FSBO vs Realtor Listing
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Early spring is historically a popular time to buy and sell real estate. Add to this U.S. mortgage rates falling to a 10-month low this past week, and if selling in 2019 is in your plans, now is the best time to actively plan and prepare to sell your home.
For Sale by Owner listings, also known as FSBO’s, are an option to traditional listing with licensed real estate firms. But some of the hard facts about listing your own property versus listing with a licensed realtor may give pause to reconsider.
Commissions. Some home owners only look at this one item. However, the truth of the matter is the average selling price of properties listed with realtors is a whopping 15% more than the average selling price of a For Sale by Owner. It isn’t hard to compute you will gross more money by listing with a professional, even when considering paying a commission.
Finding a buyer. A realtor has many contacts, leads, and multiple sources of advertising listings. A FSBO will have to generate interest in the property by a sign in the yard and maybe newspaper or online listings. Statistically only 10% of buyers find the house they buy, by seeing a sign in the yard.
Showings. It is hard enough to have your home in tip-top shape and ready for buyers to view. If you now must be available to show the home to prospective buyers, the time commitment is extreme. In addition to the time commitment some buyers find it very uncomfortable to deal directly with a homeowner.
Mounds of paper work. Disclosures, inspections, legal filings. Completing and filing all required documents is intense and demands intimate knowledge of state and local real estate laws.
FSBO vs Realtor listing, the most important stage of a new listing is the initial few weeks it enters the market. Getting it exactly right the first time, is the precursor to a successful sale. Hiring a professional makes the most sense, but we may be a bit biased.