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In 2018, 89% of homeowners in the real estate market nationwide sold their home using a real estate agent or broker, according to the National Association of Realtors. 8% of home sellers offered their home For Sale By Owner (FSBO) for the third year in a row. 3% used a different method such as a company provided relocation company.
For Sale By Owner Rates Keep Dropping
The For Sale By Owner rate has been steadily dropping since the NAR first began keeping track in 1981. That year, 15% of home sellers chose FSBO instead of using a real estate agent. By 2007, that number had declined to 12%, and despite the housing market turmoil over the last decade, the rate keeps dropping.
5 Reasons Not to For Sale By Owner (FSBO)
- Sell faster and for more. Simply put, a real estate agent with a strong marketing program can cause your home to sell faster and for market value or better. We pay extra to feature our listings on the top real estate websites and so generate over 100,000 online views per property we sell. As far as I’m aware, our marketing will far exceed anything a FSBO seller can purchase out there or DIY. In 2018 we sold 146 homes in less than 30 days on market and 78 in the first weekend. We averaged 101% of our start price as our sold price!
- Convenience. Good real estate agents help schedule viewing appointments or put “smart” lockboxes on vacant homes only other agents (or those with an expiring code) can access. Then the real estate agents call and email every visitor for feedback to pass it on to the seller. The agent will facilitate the sale, give expert advice, and follow up with buyers on your behalf.
- Networking.Social netwroking.
- Protection.A good real estate agent is your advocate from start to finish, looking out for your interests at every point. As we all know, the buyer does not have the seller’s interest in mind. From offer to repair negotiations and dealing with financing, appraisal, or escrow issues, a good real estate agent will advocate and fight for their seller.
- You won’t save as much as you think, going FSBO. If you are offering your home up for sale FSBO, you’ll find many or most of the FSBO programs out there recommend you offer 2.5% commission to the buyer’s agent. You’ll notice our commission rate is a reasonable 4.5% max. This means we take 2% and give the buyer’s agent 2.5%. So, in most FSBO cases the seller is not saving 6%, 5%, or even 4.5%, they are “saving” 2%. For that 2% we provide incredible (unbeatable) marketing, full representation, negotiations, buyer feedback, scheduling, advice, oversight, and more. There is a reason why we call it reasonable commission.
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