Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars—for
For Sale By Owner
Dated: September 30 2017
For Sale by Owner (FSBO) is a term used to refer to properties sold solely by the owner, not represented by a real estate agent. This can be an attractive thing when you consider the cost of commission. Do you really want to pay someone else part of your homes return? If you consider that 6% of $300,000 Is $18,000, the FSBO transaction looks more appealing. But is it worth it?
Collateral Analytics came out with a study comparing FSBO transactions and those aided by real estate professionals during 2016 and part of 2017. They collected data from 13 different counties throughout the United States. In the study, they found that FSBO properties on average sold at significantly lower prices. The FSBO properties overall sold for 5.5% less. That is almost the average real estate commission for a sale. Their 2017 data suggested an even higher (6%) average sale price difference between FSBO and Agent aided transactions. You can find the study “Saving Real Estate Commission at Any Price” at collateralanalytics.com.
A real estate professional’s presence in a transaction has a significant effect on the return. The agent’s study of the market, strategies, publicity, open houses, showings, paperwork, advice, negotiations, etc., everything they do to sell the property, affect the outcome as shown in this study. Property owners who choose to sell without a professional may in fact be taking on a lot more work with little to no return, and in the worst cases may even see profit losses. Based on these stats, a real estate agent, you could say, pays for themselves.
If you know someone looking to buy, sell or lease, give me a call. Let me get you the best price!
Keeping you informed,
Donna L Bovee
Team Price Real Estate
Price Commercial Real Estate