August 25th, 2017
Jon Evans, Realtor
You have decided the time has come, the time to sell. The market is up and the inventory is low. It’s good advice to sell when the prices are up and there is no one arguing that the market isn’t up right now. The biggest decision has been made. Now how do you go about it? Do I list it with a real estate company or sell it on my own? One seems like a headache and the other sounds like it might be expensive.
Here’s the facts and how it relates to the World Golf Village
A study conducted by Collateral Analytics between 2016 and early 2017 has found that For Sale By Owner (FSBO) homes sell for an average of 5.5% less than homes professionally marketed by a real estate company. That number is very close to what you might expect to pay a Real Estate Professional to handle the headache for you. So before you head off to your local hardware store in search of a For Sale By Owner sign let’s take a look at WHY!
88% Of Homebuyers Use An Agent
Home buying can be complicated and unnerving, especially for first time home buyers. Having an experienced real estate professional help find “the right one” is essential for most people. Most agents show brokerage listed homes exclusively when helping buyers.
Buyers that shop for FSBO homes are trying to save money too! A small percentage of buyers want to buy a For Sale By Owner because they see it as a way to buy a home for less.
Market Analysis and Pricing
Many things go into the Market Value of a home. Just because the neighbor down the street sold their home for X amount of dollars doesn’t mean your home is worth the same. Having a qualified agent assist in the valuation and pricing can ensure your home sells quickly and/or for the most money depending on your needs.
Presentation for highest value
The way your home is perceived by potential buyers compared to other homes in your area will make the difference between a fast sell for the highest amount of money and a slow sell for the lowest price. While a FSBO seller may feel confident they have the HGTV touch, it may not be seen that way by buyers. Experienced agents know how your home looks compared to the others and can help you make your home stand apart.
fsbo's minimize reach
The best way to get the most for your home, regardles of whether it’s FSBO or Real Estate Company, is to have multiple people interested in buying at the same time. The best way to be in that position is professional marketing through the MLS where there is more than 3,500 real estate agents here in northeast Florida willing to sell your home. Even if a potential buyer finds your home on the internet they will more than likely consult their agent.
FSBO is a headache
In For Sale By Owner transactions you are the point of contact, salesman, negotiator, question answerer, paperwork handler, inspection and appointment scheduler, deal closer, time manager and closing coordinator. As if preparing your home for sell is not enough, you have to consider if it’s really worth all the added stress and work to hopefully save a little money even though this recent study shows that you will, on average, walk away from the closing table with the basically the same amount of money you would have by contracting with a real estate professional.
Observations of World Golf Village FSBOs
Right now there are 6 FSBO homes that are easily found on the internet in the World Golf Village area. Two condominiums and four single family homes. I will be keeping an eye on these properties over the next few months and update at the end of this micro study.
Asking price for the condos are $264,900 and $279,000. Same floor plan and square footage. Similarly finished. Recent sales show that actual market value is closer to $225,000. That’s a $40,000 and $55,000 over pricing. This is a perfect example of why a lot of buyers stay away from For Sale By Owners. Sellers can ask whatever they want for property, but that doesn’t mean that it’s market value is in line with their personal value or appraisal value. Comparable property was on the market for 215 days to contract date which included one modest price drop from 230K to 225K.
Of the single family homes three have been on the market for 213, 72 and 30 days. Analysis shows asking price is $25,000, $10,000 and $25,000 over market value repectively. No surprise, no sell.
One single family FSBO is appropriately priced (after a price drop in July) at the time of this blog and has been on the market for 72 days. The recent comparable property for this home was under contract in 47 days.
FSBO sellers tend to have the luxury of time which affords them the ability to ask more for their property but doesn’t result in sell.
The one appropriately priced property has been on the market for nearly one month longer (with no contract) than the comparable which sold very close to asking price. This seems to confirm the idea that professionally marketed homes sell for more.
Selling your World Golf Village home? Contact me for a personalized home valuation and marketing strategy today. Put the Florida Homes Realty Advantage to work for you. Professional marketing and agreeable fees.
Jon Evans, Realtor
Florida Homes Realty & Mortgage