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5 Reasons Why You Should Not For Sale By Owner!

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

no to FSBO

Here are the top five reasons:

1. Exposure to Prospective Buyers 

Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 16% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the homes they actually purchased?

  • 51% on the internet
  • 34% from a Real Estate Agent
  • 8% from a yard sign
  • 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With 

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. 

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

Garry-Headshot

5. You Net More Money When Using an Agent 

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

What does this mean to you?

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

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How Staging Impacts Buyers …

Home Seller’s may wonder how staging their home when it’s time to sell will impact potential Buyer’s opinions during viewings …  now we know. The National Association of Realtors (NAR) asked over two thousand Realtors to share their experiences of showing staged vs. not-staged homes to Buyers – here’s what they said.

Home-Staging

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Longmont Single Family Home Sales UP 21% YTD

Single Family HomesAttached HomesStatistics from  BARA Sales Report, IRES—Information Real Estate ServicesData deemed reliable but not guaranteedLocation# Sold # Sold %# Sold# Sold%CurrentAvg. SalesAvg. DaysMedian SalesMay-11May-12ChgYTD-11YTD-12ChgInventoryPriceto ContractPriceBoulder689235.3%21529738.1%401$686,69464$580,000Broomfield334433.3%12315613.6%133$350,969 54$309,000 Erie243337.5%9110212.1%142$314,44188$326,000 Lafayette192636.8%849513.1%114$448,73869$444,375Longmont84907.1%28134121.4%406$274,15041$230,500 Louisville152353.3%667716.7%88$386,22153$372,562Superior142471.4%415739.0%55$393,58053$378,750Mountains183277.8%628537.1%351$427,240124$395,500Plains2458141.6%11315537.2%319$567,42874$469,450Total299422107613652009Location # Sold # Sold%# Sold# Sold%CurrentAvg. SalesAvg. DaysMedian SalesMay-11May-12ChgYTD-11YTD-12ChgInventoryPriceto ContractPriceBoulder577226.3%19924422.6%330$298,232 91$257,000Broomfield5740.0%222513.6%40$273,918 102$304,000 Erie3433.3%1311-15.4%10$145,750210$136,500Lafayette81362.5%849513.1%36$162,826 50$160,000 Longmont1125127.3%548048.1%101$197,366 87$190,000 Louisville5980.0%14157.1%12$259,032128$204,000Superior06100%818125.0%6$201,38334$198,200Plains109-10.0%3729-21.6%40$203,955 65$132,000 Total99145431517575DeMarie Niedlingdniedling@fnf.com303-441-5115BOULDER AREAResidential Statistics         MAY 2012