We've been talking with a lot of homeowners in Edwardsville, Glen Carbon, Maryville, Troy and Collinsville, Illinois lately who have been trying to sell their homes as FSBOs -- For Sale by Owner. Many of them have been frustrated by the process and are wondering why more prospective buyers aren't viewing their homes.
While my partner, Kristina, and I respect their decision to try to sell on their own, we're finding that many homeowners we meet with aren't aware of the success and failure rates in the process.
A new survey conducted this month by HomeGain.com again proves that sellers have a much greater change of getting their home sold using a professional.
In the survey, 83 percent of homeowners said they used an agent to sell their home, whereas 17 percent said they tried to sell it themselves. This closely aligns with results from the 2010 Profile of Buyers & Sellers from the National Association of Realtors, which found 88 percent of sellers were assisted by a real estate agent and 83 percent of buyers bought their home with the services of an agent.
Of the 83 percent of homeowners surveyed who used a listing agent to sell their home, nearly 60 percent were successful. Of the 17 percent who tried to sell on their own, just 39 percent surveyed achieved a sale. That's a 50 percent higher closing rate for Realtor-based attempts to sell.*
“It is especially striking that home owners fare significantly better in selling their homes using a REALTOR® than selling on their own,” says Louis Cammarosano, general manager at HomeGain. “Due to that relative success, the level of satisfaction in the home selling process is also higher for home sellers utilizing the services of a REALTOR® than those who try to sell their homes on their own."
Other findings in the For Sale by Owner vs. REALTOR® survey include:
- 88 percent of home owners who sold their homes using a REALTOR® said they would use a REALTOR® again.
- 24 percent of FSBOs eventually contacted a REALTOR® to help sell their home.
Kristina and I also took a look at the success/failure rate of the biggest flat fee MLS listing service in our area by comparing their listings to their expirations over the past year. Our research found that sellers using the flat fee service in our area had just a one in five chance of achieving a successful sale.
Remember that this flat fee listing service takes the seller's money up front whether the property sells or not (as opposed to a full-service listing in which the seller pays from his proceeds only when the home successfully closes). With this flat-fee service, homeowners pay extra for changes in the MLS or additional photos during the listing period or a variety of other extras. Homeowners using the flat fee service also have to conduct their own showings and open houses, which means a disruption in personal schedules. They also must handle their own negotiations on price and terms and inspection negotiations, often against an experienced buyer's agent. (The flat fee service also suggests that the home seller hire an attorney to review the contract before it is signed -- another expense.) The seller also has to pay a fee to the cooperating brokerage at closing if the buyer is represented by an agent. So when you consider the time and money spent by this point, why not use a full-service agent to make the process easier on yourself and to achieve a higher rate of success?
We'll conduct a complete market analysis on your home to help you place it in a highly competitive position in the local market. We'll market your home aggressively to the widest possible pool of buyers. We'll negotiate with buyers and their agents on your behalf. And we'll negotiate any inspection responses to watch out for your best interest. We'll handle the dozens of details that come up to get you to a successful closing.
In short, we understand why someone might try to sell on their own or with a flat fee service, but if you've tried it and it doesn't work out for you and you still need to sell, please get in touch with us at Nancy@GoshenRealtyGroup.com or 618-791-8007
* Source: “HomeGain Survey Finds Home Sellers Fare 50% Better in Getting Their Homes Sold Using a REALTOR® Than Selling on Their Own,” HomeGain.com (Feb. 24, 2011)
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