Selling your home yourself sounds like a good idea.
FSBOs (For Sale by Owners) think they will save money, but do they?
FSBOs (For Sale by Owners) think they will save money, but do they?
The obvious reason a seller decides not to use a Realtor is in the hopes of saving a commission. It only makes sense, we all want to save money. But does it work?
- Does the seller know more about marketing than a full time professional Realtor?....No.
- Does the seller know about all the forms, disclosures, contracts?....No.
- Does the seller feel good about letting total strangers into his home unescorted?....No.
The reason sellers decide to market their own home is in the hope of saving a commission.
89% of all buyers use a real estate agent to purchase their new home. That means that only 11% of all buyers are looking at For Sale By Owners. Why are these particular buyers not using a real estate agent?
- Does the buyer know all the available properties in his area?....No.
- Does the buyer know how to negotiate the best deal?....No.
- Does the buyer know about the contracts, inspections, and mortgage issues?....No.
The reason buyers decide to buy a home without an agent is in the hope of saving a commission.
The bottom line is this, a FSBO hopes to save paying a commission. Well guess what, the 11% of all buyers who will consider a FSBO, they want to save that same money. That's why they are looking at FSBOs without the assistance of a Realtor. Homes listed by a real estate agent sell for an average of 3% less than the asking price. FSBOs sell for an average of 13% less than the asking price.Last year about 8% of all home sellers sold their homes without a real estate agent. That's down from 13% in 2006.
FSBOs were a bit older (a median age of 54 as compared to 48) and had significantly smaller incomes ($30,200 less) than those sellers who hired an agent. The median FSBO selling price of $132,800 fell well short of the $160,000 median price for agent-assisted sales.Time on the market is a critical issue.
FSBO properties take almost 30% longer to sell than those listed by a Realtor. Lawsuits are not uncommon when it comes to selling property. Most FSBOs know nothing of the proper forms, timetables, repair negotiations, importance of a good seller disclosure, closing procedures.
What about the issue of security? A FSBO must let any and all people who come along into their homes unescorted by a professional real estate agent.
Its not uncommon for FSBOs to enter into contracts with buyers who have not been qualified. This takes their homes off the market, only to be disappointed weeks later when the buyer is rejected by the lender.
7 out of 10 FSBOs eventually list their property with a Realtor. But only after 8-12 weeks of disappointment trying themselves.
Call a Realtor who has been in the business for many years, right here in the North Texas market and let them assist you in selling your home. You will make more money in less time with less hassle than by trying to sell it yourself.
For more information on selling your own home click on the following link: http://www.joeywomblesellshomes.com/silver_fsbo.asp
If you have other questions regarding the buying and selling of property, click on the link below: http://www.northtexasrealestatehotline.com/
