FSBO – An Epic Fail

For Sale by Owner, aka FSBO, is a matter of simple economics.  Private homeowners sometimes attempt to sell their homes themselves in an attempt to avoid paying the listing real estate commission.  FSBO’s represent approximately nine percent of home sales.  This is common in a hot sellers’ market when sellers feel they can sell without the assistance of a REALTOR®.  This makes as much sense as trying to perform your own open heart surgery.

According to the National Association of REALTORS®, the typical FSBO home from 2013-2014 sold for $184,000 compared to $230,000 for homes sold by REALTORS®.  This significant loss is easily understood considering 13% of FSBO’s report having difficulty “getting the price right.”  REALTORS® have full access to statistical market data on recent home sales and homes currently for sale.  In addition, REALTORS® are trained to use comparative market analysis (CMA’s) to determine an appropriate sales price for a home.

Counting the Listing Agreement, Sales Contract, addenda, and the closing documents, there are in excess of 100-150 pages of documents involved in the typical real estate transaction.  FSBO’s rarely are intimately familiar with each page of these documents and typically don’t have the experience to negotiate a contract with terms favorable to the seller.  In addition seventy percent of real estate lawsuits result from one party not having representation, which is typically the case in a FSBO.  The buyer is often represented by a REALTOR® and the seller is not.  FSBO’s are involved in more lawsuits than any other group in real estate.

Trying to sell your home FSBO is an Epic Fail.  The modest commission a REALTOR® earns, is minimal compared to the money you will save.

Call Gulf Shores Realty at 941-488-6644 for more information about how to sell your home or visit http://gulfshoresrealty.com/