Archives for : For Sale by Owner

For Sale by Owner

For Sale by Owner

(FSBO)

The most common reason that an individual lists their property themselves is that they have had bad experiences with Realtor(s) in past dealings.

The next reason is that selling through a Full Service brokerage is too expensive: 6% is still what Brokerages and agents wish to charge for the privilege of selling your property.

I found this link on the benefits of selling your home yourself

Pro’s

It looks like the most common quoted reason is to save $$ – In fact if it goes as planned you can save a significant amount of money and it may be worth the time and effort to get the property sold yourself. If you think about it – on a $500,000 sale you could possibly save $30,000 in commissions alone.

Con’s – I am (of course) not in favor of doing it yourself

  1. The FSBO owner may not know the neighborhood pricing trends
  2. The Average FSBO property sells for significantly less then a traditional sale*
  3. Most (up to 85%) of FSBO properties ultimately are listed by a real estate brokerage, so, in fact the FSBO has failed**

* There are a lot of factors that go into any statistic and this one is no different. it is tough to get a handle on exactly why this is true. If you are “pro-FSBO” you could site that the properties in question may be in lesser condition, more FSBO’s are in rural area, more may be mobile-homes and be of lesser value to begin with.

** NAR Statistic 2012