Harleysville-Lansdale Real Estate and More

Are you the type of person who cuts their own hair?  If so, then going FSBO (for sale by owner) may be for you.  However, if you give yourself a bad haircut, you can always go to a salon or barber to fix the mess and in the long run, your hair will grow back.  But what happens if you mess up the sale of your house?  Will the money you lost grow back?

National statistics indicate that a FSBO's average selling price is 16% less than transactions using a professional real estate agent and take twice as long to sell.¹  So even if a seller pays a 5-6%² commission, they still may net 10-11% more at the settlement table by using an agent.  Face it, to sell for top dollar requires professional preparation, marketing strategies, experience, and skillful negotiations. 

Plus by using professionals, sellers avoid:

• Buyers who are looking to take advantage of unrepresented sellers, (i.e. It's a big game in the FSBO market.  Buyers want FSBO's to knock some percent off the sales price because they know the seller doesn't have to pay a real estate commission.)
• The self-inflicted pressure sellers feel to lower the asking price by a corresponding percentage, (Why would you ever sell FSBO and knock the commission off the price?  It is crazy but FBSO's do it ALL THE TIME, they take on all the risk and work involved in selling their house but don't end up saving the commission anyway.)
• Entering into agreements where they end up paying a buyer's agent anyway and have no representation, (Most buyers want and need professional Realtors when purchasing a home, especially first time buyers.  So many FSBO's agree to pay a certain percentage to a buyer's agent anyway.  The FSBO ends up unrepresented with an agent who is strictly loyal to the buyer and negotiates the best terms and conditions for the buyer.  All to save a few percent?)
• Making an error in the pricing of the home, (too high and the property won't sell and suffer from market stagnation in the long run - too low and the buyer wins and the seller loses).
• Other pitfalls and unknowns, (i.e. settlement delays, disputes, unqualified buyers, mortgage contingencies, home sale contingencies, resolution of home inspection issues, contract language and timelines, certifications, Use & Occupancy permits.  Realtors don't get paid until a property goes to settlement and FSBO's don't sell their home until they successfully make it to the settlement table.  Is it really worth the risk to go it alone?)

Bottom line:  Good Realtors are worth their commissions.  They can achieve better results than the average seller trying to go it alone.  Plus a good Realtor can make the process as headache-free as possible when sellers have enough stress and other things to worry about.  Sure not all sales with Realtors are perfect or bump-free, but the likelihood of a positive outcome for the seller is far better.  If you really want to go FSBO or cut your own hair, go ahead.  We just don't recommend it.

¹ Data from the National Association of Realtors (Yes, they are on the "side" favoring Realtors but the numbers don't lie and there is no national organization of FSBO's tracking this type of information.  All you hear are the cocktail party stories of the guy with the bad haircut who sold his house himself, saved big (or so he says or actually believes) but might have forgetten to mention a few key details.)

² Real estate commissions are a negotiated item.  The commissions indicated are for example only.  Neither we or any association has set or recommended a specific commission.

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Selling Without a Realtor is Like Cutting Your Own Hair, Copyright © 2010, The Scott Loper Team, All rights reserved.