by Bobby Bryant
Before reading this blog, click this link: http://youtu.be/uh6VpkPKIpU
I’m sure you have seen them in Home Depot, Lowes, or in the front of someone’s yard. The red and white sign that says: For Sale By Owner. The sign even gives its purchaser a small space to write their phone number down so potential buyers can call to inquire about the property. However, I often wonder if these sellers really know what this sign says about them and the house they are selling…
For Sale By Owner (FSBO) Statistics
FSBOs accounted for 10% of home sales in 2011. The typical FSBO home sold for $150,000 compared to $215,000 for agent-assisted home sales.
FSBO Methods Used to Market Home:
• Yard sign . . . . . . . . . . 44%
• Listing on Internet . . . 33%
• Friends/neighbors . . . .27%
• Open house . . . . . . . .19%
• Newspaper ad . . . . . 17%
• For-sale-by-owner Web site . .12%
Most Difficult Tasks for FSBO Sellers:
• Getting the right price . . . 12%
• Understanding and performing paperwork: 11%
• Having enough time to devote to all aspects of the sale: 6%
• Preparing/fixing up home for sale: 5%
• Selling within the planned length of time: 5%
Source: 2011 National Association of REALTORS® Profile of Home Buyers and Sellers
What does all these statistics mean? To some degree, absolutely NOTHING! However, there is a perception. I’ve typically heard anywhere from 15-25% of FSBOs successfully sell their home on their own. To me, the larger issue isn’t whether or not they CAN sell their home on their own, but whether or not it’s worth their while.
If a FSBO sells their home on their own, but an agent could have sold it faster, for more money, and made the process safer and easier for the seller, what was truly gained by handling this yourself?
Typically, buyers that are shopping in the FSBO market tend to be looking for one thing: A DEAL! A buyer, who wants to find the right home for them and wants to take advantage of the full inventory available in the market, will generally hire a professional to help with this search.
Given this fact, being that most buyers have a Realtor, there is a negative perception about working with the owner of a FSBO property. If listed with another Realtor/Brokerage, there are certain ethical creeds that we all must obey and follow to give everyone involved added protection against fraud or any misrepresentations. The local Broker gives their Realtors rules/standards, the local Association, State Association, and National Real Estate Association all have ethical standards govern how Realtors conduct business. All of that goes out of the door if the other side(FSBO) is not a licensed REALTOR.
So, what does all of this mean? Hire a Realtor! Can you sell your own house? Of course!! But, at the end of the day is it worth the time, energy, and headache. Statistically, it takes longer to sell your own house due to the limited exposure and negative perceptions of a FSBO’s. If your mortgage payment is $2,000 a month and you are trying to save money, does it mathematically make sense if it’s going to take you longer to sell your own property? Average MLS listed home in Houston right now is selling in 5.3 months. There isn’t a governing body that accurately and statistically documents the data for FSBO’s but I’m sure a unanimous majority would agree that the few successful FSBO’s sold each year in the United States took much longer.
I conclude this blog with another article about Colby Sambrotto, the Founder of ForSaleByOwner.com who decided to hire a Realtor to sell his condo instead of using the company he founded. Click this link: http://moneyland.time.com/2011/08/17/fsbo-com-founder-sells-condo-%E2%80%94-using-real-estate-agent/
CALL iBuy Realty to discuss your options to get optimal exposure and get your house SOLD. We offer four(4) Seller Package to preserve your hard earned equity depending on your individual needs. Vist our website at www.ibuyrealty.com or call us TODAY @ 1.888.870.iBuy(4289).
You are going to love our service and the savings! Rethink. Real Estate.
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