Fewer Sellers Are Listing As A FSBO: 4 Reasons Why

Posted by: Cathy Eng in News, Tips

In this day and age it is easy to manage nearly every aspect of life on our own. However, home sellers are finding many more cons than pros emerge when they consider selling their own home. Back in 2005, 13% of sellers sold their home as a FBSO (For Sale By Owner). Fast forward 10 years and FSBO homes accounted for just 8% of home sales in 2015 (source: National Association of Realtors).

Sherry Davidson, President of Davidson Realty, helped shed light on why this is the case. “Sellers are realizing the drawbacks outweigh the advantages when they list a FSBO,” said Sherry. “In general, we are seeing FSBO homes stay on the market longer and end up selling for less than homes sold with the assistance of an agent who knows the market, appropriate pricing and property marketing techniques.”

Here are four reasons why more and more sellers are saying no to FSBO.

1. Statistically, FSBO homes take longer to sell and end up selling for less. In 2014, FSBO sellers took about 19 days longer to get to the closing table than sellers with agents. Also, the typical agent-assisted home sold for $249,000 while the standard FSBO home sold for just $210,000. A popular thought is that sellers will save on real estate commissions by selling their own property, but this is just not the reality.

2. Sellers are in for often heavy negotiations with various parties. Negotiations require strategy and time when considering the numerous participants like the buyer, the buyer’s agent, the buyer’s attorney, the appraiser and other service providers like home inspection companies. Real estate agents have the time-tested know-how to manage these negotiations for their customer.

3. Even with technology, FSBO homes have limited exposure. Finding a buyer usually goes beyond an MLS listing and yard sign. Agents are able to reach more buyers by utilizing their networks, resources and marketing strategies. Not only does this save time for the seller, it is a surefire way to tap into a larger market of buyers.

4. The paperwork is often overwhelming for sellers. Because the industry is subject to more and more regulations, selling a home requires more paperwork than ever before. Shuffling all this paperwork as a novice can easily lead to mistakes and missed steps.

Spending the time to price and list a FSBO, negotiate with parties, market their home, find service providers and complete the required paperwork can lead to plenty of headaches without the payoff. In the end, sellers are realizing that using a trusted real estate professional is the best option.

For more information about finding the right agent for you, contact Davidson Realty at (904) 940-5000.


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