit: http://www.realtor.org/reports/highlights-from-the-2012-profile-of-home-buyers-and-sellers

 

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