Realtors vs. For Sale By Owner
Let us see if selling your home by your self is really cheaper as compared to selling it through a realtor.
It has been discovered through research conducted that FSBO (For Sale By Owner) takes longer to sell, in addition to the fact that about 21% of them end up being listed on MLS. This leads to an average of 68 days longer as compared to realtor properties. So, with a realtor, the property spends approximately 69 days on the market, while with the property being sold by the owner, (FSBO), it spends as long as 88 days on the market.
With respect to pricing, records from 2012 revealed that FSBO contributed as low as 9% of the property listings on the market. It also had a significantly lower selling price on the average. The realtor averages over 18% in sales value over FSBO. This transforms to the owner selling a property at $174,900, while the realtor sells the same property at $215,000.
Statistics has revealed that in the last decade, the total number of properties listed for sale by the owners has dropped from 20% to 9%. This discover is also underscored by the NAR’s 2012 data, which shows that over 69% of FSBO admitted to having significant difficulties in selling off their properties.
What Factors are Involved
Understanding the details of paper work is crucial to succeeding. 19% of FSBOs were faced with problems of putting together the terms of the sales and having an in-depth knowledge of the legal requirements involved in the sales of a home.
Over 14% of FSBO soled their homes based on emotions instead of the prevailing market price. It is a rare instance for the owner of the home to have access to reliable data with to compare prices in the area.
There are things that must be put in place to make a property worth its full potential. 15% of FSBO lacks this knowledge, hence they invest in the wrong areas.
Connection is key, it is important to get financing and connect buyers to sellers. Realtors can leverage on this because they have the connection but owners cannot.
The marketing skills required to make a sale can only be found with realtors. The internet is the best tool for FSBO, but the realtors has a variety of tools.
Selling through the FSBO route is risky because it takes longer to sell through that route. There are serious commitments that need to be made when selling a property like paying attention to every details. This can be a burden especially if you have not sold a property before.
Less than 3% of FSBOs were faced with smaller issues like negotiating, settling property inspectors and other miscellaneous issues needed to seal the deal. Although not every FSBOs have challenges with selling their homes, over 25% of FSBOs did not know the buyers report to have a smooth property sale.