Should I Hire A Real Estate Agent to Sell My Home?

According to Realtor Magazine, the number of For Sale by Owner transactions fell to a record low of 7 percent of all home sales in 2018, down from 8 percent in 2017, according to the National Association of REALTORS®’ 2018 Profile of Home Buyers and Sellers.

FSBOs have decreased dramatically since 1981, when they accounted for 15 percent of all home sales. Today, consumers rely heavily on real estate agents, with 87 percent of home buyers using real estate agents last year, according to NAR’s report.

Sellers are realizing that hiring the right real estate agent can make a difference. 90 percent of whom listed their homes in the MLS—placed high priority on the following five benefits for using a real estate professional: To market the home to potential buyers (20 percent), to assist with pricing the home competitively (20 percent), to sell the home within a specific time frame (19 percent), to find a buyer for the home (14 percent), and to assist with their expertise to help the home sell better (14 percent).

Sellers by far say the agent’s reputation is the most important factor when selecting the right real estate agent, at 31 percent. According to NAR, sellers also placed high value on the agent’s trustworthiness and honesty (19 percent) and whether the agent was a friend or family member (15 percent).

Most FSBOs, according to the NAR report, also showed that FSBOs typically sold for less than the selling price of homes represented by an agent. FSBO typically choose to sell their home to avoid paying a commission to a real estate agent. Since time is money, the perception of savings can be debunked if a FSBO cannot find a suitable buyer in a shorter time frame which in most cases a FSBO property tends to be on the market for significant amount of time. In addition, many FSBO end up paying a commission to a buyer’s agent after not being successful in selling their home.

For Sale By Owner (FSBO) Statistics according to National Association of Realtors (NAR)

FSBOs accounted for 7% of home sales in 2017. The typical FSBO home sold for $200,000 compared to $265,500 for agent-assisted home sales. This adds up to homes sold by agents getting an average of 23% more than FSBO sales. This number reflects the expertise real estate agents bring to a sale.

Did You Know...

Most FSBO Sellers Still Have to Pay Commission

That’s right, the majority of FSBO sellers still have to pay 3% in real estate commissions. Successful FSBO sellers save themselves a fee for their listing agent, but most still have to pay the agent who brought in a willing buyer. The cost savings for not using a listing agent is minimal considering listings agents pay for marketing and advertising which is no charge to the seller.

36% of FSBO Sellers Believe It Will Save Them Time

According to research by Zillow, 36% of FSBO sellers think selling without an agent will save them time. Unfortunately for them, the opposite is true. Because FSBO sellers aren’t using an agent, they have to do everything themselves. Staging, photographs, the listing, paperwork — all of these responsibilities fall to the seller. Even if you hire experts to help with some of these things, it can still quickly eat away at your time and money. Seller must also make themselves available for all showing requests.

FSBO Listings Attract Fewer Offers Than Agent-Listed Properties

Whether it’s due to to realtor’s expertise in setting the right price or their access to other real estate brokerages and potential buyers, FSBO listings attract fewer viewers and fewer offers than properties listed by real estate agents. FSBO sellers often have to keep their houses on the market for longer periods of time and sell their houses for less money. Agents understand the listing process, market trends, and how to find the right price and qualified buyers. Most buyers also prefer to hire a real estate agent to assist them in finding and purchasing a home.

36% of Sellers Attempt FSBO Sales Before Turning to an Agent

According to the NAR, over one third of attempted FSBO sellers end up listing their homes with an agent.

Only 11% of Sellers Don’t Use an Agent

Just 11% of sellers sold their property FSBO, meaning a full 89% of property sellers use agents. There’s a reason so many people use realtors — they know how to sell houses and can save you money and time every step of the way.

Your Listing Will Reach Far More Potential Buyers With an Agent

Not using an agent means more than just not paying real estate commission. It’s much harder for FSBO sellers to get their home in front of prospective buyers. Real estate agents have access to local MLS, or Multiple Listing Service databases. When your listing agent puts your home on the MLS, your home is exposed to thousands of potential buyers and real estate agents.

For more information contact:

Marsha Bowen Washington
Coldwell Banker Residential - Livingston
973-436-5152
[email protected]

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