Some sellers try to save on commission by listing their home "for sale by owner." Instead of the listing being entered in the MLS, which requires an agent and feeds to more than 900 internet sites such as Realtor.com, for-sale-by-owners (FSBO) market their home using yard signs, alternative websites, and word of mouth through friends, relatives, and neighbors. 31% of FSBOs don't actively market their home at all. Because 90% of homebuyers search the internet for potential homes, and 87% use a real estate agent to gain information, FSBOs are at a severe disadvantage.
The result? The average FSBO home sold for $174,900 in 2012, while the average agent-assisted home sold for $215,000. The for-sale-by-owner thus would likely have gained more money using an agent, even after commission. Perhaps this is why FSBOs accounted for only 9% of home sales in 2012. After all, why would a buyer be willing to take the time and effort to buy a house directly from a seller when the buyer could get much more help from a licensee?
FSBOs usually don't sell their homes for many reasons. It's difficult for FSBOs to show the property. Homes with nicer interiors than exteriors will miss out on home buyers who drive by the home and are not told of the home's great interior features. If someone does come to the door and ask to see the home, the owner takes a great security risk. Agents accompany buyers in all home showings. Moreover, any time the seller is not home, the house is off the market and cannot be showed. When you work with an agent, the property is constantly on the market, because the buyer will have a licensee to provide requested information at any time.
FSBOs face financing issues. Buyers may want help in deciding where to go for a home mortgage and may not understand the process. Oral negotiation is also a problem. A licensee will put an offer in writing and ask for a good faith deposit so that the seller only needs to sign an offer if the offered price is acceptable. FSBOs, and even general attorneys, often cannot properly and promptly fill out a contract form. Agents are expert negotiators, and written contracts ensure the buyer doesn't back out or try to buy the house for a lower-than-agreed-upon price. An agent's educational training allows him or her to draft a valid contract that will not end up in court.
Real estate agents ensure that enough time is devoted to a seller's home. Agents can help sellers fix up their home for sale, attract potential buyers, understand and preform paperwork, help buyers obtain financing, and, most importantly, get the right price within the planned length of time. Looking for an agent? Contact me to see how I can help. I've lived in Central Ohio all my life so I know today's market very well, and as a full-time agent, I'm 100% dedicated to my clients. Visit my website here.
