FSBO - A good idea?

A recent survey conducted by Clever Real Estate reveals that homeowners who choose not to use a real estate agent when selling their property are twice as likely to express dissatisfaction with the selling experience. The survey, which included 1,000 home sellers in 2022 and 2023, found that these sellers often realize they may have made less money on their home sale and faced more stress by not having a professional representative.

Interestingly, the survey also highlights a change in perspective among those who initially believed that real estate agents were overpaid and not significantly more knowledgeable about the home selling process than the average seller. After their transactions, these respondents admitted to making mistakes without the help of a professional.

The survey further reveals that more than a third of non-agent sellers, including those who sold their homes as FSBOs (for sale by owner) or to iBuyers, found the selling process more difficult than expected. They faced challenges such as buyer distrust due to the absence of an agent, difficulty understanding contracts, and making legal mistakes.

The consequences of going it alone as a seller are also evident in the survey findings:

1. Lower sales price: Homeowners who sold without a real estate agent are three times more likely to report losing money on their home sale. On average, those who sold with an agent earned $46,603 more in profits compared to those who sold without an agent in 2022 and 2023. Many unrepresented sellers now believe that their homes could have sold for more if they had used an agent.

2. Longer selling process: Sellers without an agent are nearly twice as likely to state that they did not accept an offer for at least three months. In contrast, 53% of sellers who used an agent accepted an offer within a month of listing their home. Interestingly, many homeowners who chose not to use an agent did so with the intention of selling their homes faster.

3. More stress: Half of the home sellers who did not use an agent admit to experiencing moments of distress during the process, with 52% feeling overwhelmed by the entire sales process. In comparison, homeowners who hired an agent were more likely to express satisfaction and less stress.

Although homeowners can initiate their home searches online, the majority still rely on real estate agents to buy or sell a property. The National Association of Realtors®' (NAR) 2023 Profile of Home Buyers and Sellers reports that 89% of buyers and sellers in the past year used a real estate agent, marking an increase from the previous year.

Furthermore, the survey reveals that only 7% of homeowners sold their homes as FSBOs in the last year, matching the all-time low recorded in 2021 according to NAR data. FSBOs generally do not perform as well in the market compared to professionally represented homes, with FSBOs selling at a median price of $310,000, while listed homes sold for $405,000, according to NAR's data.

In conclusion, having a real estate agent to navigate the home buying and selling process provides peace of mind, especially in a challenging market with high prices, elevated mortgage rates, and limited inventory, as emphasized by NAR President Tracy Kasper.

Instead of selling on your own, consider selling your Charlotte home with One Charlotte Realty. We offer a competitive commission rate of just 1%, allowing you to save on the traditional 3% commission fee. Additionally, you have the flexibility to choose how much you want to pay the buying agent, ranging from 0% to 3%.

Selling your home with One Charlotte Realty means you can maximize your profits while still receiving excellent service and expertise from our experienced agents. Our team will work diligently to market your home, attract qualified buyers, and negotiate the best possible price for your property.

If you're ready to sell your home and want to take advantage of our low commission rate, please don't hesitate to contact One Charlotte Realty at 704-670-0000.

We'll be happy to guide you through the selling process and answer any questions you may have.

Source: Florida Realtors 12/7/2023