Why FSBO Sales Are on the Decline and What It Means for You

by The Zack Grimmer Group, Powered by Real

Why FSBO Sales Are on the Decline and What It Means for You

The real estate world is ever-changing, and one trend that stood out last year was the historic low of successful For-Sale-by-Owner (FSBO) transactions. According to recent data from the National Association of Realtors (NAR), FSBO sales accounted for only 6% of total home sales throughout 2023. But what’s behind this drop in successful For-Sale-By-Owner sales?

Let’s explore some of the challenges FSBO Sellers frequently face and why working with a local REALTOR might be the better choice.

The Challenges of Selling FSBO

Selling your home without the help of a local real estate agent might seem like a way to save money on commission fees, but the transaction process often comes with its own set of hurdles.

Here are some common struggles FSBO sellers encounter:

Pricing the Home Correctly:

Nearly 17% of For-Sale-By-Owner sellers find it challenging to determine the right asking price for their property. Without a comprehensive understanding of the local housing market, pricing a home too high or too low can lead to missed opportunities or undervalued sales.

As a professional REALTOR, we have access to in-depth data and statistcs, along with out local housing market knowledge. We work with our Sellers to determine what local houses are selling for, and assist with determining a price that would attract home buyers.

Navigating the Paperwork:

Real estate transactions involve a significant amount of documentation and legal requirements. About 10% of FSBO sellers cite difficulty in completing the necessary paperwork as a major obstacle.

Either hiring a local real estate attorney or a licensed real estate agent helps ensure you're following local laws, have the best representation and saving yourself the headache.

Meeting Timeframe Goals:

Selling a home can be time-sensitive, and 13% of FSBO sellers struggle to close their sale within their desired timeframe. This delay can create additional stress and financial strain.

As real estate agents, we have the process down to a science. From our marketing strategy to our deal work flow, we strive to be efficient and timely. When we meet with our clients, we work together to determine a realistic time frame.

The Financial Reality of FSBO Sales

While saving on agent commissions is usually the primary motivation for FSBO sellers, the numbers often tell a different story.

In 2023, the median selling price for For-Sale-By-Owner homes was $380,000, compared to $435,000 for homes sold with the assistance of a licensed real estate agent. That’s a $55,000 difference—a significant amount that could outweigh any perceived savings.

As real estate commissions are negotiable, Sellers should interview a few REALTORS. The real estate agent should provide you with an Estimated Seller's Net Sheet, which would give you a rough estimate of your net proceeds from the sale. Using this can help you determine if you'd be able to save money from selling on your own.

The Value of Working with a Real Estate Professional

Navigating the real estate market can be complex, but a local real estate agent brings expertise, resources, and a network that simplifies the home sale process.

Here’s how working with an agent can benefit you:

Accurate Pricing Strategies:

REALTORS use Comparative Market Analysis (CMA) tools to price your home competitively, ensuring you attract the right buyers while maximizing your return.

A CMA is a detailed evaluation of similar properties in a specific area to determine the most likely market value of a property a seller wants to list or a buyer is considering purchasing, by comparing it to recently sold properties with similar features in the same neighborhood; essentially helping to establish a competitive price for the property based on current local housing market conditions. A CMA is not an appraisal.

Streamlined Paperwork:

From sale contracts to property disclosures, REALTORS manage the details so you don’t have to worry about missing critical steps.

Effective Marketing:

Real estate professionals have access to listing services, social media marketing strategies, and a databse of other REALTORS and potential clients that amplify your home’s visibility.

The Zack Grimmer Group is brokered by Real Broker, LLC. In July 2024, Real surpassed 20,000 real estate professionals across North America. When listing with The Zack Grimmer Group, Powered by Real, your property is marketed to all Real agents, along with local REALTORS.

Time Management:

Selling a house is time-consuming. On average, a REALTOR spends close to 40+ hours working on a sale. With 190+ tasks to complete, real estate agent handles the heavy lifting, allowing you to focus on your next move.

Let’s Make Your Home Sale a Success

Whether you’re buying, selling, renting or investing in real estate, partnering with a local REALTOR can save you time, reduce the stress, and help you achieve better financial outcomes on your real estate sale.

Ready to explore your real estate options? The Zack Grimmer Group, Powered by Real is here to helo with all things real estate throught PA, NJ, MD & Fl! Let’s chat about how we can make the real estate transaction process seamless for you.

Source: National Association of Realtors

The Zack Grimmer Group, Powered by Real, is a Residential & Commercial Real Estate Team that was founded in 2021 by Zachary ‘Zack’ Grimmer. We assist our clients who are looking to BUY, RENT, SELL or INVEST in real estate throughout Pennsylvania, New Jersey, Florida and Maryland! We are tech-enabled and data-driven, giving our team the necessary tools to successfully broker real estate in any market. Our mission is to provide white-glove service to our clients and investors. Browse our website at www.ZackGrimmerGroup.com to learn more about all the real estate services we offer to our community.

Please feel free to contact us at admin@ZackGrimmerGroup.com or (215) 667-0239 or follow us on Facebook & Instagram, to learn more.

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