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Question: Can a home be sold without the help of a competent full-service Realtor?
Answer: Of course it can! But does it make economic sense to do it that way?
As a seller your interest is in realizing the highest price obtainable for the sale of your home, correct?
Years of experience in the real estate profession have proven that the highest obtainable price is possible only if a seller can expose the property to the best market, in terms of quantity and quality, and if the seller has the proficiency to identify, satisfy and obtain a commitment from the best-qualified buyer.
Let’s begin with quantity:
Consider the facts: Although a Realtor may spend thousands of dollars each month on advertising and may have hundreds of yard signs strewn across town, only approximately 20 percent of legitimate buyers will be attracted by these types of media.
So… how many of that 20 percent will be attracted by your single yard sign and occasional ad? Unfortunately not many!
For sale by owner signs attract:
How do you as the seller reach the other 80 percent of the buyer pool?
That's where the quality of the market comes in…
Once again, consider the facts: For a full-service real estate firm about 90% of its buyers are brought to the table by cooperating brokers.
It is apparent that the best-qualified buyers are availing themselves of the (free) services offered by real estate professionals when purchasing a home. Why would they track down ads and signs when a competent and experienced realtor will sift through the available inventory for them?
Professional realtors like Lorraine Bennett attract these quality buyers!
So… logic would command that the only motive that could possibly lure buyers to a for-sale-by-owner home would be their hope of saving the same commission that the FSBO is also trying to save! Would you be surprised to learn that the median sales price for sellers who do not use a real estate agent is anywhere from 16 – 20% less than a home sold by a realtor? (That’s three times more than what it would have cost to hire a real estate professional!) Sellers perceive they will save money by not paying a real estate agent's commission. In reality, it is the buyer who saves the money because the buyer usually offers the market value less the normal real estate fee.
That brings us to the third criteria for a seller obtaining the best and highest price for a property, proficiency:
It takes skill, experience and objectivity to find, qualify, service and sell a prospective home buyer in an arena where dozens, if not hundreds, of homes, sellers and agents are vying for the same prospects.
Can you, as a FSBO, compete with this?
Let me share something with you….
I love shopping at Wal-Mart because I love bargains. My husband, Bob, absolutely hates it! He never ceases to remind me that you only get what you pay for. That is so true! I may put up with longer lines, horrible customer service and disgusting bathrooms for a bargain on my laundry detergent at Wal-Mart, but are you, Mr. or Mrs. Seller, going to settle for less trying to save on the sale of what is probably the most valuable asset you possess, only to cost you so much more in the end than if you had come to me?
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