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For Sale By Owner (FSBO) Continues To Be A Bad Deal For Home Sellers

By Lee Morof

Real Estate Agent with RE/MAX Showcase Homes

March 27, 2008 05:23 AM

Accordingly to the recently released 2007 National Association of Realtors (NAR) Profile Of Home Buyers And Sellers, the number one reason given by For Sale By Owner (FSBO) Home Sellers as to why they attempted to sell their homes without realtor assistance was to avoid paying a commission. An examination of the survey results indicates that home sellers should avoid the FSBO process altogether. First, in 2007, the by owner seller on had a seven percent (7%) chance of selling his or her home to a buyer that they did not know. In addtion, according to the survey, the median sale price was thirty four percent (34%) higher for realtor assisted sales compared to by owner sales. By owner sellers also indicated that the most difficult task they faced was understanding and preparing the paperwork necessary to sell their home.

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Steven Keefe

Coldwell Banker Sky Ridge Realty - Lake Arrowhead, CA

Great statistics. In our market, 25% of listed property. That is properties that are getting marketed to Realtors with buyers are selling. Imagine what the chances are for a seller who has overpriced his home marketing it himself under these market conditions. There is little or no shot in this market for a seller to go by owner. I don't care how many FSBO websites you put the property on.

Mar 27, 2008 05:53 AM

Dave Woodson

Dave Woodson - Chesterton, IN

Not the Average Agent

I agree 100%, but still they need to be shown this statistic and haveing a healthy FSBO campaign can do that

Mar 27, 2008 07:05 AM

Lee Morof

RE/MAX Showcase Homes - Birmingham, MI

Associate Broker, Attorney, CDPE

Steven, it really doesn't make much sense to try to sell your home by yourself. Most who try it invite the bargain hunters, looky lous and con artists into their world.

Mar 27, 2008 08:20 AM

Your'e right Dave. That's why I order the NAR Report every year.

Mar 27, 2008 08:21 AM

Cathy Tishhouse

RE/MAX Showcase Homes - Royal Oak, MI

Royal Oak Real Estate

Statistics always prove our case but when it comes to money (paying commission) FSBOs won't believe the statistics - most people think they are the exception to the rule in many areas of our lives. What I always see is that buyers think the FSBOs will give them a better deal because they are not paying the commission so the price must be less - I try to tell buyers that that is not the case (or maybe it is with the statistics you shared).

Apr 01, 2008 04:55 PM

Anonymous

Cathy, I suspect what happens is that the FSBO seller gets frustrated from not selling (as they typically overprice in my experience) and then drastically reduce the price out of despiration. I think unrepresented buyers are foolish buying a FSBO as they would be guessing as to the home's value and market trends as well as other potential problems with paperwork, inspection issues, etc.

Apr 02, 2008 03:10 AM

For Sale By Owner (FSBO) Continues To Be A Bad Deal For Home Sellers

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