Mel Ahrens, MBA,  Kelly Right Real Estate, Customized Choices for your Real Estate Needs (Kelly Right Real Estate)

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Rainmaker
1,276,892
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

I don't put any stock in those "averages".  It depends on so many factors that don't apply to individual markets.  Our little market in North Central Washington can in no way be compared to southern California for example.  It's B.S. to compare them.  Besides that, there is no way to prove what a home would have sold for with agent assistance when it was sold FSBO.  The whole premise is faulty on many levels.

Apr 23, 2019 12:33 PM
Ambassador
2,641,306
Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

National stats have very little meaning in local markets.  For that stat to hold true, we'd basically be saying every FSBO is mentally challenged and has no clue in how to determine pricing.  There's just too much information publically available for sellers to reasonably be that far off.  Let's say they used Zestimates to set their prices, they'd still only be 10-15% off, if even that much.  So unless the national median price is around 600k (which I don't think it is), then that 65k number doesn't carry water.  Bill

Apr 23, 2019 01:09 PM
Rainmaker
2,971,601
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I don't because it can be a very misleading number. I have no doubt that an agent assisted sale will probably net a seller more than trying to do it on their own, but I don't quote numbers like that. Then again, I virtually never speak with FSBO's and my seller prospects don't typically think of being one.

Apr 23, 2019 01:03 PM
Rainmaker
1,563,205
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Whether or not it's true it would not fit my market Mel Ahrens, MBA, Kelly Right Real Estate Our average home price is just under $200,000.

Apr 23, 2019 12:54 PM
Rainmaker
3,238,750
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

I would tend to ignore such information if I was a consumer. If I don't find the info "worthy" it's not going to be repeated.

Apr 23, 2019 02:24 PM
Rainmaker
329,079
San Mateo County Broker Associate Mayra Espinosa
Red C Realty| Call 650-996-8961 - San Mateo, CA
Helping Families Buy & Sell Homes in the Bay Area

NAR stats are nationwide that does not apply to the local market. I use information from our local MLS.

Apr 23, 2019 03:00 PM
Rainmaker
4,866,639
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

no, I don't use anything provided by NAR....  real estate is local.... and I use local information that's from MLS when I share stats....

Apr 23, 2019 02:37 PM
Rainmaker
4,310,343
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Mel,

That is quite a claim to make, and now I would not ever use it.  A

Apr 23, 2019 12:21 PM
Rainmaker
729,360
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

No, because it's total bs that can't be proven. Garbage claims like that just adds to the already negative view much of the public already has towards real estate agents.

Apr 23, 2019 12:25 PM
Rainmaker
5,262,239
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Nope.

Apr 23, 2019 12:23 PM
Rainmaker
732,084
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Personally, I think FSBO's are usually overpriced. I don't use stats like that

Apr 24, 2019 05:27 AM
Rainmaker
349,160
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

No, I don't, Mel.  National statistic is not the same as local.  Also, it depends on the price range of the home.  Here in my market, we can get a home for $250k.  A $64,900 difference is not making any sense, the seller has to be completely desperate to sell that low.  Perhaps if the home needs a lot of repairs and they are selling as is.

Apr 23, 2019 06:01 PM
Rainmaker
392,513
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

No. I don't go after the FSBO market. If I did I would come from contribution - helping them succeed, not from scare tactics.

Apr 23, 2019 02:14 PM
Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I don't do FSBO listings but when I sold traditional real estate they were always the easiest to get under contract below market value.

Apr 23, 2019 12:54 PM
Rainmaker
1,520,996
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Most of what I see coming out of NAR is misleading and puts us on the defensive with the public. NAR does not represent me.

Apr 24, 2019 05:06 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Stats can be misleading.

Apr 23, 2019 07:37 PM
Rainmaker
1,504,595
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

No because I don't believe a word of it. Never saw 'credible' stats to prove it. 

We don't even have mfg. housing in my area so now what on those stats?

