For Sale By Owner Factoids
Here are the latest facts on why unrepresented sellers, popularly known as For Sale By Owner or FSBO's, should probably hire a real estate agent:
According to the National Association of Realtors' (NAR) Profile of Home Buyers And Sellers Report ...
1. About 10% of all properties for sale at any given time are FSBO's.
2. Of that 10%, only 13% will successfully manage to sell the property on their own.
3. Just over 87% of FSBO's end up selling their property through a real estate agent.
In a softening market like we're in now with vastly more homes for sale than there were a year ago and vastly fewer qualified buyers, why would you want to try to sell a residential property without the aid of a professional realtor?
If it is just to save the commission, you need to know this little factoid from NAR: Professional real estate agents manage to sell comparable property for an average of 16% more than an owner will get.
Now, if the real estate agent gets 16% more for the property and the selling commission is 5 to 7 percent, it means that on average the real estate agent is going to net the owner from 11 to 9 percent more money at closing (other things being equal). That additional profit more than covers the amount paid in commissions, doesn't it?
Plus, the agent is probably going to sell the property faster because he has access to more marketing programs than an owner does, the agent is going to pay for all the marketing costs, and the agent is going to do all the work. How do you beat that?
If you'd like more information on real estate, visit my website at www.thestpeterealestatesite.com.
According to the National Association of Realtors' (NAR) Profile of Home Buyers And Sellers Report ...
1. About 10% of all properties for sale at any given time are FSBO's.
2. Of that 10%, only 13% will successfully manage to sell the property on their own.
3. Just over 87% of FSBO's end up selling their property through a real estate agent.
In a softening market like we're in now with vastly more homes for sale than there were a year ago and vastly fewer qualified buyers, why would you want to try to sell a residential property without the aid of a professional realtor?
If it is just to save the commission, you need to know this little factoid from NAR: Professional real estate agents manage to sell comparable property for an average of 16% more than an owner will get.
Now, if the real estate agent gets 16% more for the property and the selling commission is 5 to 7 percent, it means that on average the real estate agent is going to net the owner from 11 to 9 percent more money at closing (other things being equal). That additional profit more than covers the amount paid in commissions, doesn't it?
Plus, the agent is probably going to sell the property faster because he has access to more marketing programs than an owner does, the agent is going to pay for all the marketing costs, and the agent is going to do all the work. How do you beat that?
If you'd like more information on real estate, visit my website at www.thestpeterealestatesite.com.
-30-
posted by Terry Ward at 6:18 AM
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