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Use a Realtor or Go FSBO in the Montpelier and Barre Area?

By
Real Estate Broker/Owner with Green Light Real Estate

Ahhh...the eternal question.  I fully understand the argument.  Hire a professional and pay the commission (when it sells) or go it alone, and try to avoid the commission.  Our office has some very preliminary sales data from 2009 in Northfield, Williamstown, and Calais.  I preface ALL of my stats by saying that, being Central Vermont, the sample sizes are small.  Not sure if this would hold up to rigorous statistical review.

But anecdotes are worthwhile too.

In all three of those towns, Williamstown, Northfield, and Calais, the difference in sale price between those that sold using a Realtor and those that were "direct sales" was just a hair over 10%.  This suggests that sellers are more likely to ge a higher net price using a Realtor than selling on their own.  To me, that's a pretty clear bottom line difference.  There are lots of variables that can't be controlled for in this experiment.  I'm just relaying the bottom line price differences. 

Once all the town sales data have been put together by our office, I'll put that out too--and maybe in a nifty looking table!  We should all be so lucky...

Become a guru!  Learn all about the Montpelier and Barre real estate market at www.RayMikus.com.

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

How does one get statistics on home that sold without the aid of a realtor??????

Jan 20, 2010 09:06 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Ray....sellers typically can get more money with an agent rather than on their own.....buyers will always attempt to negotiate a deduction of a commission from the fsbo.....however, when we follow the progress of a fsbo, we don't know for sure if an agent slipped into that deal with a buyer....usually it does not happen in my area.

Jan 20, 2010 09:50 PM
Ray Mikus
Green Light Real Estate - Montpelier, VT
Green Means Go!

Lenn--We go to the town clerk's office, get the file of transfer tax returns, and cross reference with sales reported on the MLS.  It takes a little bit of time, but it's really helpful for having a complete picture of the market.

Barbara--I agree.  It does sometimes happen around here where a buyer works with an agent of a FSBO, but it' pretty uncommon.

Jan 20, 2010 11:16 PM
Ronald Borch
WJ Bradley Mortgage Capital Corp, S. Burlington, VT - South Burlington, VT

The first time I put an offer on a house - it was a FSBO.  And I knew the seller.  Nice enough guy - owned a local sandwich shop.  The inspection came back with a lot of problems with the roof and foundation.  The cost to cure was much more than what I had anticipated and what we had agreed in the contract.  The seller was very unreasonable IMHO - he didn't believe the inspector and didn't want to get another inspection.  He tried keeping my deposit held by his attorney.  I had no choice but to sue.  After attorney fees, I got most of my money back, but it was a nightmare.  I'm sure this would never have happened if realtors were involved.

Jan 22, 2010 01:59 AM
Ray Mikus
Green Light Real Estate - Montpelier, VT
Green Means Go!

Ronald--There's that whole side of it too.  Not that transactions using Realtors are always hassle free, but having trained professionals (or at least one, anyway) can really smooth things over.  What a horror story.  Can I use it?

Jan 22, 2010 02:52 AM
Ronald Borch
WJ Bradley Mortgage Capital Corp, S. Burlington, VT - South Burlington, VT

Most are reasonable I would think, but there should certainly be a higher level of "buyer beware" when it comes to working with FSBO sellers, even those you might know personally.   Absolutely, feel free to use...

Jan 22, 2010 04:06 AM