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The True Cost Of Selling Without A Real Estate Agent
Dated: July 26 2018
Selling Your Home Solo? Read this First.
You’ve heard of "Buyer’s Remorse?" Without a Realtor's market expertise and sales skills to back them up, Sellers who choose to sell their home on their own just may experience “seller’s regret” when they see how much less they get for their properties. For Sale by Owner's (FSBO) earn an average of $60,000 to $90,000 less on the sale of their home than Sellers who choose to work with a real estate agent, according to the National Association of REALTORS®. Here’s the breakdown: (Source Below)
All agent-assisted homes: $250,000 (median selling price)
All FSBO homes: $190,000
FSBO homes when buyer knew seller: $160,300
With this kind of discrepancy, why would any Home Owner or Investor choose to go it alone? Some want to avoid paying an agent's commission — but even factoring that in, FSBOs still stand to make less on their home sale. “Talk to an agent and find out what they suggest for the commission, and then do the math yourself,” researchers write on NAR’s Economists’ Outlook blog. “The closing price for the agent-assisted seller is likely going to be way above a FSBO. [But] in reality, homes sold by the owner make less money overall. And, remember all commissions are negotiable!”
Homeowners seem to be hearing the message: Only 8 percent of sellers last year — an all-time low — chose to sell their home themselves, according to National Association of Realtor’s 2017 Profile of Home Buyers and Sellers. That figure has been falling since 2004, when an amazing 14 percent of homeowners sold their own homes.
Of the share of FSBOs last year, 38 percent of the homes were sold to a buyer that the seller knew, such as a friend, neighbor, or family member. These homes sold for the LEAST amount. The majority of FSBO marketing homes, however, were sold to buyers the owner did not know.
Source: “Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think,” National Association of REALTORS® Economists’ Outlook blog (July 9, 2018)
Blair Halford is a Charleston native, and having grown up here and attended Porter-Gaud and the College of Charleston he has appreciation for the Lowcountry lifestyle. His extensive knowledge of the a....
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