Loading ...Thinking About ‘For Sale By Owner’ (FSBO)?
December 13th, 2007 by David | 318 views |
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Each year, many do-it-yourself-ers eager to save money take the plunge by trying the ‘ole “For Sale By Owner” route to sell their home. These brave soldiers venture out into the marketplace, to face head-on, the duties of marketing, pricing, showing, negotiating, scheduling, screening, and paperwork. Though I do give them credit for their motivated efforts, many FSBO’s must learn by trial and error, the value of a real estate professional.
FSBO sales in 1987 (20%) … in 2006 (12%)
40% of all FSBO’s sold their home to someone they knew prior to the sale. Therefore only 7% of all home sales in 2006 were FSBO’s sold on the open market. The other 5% of FSBO’s were simply private sales without a real estate agent involved.
Homes sold with the help of a real estate agent in 2006 sold on average for 32% more than FSBO sales. The typical FSBO home sold for $187,200 compared to $247,000 for agent-assisted home sales.
This statistic means that even if you ARE successful in selling your home on your own, you won’t necessary save any money. What if you just did all that work and netted the same amount as if you hired a real estate agent, how much would that suck? This is the reason why a GOOD real estate professional will always have a job.
FSBO Methods Used to Market Home:
- Friends/neighbors (53%)
- Yard Sign (51%)
- Newspaper ad (31%)
- Open House (29%)
- Listing on the Internet (22% )
Most Difficult Tasks for FSBO Sellers:
- Preparing/fixing up home for sale (18%)
- Understanding paperwork (16%)
- Getting the right price (11%)
- Attracting potential buyers (9%)
- Having enough time to devote to all aspects of the sale (9%)
***Data provided by 2006-2007 National Association of Realtors
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This entry was posted on Thursday, December 13th, 2007 at 1:10 am and is filed under For Sale by Owner (FSBO), Real Estate Stats, Selling a Home. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
December 16th, 2007 at 8:27 pm
Most people ignore these stats, but they try it anyway hoping that they will not have to pay the real estate commission by getting lucky and selling it themselves.
December 16th, 2007 at 8:28 pm
Clients tell me that when they approach FSBO’s the sellers seem desperate and unsure of their position on price as well as other aspects of sales. Interestingly, my clients are turned off by the sellers’ lack of confidence. Buyer-clients appreciate agent professionalism.
December 17th, 2007 at 3:35 pm
[…] things first, you must hire a good agent to sell your home. ‘For Sale By Owner’ (FSBO) is less prevalent now-a-days and 85% of FSBO’s end up listing with an real estate agent […]