That is indeed the question.
I recently spoke with a young couple who are relocating and must sell their condo.
Exciting, right?
Well...
The couple purchased the condo 3 years ago to the date for $395K. The current comps firmly justified the price of $430K. However, one of the best comps down the street just lowered its price to $417K. Allowing for approximately 5% Realtor commission, this couple has exactly ZERO wiggle room.
Should they let the Realtor earn all of their equity, or go FSBO?
Oh, silly me!
I was trying to put myself in the seller's shoes.
You did not address the question that is foremost in their minds: HOW DO THEY KEEP ANY OF THEIR EQUITY?!?!?!
Yes, that unfortunately is the consequence of the kind of market we are in. I also have a client who purchased a year ago, and, like yours, may have to sell at a loss. In my neighborhood, there are a lot of FSBO homes, and I imagine the sellers are having these types of conversations all over the place, even more so than when the market was strong. It's easier to justify a $30,000 commission when you are netting $150,000, than when you are netting next to nothing. Today, sellers know they will have to lower the price to get a buyer, and they do not want Realtor's commission eating into their gains. This is particularly true when the gains are slim.
We, as Realtors, have a whole range of reasons to explain why we are a better choice than FSBO, but to the sellers, it often comes down to the bottom line.
Thanks for your comments. It's a difficult dilemma.
Comments(2)