For Sale By Owner – Price Trends
Much research has been done on for sale by owners, or FSBO, sales. On average, FSBOs sell for less than comparable regular sales, especially when markets are in equilibrium, when the number of available homes for sale are equal to the number of potential buyers. Historically, less than 30% of all FSBO attempts were successful. Nationwide when comparing selling prices for FSBOs versus MLS sales the average difference was about 5.5% lower in 2016 for FSBO sales as compared to MLS sales. So far 2017 suggests even larger differentials.
The proS – FSBO
Sellers think they are saving a real estate commission when they offer their homes for sale by owner. When you do find a buyer who wants to purchase your home be prepared that for them to offer less because they know a professional fee is not being paid.
If you are prepared to deal with buyers who may not be qualified to get approved for a mortgage loan, or who will offer to purchase your home at a lower price, you may want to consider being a FSBO seller.
If you are not in any hurry to sell you can be more stubborn on your price, which will make it more likely you will get a higher price if you do sell.
The cons – FSBO
Getting the Word Out to Buyers is more problematic. Although you can market your home on FSBO websites, less potential buyers are looking to purchase for sale by owner homes. Buyers in general prefer working with a professional real estate agent who can guide them through qualifying to purchase a home, negotiating an offer, writing a contract and making sure they can go to closing on their dream home.
Buyers who do want to purchase your FSBO lend to “low-ball” the offer price because there are no professional fees that need to be paid. Potential buyers tend to offer way below asking price. They justify this with the logic that the seller will net the same as if he or she were dealing with a regular sale, less a commission.
If you are desiring a faster and higher probability of your home selling, list with a real estate agent who will use the MLS as the most dominant platform, knowing there are a host of buyer agents incentivized to get a buyer to purchase your home.
FSBO Pros & Cons – For Sale by owner
When you are ready to hire an expert, contact Gene Mock, Associate Broker, Premier Team 703-342-8100