FSBO vs REALTOR
Debunking the For Sale By Owner Myth with Facts
FOR SALE BY OWNER VS REAL ESTATE AGENT/MLS
Recently, my cousin was conversing with a friend and asked to share my thoughts on selling by owner verses listing through an experienced agent and MLS.
To begin with the Boise Real Estate market is RED HOT presently. A flood of out of state buyers are relocating to Idaho due to QUALITY OF LIFESTYLE. Idaho ranks at or near the top of lifestyle lists.
*I have reviewed at least 10 studies over the years that statistically support that an agent nets more for the seller that a For Sale by Owner! Links to the articles are below.
Here are just a few of the reasons cited…
1.
Agents get top current market value based on very recent MLS sales data. Our residence jumped up $40K just in the past few months. Due to high demand, often listings are getting multiple offers at higher than the listed price.
2.
We expose a listed property through agents on MLS to every instate and out of state buyer in the market. FSBO exposure is limited.
3.
We take away the ability for the buyer to negotiate directly with the seller. We know how best to negotiate price, points and closing costs for the seller’s best interest and advantage.
4.
We open the title escrow closing and review all the costs on the closing statement to make sure they match the purchase agreement terms exactly. Most sellers only sell one or two homes in a lifetime. I have handled over 800 residential sales. Experience doesn’t cost, it pays the seller in net dividends.
A FSBO may never discover know how much $$$ they left on the table. One last thing. Why would any potential buyer buy from a FSBO unless their sole purpose was to BUY FOR LESS?
They can have their agent do all the searching, previewing, showing, writing the offer and it doesn’t cost them, the sellers pay the commission. The only incentive the buyer has is to buy the home cheaper, so the first thing their offer deducts is a 6% commission, they often ask for mortgage points and may ask to have the seller pay the buyers closing costs.
Many FSBO sellers hire an attorney to review or write up an offer that protects the seller. They also have them involved in negotiations and often have them review all the final documents prior to signing.
For most Americans, their home represents the single largest asset they will ever own. Consider if it is worth the risk of DIY?
I have always listed my personal properties for sale on MLS. I gladly pay the commission.
ARTICLES TO REVIEW
https://realestatedecoded.com/do-real-estate-agents-really-sell-homes-for-13-percent-higher-prices/
https://www.homelight.com/blog/fsbo-vs-realtor/
https://theamericangenius.com/housing/big-data/2020-nar-report-breaking-down-fsbo-homes/
https://www.upnest.com/1/post/reasons-fsbo-sellers-should-reconsider-hiring-a-realtor/
https://www.inman.com/2020/01/16/7-reasons-for-sale-by-owner-transactions-fail/
There are some absurd, unsubstantiated claims that an agent can net 13%-30+% more than a FSBO. Those are exaggerations. Most concur that in the worst-case scenario, the Realtors nets an equal amount for the seller as a FSBO. The key point is the seller invests all the time, effort and does the work and does not realize any additional proceeds.
Comparing experience with 2-3 home transactions with an agent who has hundreds or thousands of successful home transactions is financially risky, as noted above.