For Sale By Owner, or FSBO, is the process of selling real estate without the representation of a real estate broker or real estate agent.
According to a recent study done by Collateral Analytics, even successful FSBO sellers achieve prices significantly below similar properties sold on RMLS by a realtor. Some, by up to a 5.5%! Studies also suggest that RMLS sales are quicker, and you will likely avoid things like buyers who feel that they can offer less for your home since you are “saving so much money” on your listing in the first place by not paying a commission.
As a seller, you are not necessarily saving any money by avoiding paying the commission, if you are ultimately netting less on your sale, and according to a 1990 study, less than a third of all FSBO attempts were successful.
Find the full study at www.collateralanalytics.com HERE.
Here’s more insight from our lead buyer’s agent, Ethan Frelly on the topic:
As someone who works with buyers, I personally have seen buyers stray away from RMLS and “try to buy a FSBO” (try being the operative word here). It just rarely works out because of lack of communication, trying to find mutually acceptable time to see the home, or a myriad of other things that listing agents help with.
Our Director of Sales, Mike Rohrig states:
I completely understand the urge of someone to sell a home on their own, from the outside it looks very easy. Just plant a sign in the yard and wait for the offers to pour in is what some people think. We wish it was that easy. I have been doing this for 17 years and I’ve trained a lot of agents, and re-trained experienced agents. It takes time before you become comfortable with the ins-and-outs of a transaction. There is a lot to know and do during a real estate transaction, and if I’m still learning at this point in my career, it just makes sense that a FSBO has a lot to learn if they’ve sold just a handful of homes in their life.
Unlike some agents, we agree that FSBO’s can sell on their own. However, we have always believed that they will make more money with our marketing, knowledge and negotiation skills, and now we have the study that agrees with us.
Our team truly is people first. I know Jaimy has given advice to many FSBO’s that didn’t list their home with him. We believe in doing what’s right, not just what is right for us.
To read the full blog post, CLICK HERE.
Whether you’re considering selling your home with an agent, buying a home, or selling yours for sale by owner- give us a call and let our team work for you!
We will help you make what could be one of the most important decisions in your life, no obligation, we’re here to help. 503-502-3330.
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