Only 8% of recent home sales were FSBO sales which indicates for sale by owner sales at all-time low for the 2nd straight year.
Most for sale by owners want to try and see if they can save the commission, and who could blame them. Everyone wants to save money. What matters most is how much is in your pocket at closing.
The average FSBO gives up after 2-3 weeks when they get no showings or so many showings and no offers that they get tired of the process. They don’t know who they are letting in their home and what their motivation is. If it’s risky for real estate agents’ security, just imagine how risky it is for a sale by owner.
We know that 92% of all sales go through an agent. Most sellers don’t realize that only 4% of buyers viewing their home are qualified to buy it. Some don’t have the income. Others don’t have the credit necessary to purchase. A large percentage has locked equity, meaning they must sell something before they can purchase. This requires an agent to solve that problem. It is very frightening to sell and buy simultaneously and to coordinate financing on both properties and all the closing details when you don’t know what you’re doing.
Buyers and sellers have fears and all these must be met. A for sale by owner can’t do it. Buyers don’t trust sellers because they have fears, just like the seller does. Somebody with knowledge and people skills must manage all this.
Quite often we get sellers who contact us telling us they’ll pay us a certain percent to sell their home. They mistakenly believe they’ll save part of the commission doing this, essentially becoming their own listing agent.
First off, they won’t have an agent representing them. Secondly, they won’t have an agent marketing their home. We go out and create buyers for each of our listings. We target buyers online by the inventory we have. When we don’t have the sale by owner in inventory, we aren’t out creating buyers for that home.
Real estate today isn’t like the old days where you put up a sign, placed it in MLS, maybe took out a generic ad in paper, and hoped someone else would sell it.
We Target the Buyers
Reaching buyers today is more sophisticated. We buy the data and target the buyers. We have the ability to search for buyers based upon their income, age group, lifestyle, whether they’re likely to make a move, etc.
Let’s say we list a property in a 55+ community. It would do no good to target 30 year olds when they can’t live there. We can target 55+ yr old buyers. Or perhaps we list a property with tennis courts. We can target buyers who are interested in playing tennis. We can target buyers who set out of their homes to find the best used tennis racquets. The same is true for waterfront homes, golf course homes, gated communities, etc.
We go out and find buyers based upon our seller’s needs. If a for sale by owner thinks they’re going to save part of the commission by offering all agents a fee to sell their home, they’ll be missing on the prime benefit of listing with an agent.
For Sale By Owner Sales at All-Time Low
Two separate studies show for sale by owners receive 16% less than properties sold with an agent. By giving away 16% are they really saving anything? No, it’s costing them not to use an agent.
If you doubt us, go ahead and try it for a few weeks. Then call us at 239-489-4042. Or just call us upfront. If we put a lot more money in your pocket at closing because we attract more buyers, we don’t cost you anything. Imagine selling in an online auction. Do you think you’ll receive more if you have 1,000 qualified buyers versus only 1? Let us open the door to finding good qualified buyers for you.
The Ellis Team now marketing Useppa Island Homes