If you need assistance, please call 941-626-3069

For Sale By Owners Net LESS MONEY

Thursday, May 24, 2018   /   by Sal Giuliano

For Sale By Owners Net LESS MONEY


Selling Your House on Your Own Could Cost You



Selling Your House on Your Own Could Cost You | MyKCM


In this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a For Sale by Owner (FSBO). They rationalize that they don’t need a real estate agent and believe that they can save the fee for the services a real estate agent offers.


However, a study by Collateral Analytics reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.


In the study, they analyzed home sales in a variety of markets. The data showed that:



“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)


Why would FSBOs net less money than if they had used an agent?


The study makes several suggestions:



    • “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.

    • “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.

    • “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.


Conclusions from the study:



    1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.

    1. The data suggests the average price was near 6% lower for FSBO sales of similar properties.


Bottom Line


As Dave Ramsey, America’s trusted voice on money, explains:



“Research has shown that, between mistakes, lack of negotiating skills, pricing errors and general exposure on the market, you’ll cost yourself more than the real estate commission…You’ll come out slightly better and with a lot less hassle if you use a top-shelf agent.”

Elevate Real Estate Brokers
Sal Giuliano
3923 S San Mateo Drive
North Port, FL 34288
941-626-3069
HWA_13mo_Logo.jpg_11_10_2016_8_35_28_AM.jpg
Kim Hibbs
Account Executive
Kim.Hibbs@hwahomewarranty.com
Cell: 512.987.4884
Customer Service: 888.492.7359
https://www.hwahomewarranty.com/


Betty Kedziora
Loan Officer
Office: 941.538.6123 <941.538.6123>
Mobile: 630.625.2435 <630.625.2435>
Fax: 941.256.2558
Betty.Kedziora@LHFS.com
NMLS #: 408864

© 2020 My Florida Regional MLS DBA Stellar MLS, Inc.. All rights reserved. The data relating to real estate displayed on this website comes in part from the Internet Data Exchange (IDX) Program of My Florida Regional MLS DBA Stellar MLS, Inc. All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified. Listing information is provided for consumers' personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law.9/25/2020 5:44 AM CST
This site powered by CINC: www.cincpro.com