For Sale by Owner is becoming a more popular way to sell a house now that the real estate market seems to have hit bottom.  Is it the best way to make the most money on the sale of a house?  Maybe, or maybe not.  If an average commission is 6%, the home owner can save the 6% off the price of the for sale by owner listing.

According to National Association of Realtors (NAR) statistics, For Sale by Owner, or FSBO, sales accounted for 9% of home sales in 2012.  The average FSBO sale price was $174,900 compared to homes sold by professional Realtors that averaged $215,000.  Maybe this $40,100 price differential was due to location, however it is not really likely.  This means that the FSBO who sold for $174,900 did save the 6% commission, or saved $10,494.  If one follows the average transaction price of a professional Realtor, that same FSBO might have sold the house for $215,000.  Deduct the 6% commission of $12,900, the FSBO may have netted an additional $38,594 had he used a Realtor.

These are national statistics from the National Association of Realtors, not mine.

OK, so let's not even consider the difference in net.  Try this.  According to the NAR, there are other issues to consider, including:

Most Difficult Tasks for FSBO Sellers:

  • Understanding and performing paperwork  . . . . . . . . .  18%
  • Getting the right price . . . . . . . . . . . . . . . . . . . . . . . . . . .  14%
  • Preparing/fixing up home for sale: . . . . . . . . . . . . . . . . .  11%
  • Helping buyer obtain financing: . . . . . . . . . . . . . . . . . . . .  6%
  • Attracting potential buyers . . . . . . . . . . . . . . . . . . . . . . . .  6%
  • Selling within the planned length of time: . . . . . . . . . . . .  6%
  • Having enough time to devote to all aspects of the sale . 1%

‚Äč‚ÄčOther things a Realtor will ensure include:  pricing the home appropriately for the market; having a qualified buyer come to the house; and the presentation of a valid and qualified offer. A licensed Realtor will accompany the buyer, and has access to a secure lockbox on a properly listed home.  This is something that many FSBOs overlook, that the person coming into the house is both qualified and a legitimate buyer.

 

It really is easy to get a contract. Realtors earn their commissions in the stages after the contract: making sure all the deadlines in a contract are met, ensuring that the financing is on track, keeping the seller and the buyer updated on the progress of the transactions, making sure all the appropriate inspections are completed within the contract requirements, and much more. 

 

In most cases, even though there is a commission to pay, taking advantage of the knowledge and expertise of a professional Realtor will mean more money in the pocket of the homeowner when the sale is completed.

 

Find out what your Florida home is worth, then call a professional Realtor to get it sold.