For Sale By Owner in Richmond VA
Ouch! I just had a potential client pass me over in listing their Richmond home for sale in favor of going the For Sale By Owner in Richmond VA route. I have to admit, this one stings a bit.
I am all about friendly competition. I truly believe there is enough business to go around for those Richmond real estate agents who are in the field for the right reasons. I have no problem losing out on a listing to another agent, as long as they have the best interest of the client in mind and will give them the same top notch service that I would have provided if presented the opportunity. But, what does worry me is when a self-proclaimed real estate novice decides to go the For Sale By Owner path.
Don't get me wrong, I completely understand why some people select the For Sale By Owner option. This is a tough economy and I too look for ways to cut costs in certain situations. But, if you want to sell your Richmond home for top dollar and in a timely manner, I truly believe hiring a professional Richmond Realtor is the smart decision to make.
You see, according to the National Association of Realtors, "the typical FSBO sold for $150K compared to $215K for agent related sales." Math shows that if an agent assisted home sells for $215K, and lets say the listing commission is a fairly common 6%, then the commission the sellers would pay is $12,900. That means the seller would receive $202,100. Now, compare that to the $150K received for those who did a For Sale By Owner. Do you see that?! According to this data, you just LOST $52,100!
In addition to not receiving top dollar on selling your Richmond home, you also have other challenges you will face when listing as a FSBO. As Marcie Geffner points out in her Realtor.com article, "FSBO Woes: Why It's So Hard to Sell Your Own Home," you won't be able to list your home in the local MLS system as this is only open to licensed real estate brokers and agents. So? Well, that means that your home is virtually invisible to Richmond real estate professionals! This article also suggests that For Sale By Owner's typically overprice their home! Realtor's have unlimited access to homes similar to yours which are active, pending, and recently sold in your immediate area. This information is KEY in determining the true value of your home...without the emotional value you may be prone to give it. Another point that Ms. Geffner points out is that a For Sale By Owner may find themselves in legal territories they are not prepared to handle. There are many disclosures and contract nuances that are encountered in a real estate transaction. Are you aware of all the disclosures that are required?
In the end, not receiving a listing never feels good. But, not gaining one that you KNOW you would make a significant difference in really stinks!
Have you tried the For Sale By Owner in Richmond VA route and are finding it is not for you? Contact your Richmond Realtor at Home Sweet Henrico with Keller Williams Realty Richmond West and let's get started on getting that SOLD sign in your yard!