FSBO or Realtor? Can you save money selling your home yourself??
Posted Oct 30, 2007 @ 10:45 am, Viewed by 1098 Visitors, Read 1187 Times.FSBO or Realtor
For Sale By Owner can you successfully sell your home on your own??
Every year many Morris & Union County homeowners take on the challenge of selling their home without the help of a Professional Realtor, in Realtor speak they are FSBO’s. Is the challenge even worth taking on though?According to NAR Statistics in 2006 while we were still in the hot sellers market 12% of home sellers decided to attempt to FSBO (For Sale By Owner) their home, that number was down for 20% in 1987. Why are the numbers falling off? There are many reasons but the most important reason is that a good Realtor really can get you more money.
Here is what the FSBO home sellers said themselves:
- Of the FSBO’s that actually sold the average price they got for their home was $187,200 vs. $247,000 for the Professional Realtor Assisted home seller (NAR national statistics)
- Of the FSBO’s that actually sold 40% reported they knew the person who purchased their home before the seller decided to sell their home.
- Many FSBO home sellers say that preparing their home to show in its best light was confusing.
- Many FSBO home sellers reported that selling within their desired time frame was a major challenge, which they did not achieve.
FSBO attempts become fewer as the price of homes in a given town are higher. So for example there are far fewer FSBO’s in Summit NJ than in Morristown NJ. A large part of that is attributable to the education level as well as the types of jobs people have in a given area. The more professionals there are in an area the fewer who are willing to spend their time trying to save money, but rather they feel that their time is better spent earning more money.
Here is what FSBO’s reported as their main reasons for trying to sell on their own: NAR Statistics again
- 51% of FSBO’s did it to try to save the commission
- Control of the transaction, 10% want total control over the transaction, they may have had a bad experience in the past…
- Already have a buyer, or they think they do anyway. In 2006 22% of FSBO’s that successfully sold, sold their real estate to a friend.
- FSBO home sellers have an unrealistic expectation of how people behave, potential buyers make promises that they do not keep 9 out of 10 times.
So is it worth it to try to do a For Sale By Owner in a place like Summit New Jersey or Morristown New Jersey for that matter? The numbers say it is a total waist of time. One of the more conservative NAR statistics on what FSBO seller get for price is about 16% less at the closing table than home sellers represented by Professional Realtors.
The Reality is that in Union, and Morris Counties about 95% of FSBO home sellers list with a Realtor before their home actually sells. That means that 5% ether sell or give up. That is not an encouraging statistic at all. Statistics are not available for Summit New Jersey, or Morristown New Jersey but they are not very good when it comes to For Sale By Owner’s.
James Boyer
Realtor Associate
Keller Williams Real Estate
Summit, NJ 07901
973-647-0253 (Direct)
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James Boyer, is a resident of Morris Township in Morris County New Jersey and Specializes in listing and selling homes in Morristown, Morris Township, Madison, Florham Park, Chatham, Summit, Short Hills, Millburn, Maplewood, & South Orange New Jersey and Morris Essex & Union County Real Estate. Read More
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