By Jeremy Kritt, Licensed Real Estate Agent and Realtor in Texas
The decision to go For Sale By Owner (FSBO) is usually about the money. Whether the home owner thinks they are going to save money on commissions or somehow be able to negotiate a better deal, it often comes down to the belief that more money will be put into the seller pocket if they go it alone. Inside the mind of many FSBO sellers is a voice that frequently sounds something like this, "I am going to cut out that middleman realtor that doesn't do anything anyway and save myself 6%." I can see how that thinking makes sense. On first glance it appears true, but there is one thing that snaps me back to reality. The data actually paints a very different picture.
A recent study by Collateral Analytics published on August 16, 2017 titled Saving Real Estate Commissions at Any Price by Dr. Michael Sklarz and Dr. Norman Miller studied price differentials for homes sold through traditional agents compared to FSBOs. The major finding might surprise a FSBO seller:
Keep in mind that the overwhelming majority of FSBOs are not successful. But why are Realtors the way to go? One of reasons for this is that Realtors are able to put a home on the real market by entering the sellers property into the MLS. As all real estate professionals know, if it is not on the MLS, it really is not on the market. Of course, the MLS is only part of the story. Putting a home on the market with a Realtor means hiring a professional marketer and negotiator who has received special training to represent sellers and get more money for their homes than they would any other way. There is more to come on this topic on my blog.
So what is the dirtiest secret about FSBOs and losing money? The data points to the FSBO strategy as a losing approach that makes most home owners walk away with less money.
I specialize in helping FSBOs in Austin, Round Rock, Georgetown, and Cedar Park get more money in their pocket than they would any other way. I want to help these sellers get their full worth out of their properties. Have you been trying to go it alone and getting frustrated? Are you starting to realize that you might net more money by going with a trained professional working for you to get more money in your pocket?
Give me a call at 512 808 3033.