Have you decided to sell your home without a broker? Did you think to yourself, ‘who better to sell a home than the person who knows it the most, and I can advertise and host an open house, so why pay a broker to handle the sale?’ Well, I may be able to divulge a few facts and statistics which should change your mind.
According to the National Association of Realtors, of all properties sold in 2012, For Sale By Owner properties accounted for only 9%; therefore, 91% of all residential real estate transactions involved a broker. In addition, 84% of buyers searching for property, did so with the assistance of a broker. Do you want to rely on obtaining the best price possible by limiting your buyer pool to 16% of the buyers on the market? Furthermore, in regards to properties sold in 2012, the typical FSBO home sold for 23% less than the agent-assisted home. When considering an agent’s commission of 5 or 6%, the 23% added value of selling with an agent would more than cover their fees.
If the cost saving aspect is deducted from the equation, what are the perks to selling your most valuable asset yourself? Perhaps, the owner wishes to dedicate every weekend to conducting open houses rather than enjoying their life and allowing themselves to be responsible for all of the paperwork and disclosures which are required in a real estate transaction. Furthermore, the owner accepts the liability if these items are conducted improperly and becomes at risk for a lawsuit.
Still not convinced? A founder of the popular FSBO website, ForSaleByOwner.com recently sold his 2 bedroom apartment in Chelsea for $2.15 million with the help of a real estate broker who received a 6% commission. After trying to sell his home by himself for 6 months, he finally decided to hire a broker, who informed him he had underpriced his home and wasn’t attracting the right buyers. The property went into contract after receiving multiple offers and sold for $150,000 more than original asking price.
A home is typically a person’s most valuable asset, and why shouldn’t you trust your most valuable asset to a professional? Would you try to perform your own surgery, because you took an anatomy course in college?