FSBO Facts by Bernie Bloomberg - Realtor
- There are currently approx. 10,000 properties listed on the MLS.
- 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 there are dozens of similar homes coming onto the market competing for the same buyer.
- 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 the sales price at least once before finally engaging a Realtor / MLS.
- In the rather rare event that a FSBO eventually sells his property he discounts the already reduced price again.
- The vast majority of buyers are represented by a Realtor.
- FSBOs are usually up against a professionally trained Realtor who ONLY represents his client, the buyer, like a good lawyer would represent you, the seller.
- 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 $4,000 based on a $800,000 contract whereas sellers represented by a Realtor just pay a few hundred dollars to a Notary Public.
- FSBO pays 2.5% commissions on $800,000 = -$20,000 to buyer's Realtor and to his own lawyer.
- FSBO reduces price by at least 5% of $800,000 = -$40,000
- FSBO hires own Realtor and pays total of approx. 3% commission on $800,000 = +$24,000
- FSBO's total loss $36,000
- Usually the FSBO reduces the price once more by another 4% on $800,000 = $32,000
- 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 seller’s properties inc. social media.
- Very few Realtors like me have your home staged at their costs.
- Most Realtors just list your property on the MLS and distribute a few flyers, if at all.
- In contrast, we do have the Biggest Free Marketing Program inc. MLS and we fully pay for it in most cases $5,000 and a lot more.
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