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Dont Sell A Home On Your Own Just Because Its A Sellers Market
Dated: April 12 2021
Don’t Sell a Home on Your Own Just Because It’s a Sellers’ Market
In a sellers’ market, some homeowners might be tempted to try to sell their home on their own (known as For Sale By Owner, or FSBO) instead of working with a real estate agent that specializes in their area. When the inventory of homes for sale is as low as it is today in the Tampa Bay Area of Florida, home buyers are eager to snatch up virtually any house that comes to market. This makes it even more tempting to sell a home as a FSBO. As a result, some sellers think selling their house will be a breeze that saves them money on commission and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more money in the long run.
According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent. And often times, the amount of money you lose on the sale price is far more than what you would have paid in commission.
The NAR report explains:
“FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000...Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”
When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):That’s a lot of money to risk losing when you FSBO – far more than what you’d save on commission or other fees when you list with an agent (Like The Sandy Hartmann Group!). Despite the advantages sellers have in today’s market, it’s still crucial to have the support of an
expert to guide you through the process. Real estate professionals are trained negotiators with a ton of housing market insights that average homeowners may never have. For instance, can you negotiate through multiple offers with various contract terms and possible escalation clauses to get the best deal? What about inspection or insurance issues? How will you market your home to the right buyers and pre-qualify the ones you let in the front door? A real estate agent’s expertise can not only get you a sale price far higher than you would get on your own, they can also save you from all the problems that can arise when a contract isn't drafted property by the other party and more.
If you’re ready to sell your house in Pinellas County and the Greater Tampa Bay Area of Florida this year...and you’re considering doing it on your own, be sure to give us a call first to see if you'd save more money and time with a qualified Realtor helping you. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. Let’s connect soon to discuss how a trusted real estate team with over 30 years of local expertise can help you, especially in today’s housing market.
Andrea is the Managing Partner of The Sandy Hartmann Group. Andrea was born and raised in the Tampa Bay area and is a licensed Realtor with over 15 years of Marketing and Finance experience, holding ....
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