The FSBO Garage Sale Effect

By
Real Estate Agent with Irongate Inc. REALTORS SAL.2006006317

Statistically, Realtors sell homes for more money in less time than a FSBO (For Sale By Owner). How much more? Well, my agency's average sale price to list price is 98% and we sell homes in an average of 78 days. That's very quick considering we have the least days on the market of ALL the agencies in the Dayton area. It is reported that the average home sold by owner sells for 90% of asking price. If those home owners hired a Realtor and paid a 7% commission then they would still pocket 1 - 3% more money versus selling it on their own. The reason? The garage sale effect. Let's say you go to a garage sale, see a brand new chair that you know retails for $100 and they are selling it for $70. What's the first thing you do? Ask if they'll take $60! It's the whole purpose behind garage sale shopping - to find a bargain. It's that very same reason people shop FSBOs - to get a bargain. I am so confident that I will do a better job than those trying to sell their home on their own that I offer 2 unique guarantees. I tell all my clients, if you aren't happy with my services then I will cancel our agreement, no questions asked. I have never had to do so, but I will. I also offer a Sale Guarantee Plan. If I don't sell your home in 90 days then I reduce my commission to 3%. Why would you go through the hassle of selling your home on your own? For more FSBO advice, please check out my For Sale By Owner advice article.

Christina Asad Edwards, REALTOR
2006 & 2007 Sales Masters Top Agent
Christina.AsadEdwards@RealLiving.com
www.teamedwards.info
mobile or text 937-205-4741  office 937-573-0082 
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Blog article provided by Christina Cavins, a Nationally recognized Realtor with Irongate Inc. Realtors. Christina can be reached via email at ChristinaCavins@aol.com or by cell phone or text message at 1-937-205-4741. For Ohio real estate and homes see Ohio Real Estate.

 

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Rainer
32,715
Anthony Dashtizadeh
Garcia Realty Group, Luxury Sales Group - Potomac, MD
(Dash-T-Za-Day)

Great post Christina. I commend you for the stats your agency has on DOM and sales prices.

Jun 19, 2008 10:45 AM #1
Rainer
20,663
The Dave Ruwe Homes Team
Re/Max Lakeshore - Grand Haven, MI
Realtors

Great post Christina and good numbers. I also tell my clients that they can fire me at any time if they do not feel I am performing. I wish our days on the market were in that range. I am in Michigan and the last couple of years have been a little more challenging.....but still good....FYI...I'm from the Cincinnati area...

Jun 19, 2008 01:35 PM #2
Rainer
11,066
Stacey M. McVey
Keller Williams Greater Cleveland West - Westlake, OH

I like your strategy for reducing commission if you don't sell the home in a set period of time. If customers list at the price I suggest, I rarely have anything on the market too long.  It defeats the whole purpose!  They end up with way less in the end.

What I'd like to chime in on here though is the fact that agents tell FSBO's in my market that they will do a deal for pennies ....some even so low that I just flat out can't see how they make any money doing it that way.  It's insulting really.

Jun 20, 2008 03:19 AM #3
Rainer
6,398
Andrew Magliochetti CCIM
Helios Realty and Development - Chicago, IL

Great post.  Those are some impressive stats!

Jun 22, 2008 06:25 AM #4
Rainmaker
184,014
Christina Cavins
Irongate Inc. REALTORS - Centerville, OH
www.BuySellOH.com Search Ohio Homes For Sale

Nike,

Clearly you did not read my blog article and supporting information. It is actually LESS expensive to sell the home with a Realtor. It is a simple supply and demand problem. With 2500 Realtors in the Dayton area and each Realtor representing about 2 buyers at any given time, that means the home would be exposed to 5,000 buyers in the MLS. How much exposure do those free sites give? Not as much, which is why FSBOs sell homes for 10% less than Realtors. On a $150,000 home that is $15,000 less than an agent would sell the home for. You used fizber.com and it worked OK for you, but at what cost? Thanks for the comment!

Christina

Jun 30, 2008 02:24 AM #5
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Rainmaker
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Christina Cavins

www.BuySellOH.com Search Ohio Homes For Sale
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