FSBO vs Realtor®, Which One Will Get You More Money?

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Real Estate Broker/Owner with DMK Real Estate Ct RE Broker 0789963
http://actvra.in/4tkN

FSBO vs Realtor®, Which One Will Get You More Money?

FSBO guru Colby Sambrotto founder of the largest website for home owner sales (ForSalebyOwner.com) used a Realtor® after unsuccessfully trying to sell his own home for six months.  According to the WSJ article the local real estate agent was successful in marketing the property and ended up with multiple offers and closed $150,000 above the original asking price.

According to the 2013 National Association of REALTORS® Profile of Home Buyers and Sellers report the statistics show that 2013 FSBO’s accounted for 9% of home sales which has steadily been decreasing from a high of 14% in 2003.

The report shows that the typical FSBO home sold for $184,000 compared to $230,000 for agent assisted home sales.  For the home seller that is an average gain for Realtor® assisted sales of $46,000 that more than covers a 5% or 6% commission (5% commission on $230,000 is $11,500, 6% commission on $230,000 is $13,800).

The report shows that FSBO methods used to market the home was relied over 60% of the time using yard signs and friends/relatives/neighbors for selling.  The benefits of using a local professional Realtor® are shown in this report by using their experience, knowledge and ability to market the home.  While a FSBO seller is like a single fisherman casting for fish, using a Realtor is like having a whole fleet of fishing boats who selectively will cull out the best offers and qualified buyers for a home seller.

A true life story from FSBO sellers in Des Moines, Iowa shares their experience as For-Sale-By-Owner and why after six months decided to hire a Realtor to successfully sell their home.

From the article here are some of the lessons learned are:

  • Homeowner become emotionally attached to their homes and become starry eyed on value of their home, a good Realtor® will talk you through the real numbers.
  • House sales is about numbers, the more people who can find your home the more likely you will sell. That is why listing the house is so valuable and with over a million Realtor® nationwide who are paid members of your local MLS. The seller will be able to attract many many more qualified buyers thus getting the best selling price for the market.
  • Your Realtor® is a professional who specializes in real estate and will earn their keep by assisting you with marketing, pricing, the offer/counteroffer, paperwork and inspection process.
  • The advice of an experienced local Realtor® can ultimately save you time and a lot of hassle, it is worth the commission paid.

 

Article written by David Popoff, Connecticut licensed real estate broker.

 

For local experienced real estate services  in lower Fairfield County, Connecticut contact DMK Real Estate serving Greenwich, Stamford, Darien, Norwalk, New Canaan, Wilton, Westport and Fairfield.

 

Cell ~ 203-228-0646   www.DMKrealestate.com

Posted by

David Popoff
Connecticut Licensed Real Estate Broker
Realtor® Green
Seller Representative Specialist
Accredited Buyer Representative
candidate
LEED AP Homes

 

DMK Real Estate, Darien, CT.
Cell (203) 228-0646
DMKrealestate.com

 

 

 

DMK Realty, 06820 

 

 

 

 

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Rainmaker
248,936
Steve Kantor
BEST AGENT BUSINESS - Bethesda, MD
Best Agent Business - Virtual Assistance

Ah, the irony...that's like the story I heard on the news this morning that Ben Bernanke couldn't get approved for a re-fi on his mortgage. I guess Mr. Sombrotto learned the lesson that you get what you pay for. Thanks for sharing, David.

Oct 03, 2014 12:09 AM #1
Ambassador
2,470,929
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The people that try to sell it themselves are typically those that don't like the real price the agents give them and feel alone they can sell it higher and save the commission. Not a very wise decision

Oct 03, 2014 12:25 PM #2
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi David.  Realtors get sellers more money.  Period

Oct 03, 2014 08:57 PM #3
Rainmaker
2,427,966
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

In their haste to save money they often lose more than if they just did it right. A good listing agent should mor ethan cover their fee with a higher price and quicker sale. Less potential buyers usually mean lower sales prices. 

Oct 05, 2014 10:54 PM #4
Rainmaker
807,285
Bob Ratliff
Canyon Vista Realty - Bandera, TX
"Sold on Bob"

FSBO often try to net the saving by not hiring an agent. I'm sure there are a few who might succeed. Letting emotional attachment to their home and realistic pricing by hiring an agent will help net more in the long run.

Oct 07, 2014 10:34 PM #5
Rainmaker
760,277
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Most FSBO do not realize that buyers are smart and will deduct the selling commission off of their offer.

Oct 07, 2014 11:09 PM #6
Rainmaker
1,565,108
Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

I'm seeing less and less FSBO's. Why anyone would want to sell the most expensive investment they own on their own and take that risk is beyond me. You support your data David will factual information and great advice.

Oct 07, 2014 11:39 PM #7
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Rainmaker
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David Popoff

Realtor®,SRS, Green ~ Fairfield County, Ct
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