Davidson Realty, Inc.

4 Reasons Why More Home Sellers Are Saying No To FSBO

June 15, 2016

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Posted by in News

In the age of DIY, we have become accustomed to efficiently managing nearly every aspect of our lives on our own. But more and more Americans are finding that selling their own home is not one of them. In fact, FSBO (For Sale By Owner) homes accounted for just 8% of home sales in 2015, down from 10 years ago when 13% of homes were FSBO (source: National Association of Realtors).

“Sellers are realizing the drawbacks outweigh the advantages when they list a FSBO,” said Davidson Realty President Sherry Davidson. “In general, we are seeing FSBO homes stay on the market longer and end up selling for less than homes sold with the assistance of an agent who knows the market, appropriate pricing and property marketing techniques.”

Here are a few reasons why people are saying no to selling a FSBO.

1. FSBO homes typically sell for less and take longer to sell. The proof is in the numbers. In 2014, the typical FSBO home sold for $210,000 while the typical agent-assisted home sold for $249,000. This debunks the long-held misconception that sellers will save on real estate commissions by selling their own property. Further, FSBO sellers took about 19 days longer to get to the closing table.

2. Sellers must handle negotiations with numerous parties. Between the buyer, the buyer’s agent, the buyer’s attorney, home inspection companies and appraiser, the time consuming task of strategically negotiating with multiple parties can be overwhelming. Agents are attuned to managing these negotiations on their clients’ behalf.

3. Sellers are limited in exposure to buyers. Beyond the MLS listing and yard sign, agents have the know-how to find more buyers through their networks, resources and marketing strategies. This saves the seller on time taken to find buyers as well as helps them tap into a larger market of buyers, which helps the sale price.

4. Sellers are in for mountains of required paperwork. Thanks to more and more industry regulations, the paperwork required to sell or buy a home has increased exponentially. When a FSBO seller is left to manage these important documents and contracts with no experience, there is a lot of room for mistakes.

Sellers can easily spend countless hours trying to prepare their home, market their listing, find trusted industry professionals, negotiate, sort through confusing paperwork, negotiate some more, and they still sell for thousands less while sitting on the market longer. In the end, American homeowners are finding that using a trusted real estate professional is the way to go.

For more information about finding the right agent for you, contact Davidson Realty at (904) 940-5000.

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