In a conversation I had today with one of my agents, I was asked why would someone list their home FSBO (For Sale By Owner)?
This was my response...
Nationally, the average FSBO gets 29% less for their comparable property than a home listed by a Realtor and make up for only 7% of all recorded sales nationally. In a report published by the National Association of Realtors in February of 2009, the median selling price of an open market FSBO home was $150,100, while the median price for agent-assisted sales was $211,000, as most home owners are unaware of how to properly price the property based upon current market conditions.
FSBO's tend to have a longer time frame on the market due to...
•· less exposure due to no MLS publicity
•· limited website distribution
•· limited market research to advertise to potential buyers
•· no word of mouth advertising between Realtors
•· owners miss out on the vast exposure through media outlets Realtors have access to through social media marketing, blogs, etc.
•· limited availability of showings and feedback due to no lockbox
•· limited or no access to forms
•· purchasers want to negotiate more because of no Realtor involvement
•· owners are not aware of the showing, prequalification and settlement process
Pitfalls to avoid...
•· HOA guidelines, rules and regulations
•· Pre-qualifying or approving potential buyers
•· Reputation of other parties involved - other Realtor (if applicable), lender or loan broker, title company
•· Price or points - what's better?
•· Appraisal (meeting, providing comps, discussing market trends, etc.)
•· Home inspection rules and regulations
•· Time frames and hurdles to jump over to get to closing and what happens if they are missed
•· Who orders what? When?
In the long run, it pays to hire a professional, full-time Realtor to help guide you to a successful sale and settlement. Call us today - Results Realty Group - (703) 652-5777.
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