Friday, April 28, 2006

Real Estate FSBOs ( For Sale By Owners) May Be Losing Millions.

For Sale By Owners, are home owners who sell their own houses without professinal help. It seems that in the desire to save the 5% or 5% fee that real estate brokers charge for their services, The For Sale By Owners earn 16% less than owners of comparable houses who put the transaction into the hands of an experience agent according to a survey conducted by National Association of Realtors.

A poll of 7,813 recent buyers and sellers located through county deed records found that the median price achieved by sellers with agents was $ 230,000 compared with $ 198,200 for those without agents. That's a difference of nearly $ 32,000 or 15%, with no significant diffferences between the types of homes sold.

A research by two intructors at the University of Texas at San Antonio found that sellers realize little gain when they turn to limited service agents to perform some but not all the tasks needed to close a sale.

The study revealed that limited service listings sold for 1.7% less than full service ones and took 17.1% longer to sell. It seems that a limited service brokerage offers "no dollar advantage".

FSBOs who participated in the Realtor survey also said they had more difficulty in undertanding and completing the necessary paperwork, preparing their homes for the marked and setting the proper price that they did in attracting buyers.

FSBOs don't price their property correctly, they don't have the resources to determine a fair and solid asking price.

No comments: