If Only It Were As Simple As A Sign…
The real estate market is much more challenging now, than it was back then. The internet has become a HUGE part of the equation. The web has been instrumental in the progress of real estate, however, it has produced some hiccups as well. Data is free flowing across the internet, but how do we know what is really true and what to believe?
Sure there are plenty of sites that speak highly of For Sale By Owners (FSBO’s) and sites that give you step by step how to do it. Even our Realtor-based sites are allowing for FSBO’s to post their houses. There is just one problem: most buyers are still using an agent; agents tend to shy away from FSBO’s; and most FSBO’s do not want to deal with agents. So your property may still not be getting the visibility that it needs, or deserves.
Location, Location, Location was always the mantra of Realtors. Now, another mantra is being introduced; Marketing, Marketing, Marketing. With so many avenues of information, are prospective buyers even finding your home? Or is it overshadowed by Real Estate Agents’ advertisements?
During the COVID fueled fervor it was often as simple as a sign, but that is no longer the case. While supply and demand on LBI will always be lopsided in favor of the seller I am not sure when we will ever see the disproportion we saw from mid 2020 through mid 2022. It was straight up insanity.
For Sale By Owner Statistics
- FSBOs accounted for 10% of home sales in 2021 (A jump from 2017 when this number was 7% which was down from 9% in 2014). Again at the height of COVID it really did only take a sign; or people knocking on your door asking if you wanted to sell. The typical FSBO home sold for $225,000 compared to $330,000 in an agent assisted sale; in 2017 the difference was $200,000 compared to $265,500. That is a 34% difference! Which is up 10% from 2017! FSBOs leave A LOT of money on the table!
- FSBO methods used to market home in 2017 vs 2022 vs How Buyers Found Their Home in 2022
The way FSBO’S were marketed for sale in 2017 vs 2022 differed widely. In 2017 almost half of sellers did not advertise at all?!?!?!? But I think the more shocking statistics are when we look at how FSBO’s advertised in 2022 and how buyers found their home; there is a huge disconnect! Only 5% of buyers bought from a FSBO even though there was overlap in other marketing avenues.
- Most difficult tasks for FSBO sellers:
- Getting the right price: 16%
- Understanding and performing paperwork: 13%
- Selling within the planned length of time: 10%
- Preparing/fixing up home for sale: 6%
- Having enough time to devote to all aspects of the sale: 1%
- Attracting potential buyers: 1%
- Helping buyers obtain financing: 1%
Source: 2022 National Association of REALTORS® Profile of Home Buyers and Sellers
Below are some articles you may find informative in your FSBO mission. I want you to investigate all possibilities of not using an agent, so when you decide the time is right to consult one, you can do so without regret: How To Sell Your Home Without An Agent, 10 Rules For Selling Your Home On Your Own, 7 Steps To Lead To For Sale By Owner Success, FSBO Websites.
I would not be doing my job as a Realtor if I did not also give you information on the not so good aspects of FSBO’s: Why For Sale By Owners Fail, For Sale By Owner vs Hiring a Realtor- True Story, 5 Reasons You Should Not For Sale By Owner, For Sale By Owner- The Truth About Selling Your Home
Try selling on you own, see how it goes, but after a few cancelled showings, frustrations with all the paperwork involved (closings protocols have changed as of Oct 3, 2015) and maybe even a lack of reasonable offers on the property; I would appreciate the opportunity to sit down and speak with you about listing your home.
Until then, let me know if you are willing to work with me as a “buyers agent”. You never know, I may have the perfect buyer for you and I can let them know that your property exists. Let me know here.