Selling your Costa Mesa home yourself is responsible for most FSBOs (“For Sale by Owner” offerings, pronounced “Fizz-BOW”). It’s the arithmetic that comes with selling yourself that seems at least worth considering—the attractive notion of avoiding paying commission dollars to a real estate brokerage. Real estate commissions in California are negotiated—usually 5%-6%. For a home that closes at $300,000, the idea is for a thrifty FSBO seller to pocket $15,000 to 18,000.
Actually, no—at least for most sellers.
Since 87% of buyers choose to hire a licensed Costa Mesa Realtor® like TheL3 to represent their interests, that agent can be expected to require FSBO owners to agree to compensate them for their services. Since that one agent can wind up doing the work normally handled by two, that commission could be at least the customary split of 50%—in which case the FSBO owner actually “saves” only $7,500-$9,000.
Even so, there remains a hefty sum. So why do FSBOs account for only 7% of home sales? That top-heavy result is easier to understand when you consider the recent finding that “nine out of ten FSBOs end up hiring an agent themselves.” That’s pretty close to the latest NAR finding that 91% of all sellers were assisted by a costa mesa real estate agent.
The bottom line reason is: in 2017, even for the small number of FSBOs that did sell, the typical FSBO home closed for $200,000—contrasted with the $265,500 for agent-assisted homes. Many of those hoped-for “savings” of $7,500-$9,000 would have been costly indeed!
If you plan on selling your own Costa Mesa home any time soon, before you decide on your best course of action, I hope you will give TheL3 an opportunity to put together a marketing plan. It will detail the latest comparable research pointing to how we might expect your property to perform. Of course, there’ll be no obligation!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com
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