FSBO Facts by Bernie Bloomberg - Realtor

(For Sale By Owner)
  • 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.  

Summary:
  • 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.
92% of all properties are sold by professional MLS Realtors.4% of all FSBOs give up on selling.4% sell mostly to friends / relatives. Source: National Association of Realtors.

Regards
ScreenHunter_271 Dec. 24 17.19.png
Real Estate Advisor - Real Estate Marketing Expert
Built and Sold Hundreds of Homes

Quick Contact

Follow on Twitter Like on Facebook Add on LinkedIn View YouTube Channel Follow on Pinterest Add on Google+ Add on Instagram
Sold & Built Hundreds of Homes - Bernie Bloomberg PREC Personal Real Estate Corporation - Vancouver BC Bernie Bloomberg is an independant contractor of SUTTON WESTCOAST REALTY #1 BROKERAGE IN CANADA 
Not intended to induce breach of an existing agency agreement.   

Mobile: 778-888-6001 Direct Phone: 778-888-6001 Email: