As a Colorado Springs Real Estate Broker, I speak with hundreds of FSBO's, and like Led Zepplin once said "The song remains the same". On just about every occasion the FSBO's identify the main reason why they are selling their own home-to save the commission. Although the reason is not original, I respect it as their decision, their home and their finances!
The facts indicate that Real Estate commission, while seeming expensive, DOES produce a return on investment. Consider the facts:
- It is a statistical fact that the competent agent negotiates a higher sale price than the owner does. The buyer responds differently to the agent than they typically do with the seller.
- Buyer of a "FSBO" expects to pay less than the fair market value.
- Statistics tell us that only about 3%-4% of home buyers actually buy the home that they called on.
- 90% of all home buyers use a Real Estate professional
- The typical FSBO home sold for $187,200 compared to $247,000 for agent-assisted home sales.
- FSBOs accounted for 13% of home sales in 2008
- FSBO transactions have a much higher chance of legal disputes
So the "Elephant in the corner" is that the DIY home seller is actually saving the commission. They are not! Facts indicate that they are actually losing money, decreasing the chances of selling, increasing the time it takes to sell and increasing the chances of legal disputes.
Opinion article Written By William Szilagyi Williams HomeSellers www.ZColorado.com 719-646-2634 Statistical data resources: Realtor.org
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I agree that most FSBO sellers don't know everything they need to know about buying and selling a house. I think that a good combination would be to read-up on best seller FSBO books for a seller and accept a sale from a real estate agent offering around 3% commission. That way at least the seller can save between 1-3% I personally probably would go with an agent if I was to sell a house. You can find FSBO and none FSBO listings on ByOwnerForLess.com
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