Realtor.com has an ad on the radio saying DON’T D.I.Y. in your real estate transactions. It is a very catchy ad with a lot of substance. It makes a lot of sense and should be elaborated. We all know that internet has brought about a radical change in all aspects of our life. Real Estate has also been impacted by technology. There is so much information on the web that the real estate consumer is very knowledgeable which has lead to the belief that Realtors are not necessary for a real estate transaction.
Statistics prove otherwise.According to the National Association Of Realtors report 87% of buyers purchased their homes thru Real estate agents or brokers. Only 8% recent Home sales were FSBO (for sale by owner)sales.
Before doing a FSBO take these factors into account.
What Factors are Involved
Understanding the details of paper work is crucial to succeeding. 19% of FSBOs were faced with problems of putting together the terms of the sales and having an in-depth knowledge of the legal requirements involved in the sales of a home.
Over 14% of FSBO sold their homes based on emotions instead of the prevailing market price. It is a rare instance for the owner of the home to have access to reliable data with to compare prices in the area. The internet is a great source but the Realtor is in the day to day market and has more current knowledge of the market. Usually a homeowner tends to overprice their home and it stays longer on the market.Then they under sell it in desperation.
There are things that must be put in place to make a property worth its full potential. 15% of FSBO lacks this knowledge, hence they invest in the wrong areas.
Connection is key, it is important to get financing and connect buyers to sellers. Realtors can leverage on this because they have the connection but owners cannot. Realtors have a pool of ready buyers which may not be available to FSBOS.
The marketing skills required to make a sale can only be found with realtors. The internet is the best tool for FSBO, but the realtors has a variety of tools.
Selling through the FSBO route is risky because it takes longer to sell through that route. There are serious commitments that need to be made when selling a property like paying attention to every details. This can be a burden especially if you have not sold a property before.
Less than 3% of FSBOs were faced with smaller issues like negotiating, settling property inspectors and other miscellaneous issues needed to seal the deal. Although not every FSBOs have challenges with selling their homes, over 25% of FSBOs did not know the buyers report to have a smooth property sale.
Realtors and Technology go hand in hand and can be combined to get the maximum rewards in your real estate transaction.