Bernie Bloomberg, Realtor on: FSBO Facts
Being a FSBO (for sale by owner) can be costly.
4% of all FSBOs give up on selling.
4% sell to friends / relatives.
- There are currently approx. 10,000 properties listed on the MLS in Vancouver.
- Every month hundreds of listings expire on the MLS without having seen one single serious buyer.
- Every month the vast majority of Craigslist postings are turned over to Realtors / MLS.
- Every day dozens of similar homes come onto the market competing for the same buyer in your area!
- Buyers do not trust sellers as much as they trust Realtors. Realtors must act truthfully and ethically.
- Buyers usually want the purchase price reduced by the commission the seller saves as a FSBO.
- In addition, buyers want the regular discount they would ask for as if it was not a FSBO.
- FSBOs reduce their sales prices at least once before engaging a Realtor / MLS.
- In the rather rare event that a FSBO sells his property he discounts the already reduced price once more.
- The vast majority of buyers are represented by Realtors.
- FSBOs are usually up against a professionally trained Realtor who SOLELY represents his client, the buyer, like a good lawyer would represent you, the seller, in a legal case.
- FSBOs pay approx. 1.5 - 2% commissions of the sales price to the buyer's Realtor.
- FSBOs pay their real estate lawyers a fee of 0.5% of the sales price which equals $5,000 based on a $1 mil contract whereas sellers protected by Realtors just pay a few hundred dollars to a public notary.
- FSBOs pay approx. 2.5% commissions to the buyer's Realtor.
- Sellers represented and protected by a professional Realtor pay approx. 3% commission.
- In contrast when FSBOs go on their own they reduce the sales price on average twice and discount the already reduced price on top of it when an offer comes in.
- FSBO pays 2.5% commissions on $800,000 = $20,000 to buyer's Realtor.
- FSBO hires own Realtor and pays total of 3% commission on $800,000 = $24,000
- FSBO reduces price by at least 5% of $800,000 = $40,000
- FSBO's total loss $36,000. ($4,000 savings on commissions above and $40,000 loss on the reduced price above.
- Usually the FSBO reduces the price once more by 4% on $800,000 = $32,000
- Usually the FSBO pays $4,000 to his lawyer which he does not need when working with a Realtor.
- Usually a good Realtor sells higher than the FSBO!!! Source: National association of Realtors.
- Very few Realtors like me spend a lot of dollars on promoting sellers' properties inc. social media.
- Very few Realtors like me have your home staged at their costs.
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