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FSBOs Vanish, Sellers Turn to Real Estate Pros

For-sale-by-owners are rare nowadays. In fact, the number of FSBOs dropped to record lows over the past year.

Unrepresented sellers make up just 11 percent of the market, down from 13 percent in 2009, according to the 2010 National Association of REALTORS® Profile of Home Buyers and Sellers.

With today’s more complex transactions--such as with short sales and foreclosures and frequent changes in mortgage lending--more sellers are finding comfort in the help of real estate professionals to guide them through the process.

FSBOs once were lured to try to sell themselves because they thought they could save on commission fees, but now sellers are realizing that if they don’t use an agent, it’ll likely cost them more in the long run, experts say.

"Selling by owner does not guarantee the seller will put 5  to 7 percent more in his or her pocket in trade for doing all the work and taking on potentially costly liabilities,” Margaret Woda, associate broker with Long & Foster in Crofton, Md., told The Washington Times. “On the contrary, prospective FSBO buyers have their eyes on that 5 to 7 percent as well. It's more likely the buyer will win this negotiation in a buyer's market with a huge price reduction--probably even larger than the saved commission."

Some FSBO sellers also often make the mistake of listing their home at a higher price than the market warrants. But even if they do find a buyer for that price, unless it’s a cash purchase, the home has to be appraised and many deals can then fall apart.

Source: “Fewer Sellers Going Do-it-Yourself Route,” The Washington Times (Feb. 11, 2011)

Top 10 Reasons for Realtor Representation:

1. Optimize Sales Price.....have a completed
FREE market analysis  completed on your home by a real estate professional to deteremine the current market value. Over pricing your home will result in a much longer selling time or NO SALE at all. A lower than needed price will lose you money out of your pocket.
Get Your Home Ready to Show....a realtor can look at your home without emotional attachment and give suggestions on how to make your home show at its best to potential buyers.
3. Maximize Your Properties Exposure
4. Buyers are more Comfortable Contacting Agents....most buyers are not going to want to share with you their private personal and financial information.
5.Pre-Screen Potential Buyers....realtors can ensure your home is be shown to only serious and
financially qualified buyers.
6. Guard Against Misrepresentation
7. Provide Buyers with
Community Information

8. Ensure YOUR Privacy, Confidentiality, & Safety
9. Negotiate for Top Dollar....Realtors are professional negotiators, have all comparative market information, and know the values of things can affect your sales price.
Access to Customized Marketing Systems

Questions to ask Yourself:

1. Do I have the time and availability to take calls and show the property ANYTIME? Especially to those unannounced visitors that want to see my home NOW!
2. Do I know and have all the legally required forms, contracts, & disclosures to sell my home / property?
3. Can I afford to spend hundreds or thousands of dollars to advertise and market my home / property? (with a Realtor we pick up the tab even if your home/property doesn't sell)
4. Can I afford to receive up to 21% less for my home than a
agent can get me? (proper negotiation and the fact most buyers are going to know your not paying an agent and therefore reduce their offer right off the top)
5. Can I afford to waste months of time and money only to end up hiring an agent anyway? (90% of all "For Sale By Owners" end up having to hire an agent to get their property sold)

Contact Jon Becker today for a Free - No Obligation consulation if you are considering selling Traverse City area real estate

Posted: Tuesday, February 15, 2011 9:44 PM by Jon Becker
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