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THE 5 TRUTHS ABOUT FOR SALE BY OWNER

Monday, December 19, 2022   /   by Rebecca Wilson

THE 5 TRUTHS ABOUT FOR SALE BY OWNER

Many people believe that they can save time and money by selling their homes themselves. Statistics show that this is not the case. 

Here are the 5 reasons as to why selling yourself will cost you more money than selling with a Professional Realtor.

FSBO = For Sale by Owner

1.  These Sellers Will Have To Pay A Commission (80% to 85%)

      • The majority of home owners who chose to use a do-it-yourself brokerage will still pay at least 2% in commission. Why? Just because they are free from the commission on the listing side, they will still have to pay the agent who brought the winning offer for the Buyer. 
      • When someone decides to use a "Do-It-Yourself Brokerage" such as Purple Bricks or Property Guys, there are up-front, flat rate fees to get started. This means that if the home doesn't sell or they decide that they would like a professional to help later on, they have already given them their fee, and it is non-refundable.

2. These Listings Attract Fewer Showings and Fewer Offers than Listed Properties

      • Professional Realtors have expertise in setting the right price for a home. They have access to other Realtors and large networks and have proven marketing strategies for maximum exposure. NAR statistics show that for sale by owner homes sell for 10% less than agent listed homes. 
      • Do-it-yourself Sellers do not have the market knowledge to be able to decide on a proper marketing strategy, they often price their homes too high (or sometimes far to low) and they have minimal exposure to potential home buyers. These factors reduce the amount of showings for the home, the home stays on the market longer than others in the same area, and often sell for less than market value.

3.  Sellers Have to Put in Time and Effort and Become Stressed

      • What these Seller's don't realize is that they will have to market their home themselves as well as taking on the full time job of coordinating showings, arranging to be home or have someone at the property when the showings are taking place and then going through the process of the home sale itself. 

4. Lack of Experience Results in Three Major Road Blocks

      • The top 3 problems reported include: Pricing the home correctly without proper market knowledge, dealing with offers and completing the paperwork themselves and selling their home in their desired time frame.

5. A LOT of Listings that are For Sale By Owner Get Cancelled - Here Are The Numbers

      • According to the Real Estate Board of Hamilton & Burlington over the last year in Hamilton and Halton, only 463 homes were listed with Purplebricks. 
      • Of these 463 homes listed with Purplebricks (the best known do-it-yourself brokerage), 104 listings (22%) either cancelled or expired. 
      • Of these cancelled or expired home listings, 74 homes (71%) re-listed and sold with a professional Realtor. 26 homes (25%) didn't sell at all. 3 homes (3%) are back on the market with Purplebricks but are not yet sold and 1 home re-listed with Purplebricks for a lower price and sold.

Before you make the mistake of selling by yourself, let's talk.

Click below to book a free phone consultation at your convenience: 

https://calendly.com/shaldunwilson/

The Wilson Realty Group | Keller Williams Edge Realty
3185 Harvester Rd Unit 1
Burlington, ON L7N 3N8
905-963-7355

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