A Few Things to Know About FSBO

 In Home Seller Tips

If you’re thinking of selling your home on your own, you might want to think again. Here are a few reasons why.

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Should you sell your home by yourself or hire an agent? The biggest argument that people give for selling their own home is that they believe they will save money on the commission that an agent charges for getting the home on the market and selling it. However, a new study by Collateral Analytics says otherwise.
 
The study analyzed a variety of markets in 2016 and 2017, with the data showing that FSBO homes tend to sell for lower prices than comparable home sales. In many cases, they sold below the average differential represented by the agent’s commission. Why would a FSBO seller net less money than someone who used an agent? According to the study, there were a number of reasons:


  1. There is a systematic bias on the buyer’s side. FSBO sales tend to attract more strategic buyers and investors than the typical MLS sales. These buyers specifically search for and target sellers who do not have professional representation in order to gain an edge in negotiations.
  1. Experienced agents are experts at pricing. They know what to do in order to get the best price and terms possible on the deal.

“Experienced agents know how to price homes.”

  1. Properties listed on the MLS receive massive exposure. We are able to reach a much larger pool of buyers by incentivizing agents to bring buyers to your home to check it out. With more exposure and more buyers seeing the home, your chances of receiving multiple offers or starting a bidding war go way up.
The study concluded that in 2017, FSBO homes sold for more than 6% less than homes marketed and sold through a professional Realtor. The bottom line is that if you’re thinking of selling a home on your own, you might want to rethink. If you have any questions for us or want to know what we can do to keep more money in your pocket when it comes time to sell, give us a call or send us an email. We look forward to hearing from you soon.
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