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Posted January 27, 2009 by Adam Toren in Vancouver Real Estate
 
 

For sale by owner

fsboThe “For Sale by Owner” (FSBO for short, and pronounced FIZ-BO) is a homeowner who tries to sell his or her home without a real estate agent involved. If you are currently attempting this task yourself, I wish you sincere good luck! Some can do it. Most can’t.

Some get helpful advice from Uncle Fred who bought and sold his home 29 years ago. Others turn to one of the websites featuring “For Sale by Owners” homes for sale. And when was the last time you checked out one of those sites. Exactly!  That’s why approximately 80% of FSBO eventually list with a Realtor®. Of those FSBOs that do sell their own home, 40 percent sold their homes to someone they knew prior to the transaction.

The real estate agents commission is the biggest reason FSBO’s try to sell it them selves but a 2006 NAR study showed that ­selling a home with an agent will increase the sales price by 32 percent at closing as opposed to selling FSBO. That is a national average loss of $59,800 per FSBO by not using a Realtor®.

In any business, selling a product or service requires three elements:

1) A product       2) A price             3) A shelf (or exposure).

FSBOs have the first two elements but lack the third and probably the most important one, exposure. That is the realization many FSBOs eventually come to.

When a home is marketed with an agent, it exposes the home to more buyers, which brings in more buyer traffic through the door. With more traffic through the door, the chances of selling will increase, which maximizes the sales price.

I could change the oil in my car, put down hardwood flooring myself or pull my own teeth but at the end of the day I’d rather have a professional handle the job. It is money well spent if it saves me time, energy and the stress of doing it myself.

If you are considering buying or selling property, talk to a Realtor ®. In the current market, they are needed more than ever.


Adam Toren

 
Adam Toren
Adam Toren is born and raised in Vancouver BC and loves everything Vancouver BC has to offer. He loves traveling and exploring new and unique restaurants and places around the world.