I recently purchased the annual report, “National Association of REALTORS® Profile of Home Buyers and Sellers 2007″. This has been a very interesting book for me and well worth the investment. The National Association of REALTORS® (NAR) conducts research and surveys every year to compile information that is beneficial for REALTORS® as well as the public. The statistics listed in this book are national and it is to be expected that there will be variations from these reports in our local real estate market, but I think that overall, the information reflects trends that are accurate for our area.
One topic covered in the book is the Median Selling prices of For Sale by Owners compared to REALTORS®.
The Median Selling Price if Listed with a REALTOR® is $240,000vs.
The Median Selling Price if sold FSBO is $180,000
That is a $60,000 difference. These numbers are very interesting and I have known about this for some time. The next number, however, is new to me:
The Median Selling Price if Started as FSBO & Then Later Listed with REALTOR® is $190,000
Wow! This research from the NAR shows that if a home is listed as a For Sale By Owner (FSBO) first, and then later listed with a REALTOR®, the Median Selling price was still $50,000 less than those who listed with a REALTOR® from the start.
It is interesting to to have actual research to show why using a REALTOR® is the best option. I have been talking to FSBOs for years and I always get the same response. “We want to try it on our own for a while and if that does not work, then we will list with an agent.”
The information I have been talking about shows why that is not a good strategy. Keeping in mind that this is the national average; so not every FSBO is losing $50,000 on the sale of their home. However, it is such a large amount that I think we can safely assume that FSBOs, on average, lose money. When the most common reason stated for wanting to sell FSBO is “to save money”, I think that this strategy should be reconsidered.
If you are considering selling your home in the near future, it may be well worth your time and money to talk to me first. Read some of my “Letters from Clients” and see what several of my sellers have said about saving money, my professionalism, and service. I would be happy to talk to you about what I can do to get your home sold.