You are considering putting your home on the market, but what is the smarter way to do it, hire a real estate broker or list it yourself?
I recently received request from a home seller to meet, so I could convince her that using a real estate broker is a better path than listing the property herself For Sale By Owner (FSBO). Her mindset is that she would be able to save the average 6% commission fee a real estate broker would receive upon the sale of her home based the brokers marketing, listing, and brokering the deal for her home.
This is a fare questions and one I am always ready, willing, as well as, happy to answer.
The bottom line: Shortest time on exposed for sale + largest pool of buyer = Highest Price
We sat down to review how this would be done. We compared our resources and marketing plans for meeting the above goal. There simply was no comparison between the two. As a full service, real estate broker my resources are robust. Not only do I have access to the MLS, my listings are cross posted to syndicate sites, networks, promoted on social media channels, and the network within my ﬁrm. My relationship with the real estate industry provides huge exposure for my clients and provides access to qualified buys. This in combination with a proven marketing strategy, reputation, and experience there is no contest when determining whether you should hire a broker or try to list it yourself.
FSBO sellers are on their own when trying to verify if a buyer has the funds to purchase the property, scheduling showings, and they will still have to deal with a buyer’s agent most of the time. They will have to handle the inspection, deal with the appraisal, and the closing attorney.
Below are stats and links to articles that go more in depth. If you are interested in this question and have had success with either side would love to hear about your experiences.
Here are the statistics from the National Association of Realtors about homes For Sale By Owner (FSBO):
- FSBOs accounted for 8% of home sales in 2015. The typical FSBO home sold for $185,000 compared to $240,000 for agent-assisted home sales.
- FSBO methods used to market home:
- Yard sign: 33%
- Friends, relatives, or neighbors: 21%
- Online classiﬁed advertisements: 10%
- Open house: 21%
- For-sale-by-owner websites: 7%
- Social networking websites (e.g. Facebook, Twitter, etc.): 9% Multiple Listing Service (MLS) website: 13%
- Print newspaper advertisement: 3%
- Direct mail (ﬂyers, postcards, etc.): 2%
- Video: 1%
- None: Did not actively market home: 41%
The following are the most dfiﬁcult tasks for FSBO sellers encounter:
- Getting the right price: 18%
- Preparing/ﬁxing up home for sale: 13%
- Understanding and performing paperwork: 12%
- Selling within the planned length of time: 3%
- Having enough time to devote to all aspects of the sale: 3%
By using a real estate broker you are working with an expert to get top dollar for your home that will navigate you through the process and work for you. Looking at the big picture, you are saving time and money by working with broker.