[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f2ozk0335wblzl":3,"$f2emv3tus0uf1":38,"$fbwk2pqjjqsc7":42},{"item":4,"previous":26,"next":32},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":9,"isInfographic":14,"categories":15,"isVideo":14,"videoThumbnail":9,"videoSource":9,"publishedAt":24,"updatedAt":25},1092,"selling-your-house-on-your-own-could-cost-you","Selling Your House on Your Own Could Cost You","In this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a \u003Cstrong>For Sale by Owner\u003C\u002Fstrong> (FSBO). They rationalize that they don’t need a real estate agent and believe that they can save the fee for the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2018\u002F02\u002F19\u002Ftop-5-reasons-to-hire-a-real-estate-professional-when-buying-or-selling\u002F\">services a real estate agent offers\u003C\u002Fa>.","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2018\u002F05\u002F21141046\u002F20180524-Share-STM.jpg","In this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a \u003Cstrong>For Sale by Owner\u003C\u002Fstrong> (FSBO). They rationalize that they don’t need a real estate agent and believe that they can save the fee for the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2018\u002F02\u002F19\u002Ftop-5-reasons-to-hire-a-real-estate-professional-when-buying-or-selling\u002F\">services a real estate agent offers\u003C\u002Fa>.\u003C!--more-->\r\n\r\nHowever, a \u003Ca href=\"http:\u002F\u002Fcollateralanalytics.com\u002Fwp-content\u002Fuploads\u002F2017\u002F08\u002FCA-RESEARCH-Saving-Real-Estate-Commissions-at-Any-Price.pdf\">study\u003C\u002Fa> by \u003Cem>Collateral Analytics\u003C\u002Fem> reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.\r\n\r\nIn the study, they analyzed home sales in a variety of markets. The data showed that:\r\n\u003Cblockquote>\u003Cem>“FSBOs tend to sell for lower prices than comparable home sales, and in many cases \u003Cstrong>below the average differential represented by the prevailing commission rate\u003C\u002Fstrong>.” \u003C\u002Fem>(emphasis added)\u003C\u002Fblockquote>\r\n\u003Ch4>\u003Cstrong>Why would FSBOs net\u003Cem> less\u003C\u002Fem> money than if they had used an agent?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nThe study makes several suggestions:\r\n\u003Cul>\r\n \t\u003Cli>\u003Cem>“There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” \u003C\u002Fem>In other words, ‘bargain lookers’ might shop FSBOs more often.\u003C\u002Fli>\r\n \t\u003Cli>\u003Cem>“Experienced agents are experts at ‘staging’ homes for sale”\u003C\u002Fem> which could bring more money for the home.\u003C\u002Fli>\r\n \t\u003Cli>\u003Cem>“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”\u003C\u002Fem> If more buyers see a home, the greater the chances are that there could be a bidding war for the property.\u003C\u002Fli>\r\n\u003C\u002Ful>\r\n\u003Ch4>\u003Cstrong>Conclusions from the study:\u003C\u002Fstrong>\u003C\u002Fh4>\r\n\u003Col>\r\n \t\u003Cli>FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.\u003C\u002Fli>\r\n \t\u003Cli>The data suggests the average price was near \u003Cstrong>6% lower\u003C\u002Fstrong> \u003Cstrong>for FSBO sales\u003C\u002Fstrong> of similar properties.\u003C\u002Fli>\r\n\u003C\u002Fol>\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nAs \u003Cem>Dave Ramsey\u003C\u002Fem>, America's trusted voice on money, \u003Ca href=\"https:\u002F\u002Fwww.daveramsey.com\u002Faskdave\u002Fposts\u002Frealtor_vs_for_sale_by_owner\">explains\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“Research has shown that, between mistakes, lack of negotiating skills, pricing errors and general exposure on the market, you’ll cost yourself more than the real estate commission…You’ll come out slightly better and with a lot less hassle if you use a top-shelf agent.”\u003C\u002Fem>\u003C\u002Fblockquote>","\r\nAs \u003Cem>Dave Ramsey\u003C\u002Fem>, America's trusted voice on money, \u003Ca href=\"https:\u002F\u002Fwww.daveramsey.com\u002Faskdave\u002Fposts\u002Frealtor_vs_for_sale_by_owner\">explains\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“Research has shown that, between mistakes, lack of negotiating skills, pricing errors and general exposure on the market, you’ll cost yourself more than the real estate commission…You’ll come out slightly better and with a lot less hassle if you use a top-shelf agent.”\u003C\u002Fem>\u003C\u002Fblockquote>",false,[16,20],{"id":17,"name":18,"slug":19},6,"For Sellers","sellers",{"id":21,"name":22,"slug":23},41,"For Sale by Owner","for-sale-by-owner","2018-05-24T10:00:58Z","2018-05-21T16:28:29Z",{"id":27,"slug":28,"title":29,"featuredImage":30,"publishedAt":31,"contentType":10,"isVideo":14},1091,"why-have-interest-rates-jumped-to-a-7-year-high","Why Have Interest Rates Jumped to a 7-Year High?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2018\u002F05\u002F22141805\u002F20180523-Share-STM.jpg","2018-05-23T10:00:43Z",{"id":33,"slug":34,"title":35,"featuredImage":36,"publishedAt":37,"contentType":10,"isVideo":14},1093,"drop-in-inventory-fuels-sales-slowdown-infographic","Drop in Inventory Fuels Sales Slowdown 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