Raleigh Area Real Estate

For Sale By Owner

Have you ever wondered why only 16% of all homes put on the market each year are listed as "For Sale By Owner" (FSBO)? Wouldn't you think more people would try to sell their own homes so that they could save money on brokerage fees?

While selling yourself may sound appealing, only 3 out of every 10 FSBO sellers said they would sell by themselves again. The average sale price of an FSBO is less than agent-sold homes.

What is the major perceived benefit of selling your home FSBO?
The major perceived benefit of selling your home yourself is that you will save the brokerage fees that you would pay if you chose to work with a professional Realtor^®. Many homeowners who choose FSBO are hoping to make a little more money on their home sale by choosing not to use the services of a Realtor^®. In theory, this seems like a good idea: how could you argue with the idea of saving a few thousand dollars on commissions? How difficult can it be to sell a home, especially in some of today's booming markets?

You might be surprised to learn that many FSBO sellers actually make less money on their home sale than if they had worked with an experienced professional Realtor^®. Most FSBO sellers quickly discover that the demands on their time, their lack of experience, and their inability to negotiate the fast-paced landscape of home sales leaves them with more stress and less money in their pockets than if they had just paid the brokerage fees.

Time and time again, we hear the stories of many FSBOs wishing they would have secured the services of trained professionals from the start.

What can a Realtor^® offer that an FSBO cannot?

When a single Realtor^® lists your property with the Multiple Listing Service (MLS), thousands of realtors see the listing. An FSBO can do little more than list his property with a sign in the front yard or in the local classifieds, so the number of prospective buyers is significantly lower than those in contact with a Realtor^®.

In addition, over 75% of home buyers use the services of realtors when buying a home, so FSBOs are left with the other 25% who are often less desirable home buyers (e.g., those who are not qualified to obtain a mortgage, bargain hunters, or just lookers who end up wasting the homeowners time). FSBOs quickly discover that these types of home buyers can make their home-selling experience a real nightmare.

What does the Realtor^® do to earn his/her commission?
Many FSBOs simply do not understand what a real estate professional does to earn his commission. Make sure that you know what your Realtor^® is supposed to be doing for you as the home seller. Common tasks a Realtor^® will perform include:

Assisting the home seller in setting the best price for the home
Filling out all the paperwork and delivering it appropriately and on time
Attracting qualified buyers to view and bid on the home
Marketing the home to prospective buyers using experience and skills as a professional salesperson
Helping the seller navigate and understand all the financial aspects of the transaction
Doing everything possible to make sure that the seller comes away with the highest sales price and the least amount of stress and worry

These are just a few of the many benefits of working with a Realtor^®. A Realtor^® earns commission through hard work and dedication to your home sale. FSBO can and does work, but with a decision as important as selling your home, it may not be worth taking the chance that FSBO won't work for you. A home sale is a major financial and legal transaction: why risk your peace of mind, your bank account, and your future?