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Most Important Reason for Selling Home as FSBO
- Did not want to pay commission fee: 31%
- Sold it to a relative / friend / neighbor: 36%
- Buyers contacted seller directly: 20%
- Did not want to deal with an agent: 5%
- Agent was unable to sell home: 1%
- Could not find agent to handle transaction: Less than 1%
- Other: 1%
Source: 2024 Profile of Home Buyers & Sellers (National Association of REALTORS®, 2024)
Information From NAR
7 Reasons to Work With a REALTOR® (REALTOR® Magazine)
Most people buy only a few homes in a lifetime, usually with quite a few years between purchases. Even if you’ve bought a home before, laws and regulations change. Real estate practitioners may handle hundreds or thousands of transactions over the course of their career.
The REALTOR® Advantage, Is Your Agent a REALTOR® Brochure (Item # 135-145)
This brochure was created with support from the That’s Who We R® campaign and helps support the messaging that whether buying or selling, REALTORS® bring value to the process.
The FSBO Market
8 Reasons to Choose a Real Estate Agent Over "For Sale By Owner" (Investopedia, Mar. 29, 2024)
Legal paperwork is involved in a home sale, including the seller’s disclosures. A seller must disclose any fact that materially affects the property and can be held liable for fraud, negligence, or breach of contract if they do not disclose properly. An agent probably knows more about disclosure laws than an FBSO seller. Agents can make mistakes, too, but they have professional errors and omissions insurance to protect themselves and give the buyer recourse, so the buyer may not need to pursue the seller for damages.
If You’re Thinking About Selling Your Home Without an Agent, Read This First (Mansion Global, Jan. 12, 2024)
Selling a home themselves has always been an option for homeowners under the guise of “saving a commission,” said Jonathan Miller, the president and chief executive of the real estate appraisal and consulting firm Miller Samuel. But all of the responsibilities associated with selling your own house can become daunting.
Is Buying a House Without a Realtor a Good Idea? (Forbes, Aug. 17, 2023)
Buying a home is not as straightforward as, say, purchasing a vehicle. Buyers and sellers must follow state and local regulations, and buyers need to make sure they’re not missing key details that could cost money.
Is “For Sale by Owner” a Good Idea? (moving.com, Jul. 8, 2023)
Selling by owner is a big undertaking. You’ll be responsible for researching comps in your neighborhood and coming up with a marketable price for your property, as well as all of the marketing, paperwork, and legal compliance that goes into selling a home. Making a mistake in any of these areas can lead to both financial and legal repercussions that could have been avoided with the help of a licensed and experienced agent.
10 Reasons Why For Sale By Owner Fails (Simple Showings, May 3, 2023)
“FSBO sellers don’t often realize how much work realtors put into what they do. A substantial chunk of this work involves being readily available to handle inquiries from buyers. Because most FSBO sellers have full-time jobs and other obligations besides selling their home, it can be difficult to find the time or availability to do this.”
Working With FSBOs
Mastering the Art of Cold Calling for Sale by Owner Leads: Best Practices (Espresso Agent, Apr. 29, 2024)
“What do you think is the key advantage to selling on your own?”
Most likely, they will reiterate the importance of making more money by saving on commission. Acknowledge their decision: “Yes, I clearly understand, because it’s a lot of money.” You’ll want to remind them that they will still have to pay the buyer’s agent a commission, which could be as much as 3%. Also, keep the conversation active by asking: “How will the buyer benefit by working directly with you?” This question forces the FSBO prospect to think about factors they may not have considered, such as the fact that buyers have many more options and, thus, more leverage.
Tips for Success with FSBOs (Vulcan7, Apr. 26, 2024)
Don’t force the process. Experienced agents know the right, open-ended questions can uncover the homeowner’s motivation. When the FSBO says, “I’m doing this to save money,” your response might be: “That makes total sense, but let me ask you, what does saving money look like to you?”
The 10 Best FSBO Scripts (+ Why They Work) (The Close, Jan. 5, 2024)
Kyle’s script uses a bit of reverse psychology to let your FSBO seller know that you’re not on the phone with them to change their minds but to understand what’s motivating them. This FSBO script works because your offer to help identifies you as an ally—and that relationship is far more likely to turn you into their agent down the road.
For Sale By Owner – A Good Idea? (Orlando Realty Consultants, Sep, 14, 2023)
Real estate agents are skilled negotiators who can advocate for sellers during price negotiations, inspection requests, and other critical stages of the transaction. FSBO sellers often lack the negotiation experience to navigate these scenarios effectively, potentially leading to less favorable outcomes or disputes that can derail the sale.
Books, eBooks & Other Resources
eBooks.realtor.org
The following eBooks and digital audiobooks are available to NAR members:
42 Rules to Turn Prospects into Customers (eBook)
The Home Owner's Guide to For Sale By Owner (eBook)
The Home Seller's Checklist: Everything You Need to Know to Get the Highest Price for Your House (eBook)
Home Makeovers That Sell (eBook)
How to Sell Your Home in Any Market (eBook)
OPEN-Question Selling (eBook)
The Real Estate Agent's Guide to FSBOs (eBook)
Red-Hot Selling (eBook)
Selling in Tough Times (Audiobook)
Selling Your Home in 45 Days or Less (eBook)
Seven Steps to Sold: The Secrets to Selling Your Home for Big Bucks... Fast! (eBook)
The Real Estate Agent's Guide to FSBOs (eBook)
Tips & Traps When Selling a Home (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
The Lost Art of Closing: Winning the Ten Commitments That Drive Sales (New York, NY: Portfolio/Penguin, 2017) HF 5438.25 .I25 2017
Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie or Die (Hoboken, NJ: Wiley & Sons, Inc., 2013) H 61.4 S54
The Real Estate Agent’s Guide to FSBOs (New York, NY: AMACOM, 2008) HD 1341 M29
For Sale by Owner (Berkeley, CA: Nolo Press, 1992) HD 1341 D49F
For Sale by Owner: a No-Nonsense Guide to Getting the Best Price for Your House (Chicago, IL: Probus, 1990) HD 1341 L83
For Sale by Owner (New York, NY: Simon & Schuster, 1989) HD 1341 G42
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