Initially you may think that this is a huge savings for you as a seller, but think again. If you look at the numbers, a different story unfolds: according to the National Association of Realtors, the typical FSBO home sold for $145,000, as compared with average sale price of $175,000 for sellers who had agent representation! The extra $30,000 more than covered the commission AND netted more proceeds to the seller. Here’s a REALscenario that took place just last week on our team here at the Mannila Besaw Group:
Our listing agent, Scott, met with a client that was trying to sell their house as FSBO. They had already planned on listing their house with the Mannila Besaw Real Estate Group but wanted to see if they’d be able sell their home FSBO first and save some money. They posted some craiglsist ads and delivered 500 flyers throughout the neighborhood advertising an open house. They received an offer for $419,000 which they had countered. Scott pointed out that he was pretty sure he could get a higher price, and he told the seller to rescind their counter immediately, and the seller acted quickly. Scott listed the house and within 48 hours had 4 offers, and the seller accepted an offer for $469,000! One of the HUGE benefits of working with a quality agent is their market knowledge, which in this case proved to be very valuable.
In addition to the extra $50,000 that the seller received, think about the legal consequences that could occur if even one disclosure is not filled out properly. When using an agent, you get the peace of mind knowing that a professional has completed the contract and all forms correctly for the protection of the seller. Another thing sellers often don’t think about is the fact that many buyers are not comfortable giving feedback about the home directly to the sellers, as sellers are not objective about their home and may be defensive about any criticism. Many buyers will just GO AWAY and look for another home rather than negotiate directly with a seller. Please let us know if this information is helpful to you, at the Mannila Besaw team we LOVE real estate!