You have probably heard of buyer’s remorse. On the flip side, without the market expertise and sales skills of a Realtor, sellers who choose to sell their home on their own just may suffer from “seller’s regret”. A recent study by NAR (National Association of Realtors®) reveals how much less a seller may net when selling their home as a FSBO (For Sale by Owner). FSBOs may receive an average of $60,000 to $90,000 less on the sale of their own property compared to sellers who work with a Realtor.. Here’s how it plays out:
- All Realtor-assisted homes: $250,000 (median selling price)
- All FSBO homes: $190,000
- FSBO homes when buyer knew seller: $160,300
With this kind of disparity, why would any seller choose not to have a professional assist them? The biggest reason is the perception that they can save the agent's commission. But even if you account for that, the report shows that FSBOs will still make less selling their own home. “Discuss the real estate commission with a Realtor and then have them calculate your estimated net proceeds based on the average selling price for similar homes.” The NAR researchers reveal in their NAR’s Economists’ Outlook blog that “The closing price for the Realtor-assisted seller is likely going to be way above a FSBO and homes sold by the owner make less money overall.”
Homeowners appear to have heard the message as only 8 percent of sellers last year—a record low—chose to sell their home themselves, according to NAR’s 2017 Profile of Home Buyers and Sellers. That number has been declining since 2004, when 14 percent of homeowners sold their homes without a Realtor.
Of the sales last year by a FSBO, 38 percent of the homes were sold to a buyer that the seller knew, such as a friend, neighbor, or family member. The majority of FSBO transactions, however, were sold to buyers the owner did not know. If you are considering selling your property, I invite you to consult with me, with no obligation, and I can help you value your property and calculate your net proceeds.