Only about 10% of FSBO’s sell (90% don’t!)
August 3, 2008
If you’re attempting to sell your home without a Realtor be advised that the cards are not stacked in your favor. Even in a normal or healthy real estate market selling without a Realtor is only successful about 10% of the time. This means that 90% of your fellow FSBO’s never attract a buyer. Eventually, they almost all list with a Realtor.
When you couple the above statistics with the fact that we’re in a declining and almost paralyzed market you have literally close to no chance of ever selling on your own. The only homes that are getting any showing activity are the ones listed with a Realtor and priced attractively. What is an attractive price? In a market completely saturated with shortsales and foreclosures there is only one way to compete….price. You’ve got to price competitively or you’ve got no chance at all. Typically, in today’s market, only those listings priced in the lower 25% of comparable properties are getting shown and getting sold. Everyone else is left frustrated and empty handed.
So what matters most to you? Is your goal to actually sell your home? If so you need your property exposed to the greatest number of potential buyers as possible, and the only way to do this is have your home listed in the Multiple Listing Service. There simply is no way around this reality. And it takes a Realtor to enter a home into MLS. For Sale By Owner’s are only attracting drive-by traffic. The thousands of Realtors with access to MLS don’t even know you exist, and if they do, they will avoid you for a variety of reasons.
Why would a Realtor ever consider showing your FSBO property when there are dozens or possibly hundreds of comparable LISTED homes to show their buyer? Knowing there is a listing means the Realtor can relax and not worry about having to negotiate for their commission with an unreasonable home seller. In MLS all listings clearly show the commission that will be paid at closing and it is guaranteed by a signed legal document called a “listing agreement.” With FSBO’s a buyer’s agent risks a seller changing their mind and refusing to pay the verbally agreed upon commission. In this buyers’ market Realtors avoid FSBO’s like the plague.