According to the National Association of Realtors, FSBOs (For Sale By Owners) in their attempt to save the 6% fee that realtors charge for their services, earn approximately 16% less on the sale of their homes than owners of comparable homes that put the transactions in the hands of an experienced agent.
If you consider that prospective buyers automatically deduct 6% off their offers to FSBOs because they figure there is at least that much room in the price, where does the remaining 10% go?
One blatantly obvious difference is the inability for the FSBO to market their property as efficiently and effectively as a real estate professional.
Interestingly, brokers control all the sites used most frequently by buyers. FSBOs in a survey also said they had more difficulty in understanding and completing the necessary paperwork, preparing their homes for the market and setting the suitable price than they did in attracting buyers.
It’s hard to see how handling the paperwork affects the eventual selling price, but staging the house so buyers see it in its best light and determining the correct asking price can have a profound effect.
Although there are websites with tools to help owners establish their homes worth, most agents have the best tool – The Multiple Listing Service, which reports both list and sale prices – at their disposal.
Finally, One of the best reasons for hiring a Realtor to sell your property is their ability to pre-qualify a prospective buyer financially so that you don’t lose valuable negotiation time. Your agent may discover when a prospect has an ulterior motive for shopping homes, other than purchasing.
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