Stats can be used many ways - often thrown up in the air.

Don't know any FSBO coaches that use those numbers either.

Apr 23, 2019 05:16 PM
Rainmaker
2,423,256
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

When this approach is taken, the results can go either way. Some may see it as a challenge to their capability while others will see it as a warning not to

Apr 23, 2019 02:06 PM
Rainmaker
1,477,296
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

No.

Apr 23, 2019 12:31 PM
Rainmaker
2,940,297
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I have my own marketing plan for fsbo's and dont use national averages. It is true that fsbos sell for less and most fsbos i speak with have already tried, and found it harder to sell on their own than they thought

Apr 24, 2019 05:20 AM
Rainmaker
910,617
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

it is up to 13% not a dollar amount until you know the market for each.

Apr 23, 2019 11:21 PM
Rainmaker
1,817,016
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I’d rather look at what % of FSBO’s actually do succeed in selling their home themselves. It’s less than 15% !!!

Apr 23, 2019 05:53 PM
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Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

No. I would not use a national stat (or one made up) to impress home sellers. FSBO's think they are saving money by taking agents out of the equation and their properties are often so overpriced that true market comps may not convince them to list either.

Apr 24, 2019 06:12 AM
Rainmaker
3,164,882
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Nope, never did when I worked with some FSBO's. While it may be an average, not such how much application is has for the local market.

Apr 24, 2019 03:56 AM
Rainmaker
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Richard Weeks
Dallas, TX
REALTOR®, Broker

I would if I worked that market.

Apr 24, 2019 03:25 AM
Rainmaker
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Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I do not go after FSBO's  

Apr 24, 2019 05:20 PM
Rainmaker
521,711
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Thanks for the link to the full report. I don't use that FSBO stat in my presentation although I do have other NAR statistics in there that I will be updating for 2018. 

Apr 24, 2019 08:42 AM
Rainmaker
2,762,979
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I just don't put any energy on what NAR does and the many deceptions in the world.  The NAR report means nothing to me - not relevant in my market.

Apr 24, 2019 07:59 AM
Rainmaker
724,099
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I wouldn't buy those numbers. Plus, some of the "higher" price goes to pay the agents.

Apr 24, 2019 07:17 AM
Rainmaker
743,047
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

You bet!

However, the smart agent must be prepared for the squeeze and substantiate this Vanity Metric with local data the homeowner will believe.

Telling a homeowner they are wrong in the decision they have made often ends with the confirmation, for them,  of what real estate agents are made of....vanity.

For such averages to work, a group must agree on what the local average home is. That rarely includes the house segment the FSBO belongs to.

I quote NOTHING from NAR but do use local STATS. And I do love using the stats of those agents who sold the house in 2 days. That data is even more damning and much more believable by a homeowner than what spews from the office of NAR.

Apr 24, 2019 04:53 AM
Rainmaker
1,210,414
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Two other things to consider, the majority of homes are sold with an agent.  More homes = wider price points and more to draw on.

Second thing, the price points.  I've never seen a $40 million dollar home listed on Craigslist or Zillow as a FSBO. It just doesn't happen.  Not to mention the $300 million dollar Spelling mansion or any of the celebrity homes you see listed in the eight figures.  Of course listed homes will sell for more on average, because they have a several times multiplier of homes sold and they have homes that are priced for the 1% of the 1%.

Apr 24, 2019 10:46 AM
Rainmaker
983,908
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Most old timers gains 7 figures and the commission to list is negotiable. Is 0.5% too high to seller?

Apr 24, 2019 07:39 AM
Rainmaker
4,019,646
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Real estate is local, so I use the stats that would include a specific neighborhood or area.

May 07, 2019 02:20 PM
Rainmaker
3,063,664
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Mel,  No but good information and something I should.

 

Apr 30, 2019 10:16 AM
Rainmaker
650,306
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

No thoughts since I have never worked with a FSBO.

Apr 25, 2019 07:58 PM