As you may already know, FSBO is common lingo for home-owners who decide to sell without the help of a real estate agent. It comes from the abbreviation For Sale By Owner. Since a lot of our clients have been disillusioned FSBOs, we’ve gathered a little insight as to why any seller would want to go it alone, without the help of a tested professional.
Primarily they hope to save an agent’s commission, usually about 6% of the closing price. They may also think that the process will be simpler by handling it themselves. But what they’re missing out on is a chance to appear in the Multiple Listing Service, some solid advice on pricing, a chance to reach niche markets and out-of-the area buyers, great negotiating skills, and informed recommendations for specialists in every phase of the sale. This includes licensed repair gurus, and advice or professional help in staging great open houses. FSBO’s rarely generate as much buyer interest as homes marketed by professional agents. And those that do sell bring in a lot less money at closing time.
The National Association of Realtors found that FSBO’s net out at an average of $40,100 less than homes marketed by realtors. Whenever FSBOs show up at our offices, these are the services we enthusiastically put to work for them, but we never mention how wasted time has cost in mortgage payments, maintenance and utilitie, or how rising interest rates may have affected their pool of potential buyers.
by Annie Holmes
