An FSBO, or For Sale by Owner, is a home that is being sold by the owner without the use of a real estate agent. When thinking of selling a home, you might think about skipping the services of a Realtor and saving the cost of that service. When deciding FSBO vs using a Realtor when selling your home in the Boulder Area. The most common reason is that the seller believes they are saving the costs of hiring a real estate agent and the commission. Some sellers don’t want to hire a professional Realtor.
Because the Realtor receives a chunk of the profits from the sale of the home. Most homeowners believe that they can keep this money and sell their home on their own without the aid of a Realtor. Unfortunately, they don’t know all the intricacies that go into selling a home. All the hard work and effort it takes. I’d like to show you why this way of thinking isn’t true and why homeowners usually end up with added stress, wasted time, and less money.
FSBO vs Using a Realtor When Selling Your Home
The National Association of Realtors has done the research and found that homes sold by people utilizing the services of a listing agent sold their homes for an average of 23% more. Then if they had sold the home themselves. In this example, I’ve lowered the percentage to 16% to be conservative and put in the hypothetical agents’ compensation at 6% (this would cover both the Listing Agent’s and Buyer’s Agent’s brokerage firms). When looking at the chart below you will see that even with the agent’s compensation subtracted from the final listing amount the home still sells for more than if the owner had tried to do it themselves.
The hypothetical seller actually has a 9% net gain on the price. It’s important that you do not underestimate the expertise, knowledge, resources, and experience a qualified real estate agent brings to the table. If you are considering an FSBO because you believe it will save you money, I strongly suggest you reconsider. You would be doing yourself a disservice and losing out on time, money, and peace of mind.
What a Realtor Can Offer You
If you’re still thinking that selling your home yourself can’t be that difficult, I’d like to offer you some insight. Here is a list of things that a real estate agent would be doing for you. That you would have to do yourself instead. And not only would you be taking on all these responsibilities. But you’d also be doing it with fewer resources and less experience. A local real estate expert such as myself knows your market well and will price your home properly so it can sell for top dollar in a desirable time frame. They are also experts in marketing your home with high definition photos that will post on social media, the internet, email newsletters, Colorado Homes or 5280 magazines, and more.
A Realtor that is also a Certified Negotiator will represent your best interests and will guide you throughout the transaction. They will make sure that potential buyers are qualified as well so as not to waste your time. A real estate agent would be in charge of organizing all aspects of the sale. So that you can sit back and relax. Additionally, they are someone who is familiar with contracts and all the legal issues that come along with selling a home. I guarantee that this is something you want to be handled by someone with experience. Real estate agents go through a ton of training. Contracts should not be a DIY job! I hope you can see that if you take all of these responsibilities on yourself, you are likely to end up with a headache.
What Do Buyers Think of FSBO Vs Using a Realtor When Selling Your Home
I hope it’s becoming clear how incredibly useful and beneficial using a real estate agent can be. But don’t just think about the sell side, let’s explore how a buyer views an FSBO as well. First of all, a buyer will look at an FSBO as a home that can be purchased for under market value. Because it will not have as many buyers looking at it. The buyer will think there will be less competition and so, offer less than market value. Furthermore, the buyer will be considering a lower offer because they feel the seller is not as educated on the local real estate market. Or doesn’t have as much experience in negotiating as a Realtor would.
So on top of the difficulty sellers have attracted buyers without all the marketing tools and connections at an agent’s disposal. The seller will have to deal with low-ball offers as well as unqualified buyers wanting to look inside their home! But let’s say a legitimate buyer contacts you about your home. It is likely that they have a real estate agent who will want to be compensated for their work representing the buyer.
Unless you are willing to pay that real estate agent’s commission, this now entirely falls on the buyer. And the reality is that there is double the amount of work for the buyer’s real estate agent. Because they are dealing with a seller who is unrepresented by a listing agent. Who would normally be doing all the work for the seller. If you would like to avoid all these issues. An instead experience selling your home in a relaxing, stress-free way, contact me! I will guide you through the whole process!
How Can I Help?
If you are looking to sell your home and would like a Realtor to represent you, don’t hesitate to contact me. I hope this article has been helpful when deciding between FSBO vs Realtor when selling your home in the Boulder Area. Or if you want more information on why using me rather than going at it alone would be better for you, please get in touch! I will continue to provide my clients with interesting and up-to-date information so they can make informed decisions. If you are planning on buying or selling a home in the near future and you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me!
Or would you like more information on the Boulder area or the real estate market specifically? If so click here to download my current market report on the area or visit this link – http://elisabethnelsonrealestate.com/market-report-newsletter/
Luxury Home Specialist & New Home Specialist
Coldwell Banker Residential Brokerage
(303) 916 5859