3 Ways Real Estate Agents are better than FSBO's
Did you know that only about ten percent of people try to sell their own homes? In fact, the total number of FSBO property sales has fallen from 20 to just nine percent in the past decade.
There’s a reason for this. According to the National Association of Realtors (NAR), the average For Sale By Owner (FSBO) home sells for $40,100 less than a home listed by an agent ($174,900 compared to $215,000).
One possible reason for this price differential is that, on average, FSBO homes take 19 more days to sell, and more time on the market means a lower selling price. Furthermore, 20 percent of FSBO properties end up relisting on the MLS, converting to an average of 68 days longer on the market than Realtor properties. Overall, a typical Realtor will help you sell your home in 69 days, whereas a FSBO home will take 88 days to sell.
It’s no mystery why FSBO homes take longer to sell, thereby depreciating in price: 70 percent of those trying to sell their own homes said that they had significant difficulty selling. Well, duh! FSBO sellers are the equivalent of amateur athletes competing against the pros.
According to the NAR study, 19 percent found the most difficult task to be drawing up and understanding the contracts and legal paperwork involved in selling a home. Meanwhile, 15 percent had difficulty getting the right price for the property. This is most likely due to the fact that those selling their own homes rarely have access to data on comparable homes in the area, therefore pricing based on emotion instead of market factors.
Furthermore, 15 percent of those selling their homes had trouble focusing on what repairs needed to be made in order to get their homes market-ready. Moreover, seven percent had trouble attracting potential buyers due to the lack of promotional and marketing avenues regularly available to Realtors. This is especially problematic because less exposure means fewer prospective buyers which ultimately results in a lower selling price.
Yet another area FSBO sellers had trouble with was their lack of connections in the financing department. Realtors can help both buyers and sellers find the right financing via lender connections, ensuring transactions go through without a hitch.
Lastly, two percent of FSBO sellers reported not having enough time to devote to all aspects of the sale. Negotiations, paperwork, showings, contracts, and working with inspectors proved to take much longer than expected.
The takeaway? Invest in a Realtor when the time comes to sell your home. Not only will you make more money, it’ll be less of a headache! Stats/Content Provided By: Househunt.com