In the real estate profession it can sometimes be amusing when friends or acquaintances will try to explain why they are trying to sell their real estate themselves – For Sale By Owner (FSBO). I guess they think we will be offended they chose to do it themselves instead of hire a professional, who could expertly lead them through the difficult process of selling real estate. But the part that is most humorous is they will typically ask you for some bit of advice about selling their property, which begs the question of why they just don’t hire you in the first place.
According the National Association of Realtors, 22% of property owners will attempt to sell their property themselves. Only 8% of them will be successful. Of the ones that are successful, the price they achieve is typically 16%, on average, less than those prices achieved when a real estate professional is selling the home. A lot of people who sell for themselves will think they are saving the commission that will be charged by the professional. I am pretty sure that most real estate professionals do not charge 16% commission. And remember 16% less is the average, that means some properties sold well below the value that could have been achieved by a professional.
And what about marketing the property? Most for sale by owners will place a sign on the property and might run an ad in the paper. Again, according to statistics when buyers are looking for property only 9% said they found it by signage, and only 1% found it through print advertising. In contrast when owners were asked their main method of advertising 42% said by placing a sign on the property. In today’s market over 44% of buyers said they found the property they were looking for online and an additional 33% said they used a real estate agent to assist them.
A real estate professional can be the difference between life or death for the sale of your property. They will evaluate your property compared to others in the area, they will be familiar with the sales trends for the market and will know how to value your property. They will also be experienced in assisting you through the contract negotiations, which can be daunting at the very least.
If you needed heart surgery, you surely wouldn’t watch a YouTube video and start operating on yourself, you would find the most trusted heart surgeon available. Do the same with your real estate, allow it to be handled by a professional!