"The median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200;” So as a seller you would get 16% more according to this study."
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Then buyers should focus on FSBOs instead of getting ripped off buying agent represented properties.

Oops, I already gave this rebuttal.

I also gave info from unbiased sources earlier in the thread that disputes the previous post. You folks keep posting that stuff, and I'll keep posting mine.

Elaine,

You might want to read the blog attached to the link below.

The median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200;” So as a seller you would get 16% more according to this study.

So if the NAR statistics are correct, FSBOs certainly offer the best value. I don't know why, at that kind of savings, anyone would want to get gouged buying a home that has agent representation.

The biggest disadvantage would be if accurate:

The median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200;”

This figure comes from the NAR 2005 Buyer and Seller Profile.

These stats are also from the National Association of Realtors:

Method of Home Purchase, By Use of Internet:

Agent/Broker - 81%

Direct from Builder - 10%

Direct from previous owner whom buyer didn't know - 5%

Lee,
Hi!
I am a Realtor of 24 years and my team members always use another Realtor team member to sell their own homes and investment properties!
Another Realtor is not invested emotionally! This is everything at the eleventh hour at the negotiating table!
A home is typically the largest investment one will have! It is critical to use the best if you expect the best!
Bottom line: More money in your pocket and less legal exposure!
My goal is to achieve my client's goal quickly and honestly!

"I can tell you that on average about 10% of homes are sold without professional representation."

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I'm quite sure that 10% figure does not include flat-fee listed FSBOs as they are assisted by agents in getting on the MLS.
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"According to an NAR survey, when an owner does sell on their own, they sell for a price that averages 16% LESS than the average for homes sold by Realtor."

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There are unbiased sources that differ with the NAR. In separate studies by Northwestern University and Stanford University, “by owner” sellers were found to be as effective as agents in maximizing the sales price of their homes. After commissions are factored into the equation, the studies reported, sellers who sell “by owner” actually save more money, and retain more equity, than sellers who sell through agents. The September 08 issue of Consumer Reports magazine also reported that FSBO sellers are more likely to get their asking price while agents deliver, on average, a sales price that is $5,000 less than the original asking price. Furthermore, its pretty much of a given fact that higher end homes are sold through agents which skews the "sell for" number. I did notice the words "sell for" were used without any reference about net.
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The survey also showed that 90% of homes are purchased by buyers represented by agents. Why would so many buyers select to use an agent? Because from their perspective we work "for free", Great negotiator, knows the property values, etc.

So that leaves you with 10% of the buyers, who will be looking for a deal. How well will you negotiate?

Are you prepared to exclude 90% of the buyers?

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I don't follow this at all. It seems the poster is assuming all buyer agents ignore FSBOs as he possibly may. Hopefully, most Realtors abide by their code of ethics concerning fiduciary duty, and when looking for the best house for their client includes FSBOs as well.

Lee,

Please do not interpret my posts or blogs to mean that everyone that sells their house should do a FSBO. It is truly an individual by individual decision, and is certainly not for everyone. However, the decision should be made using unbiased information.

Lee, I don't know but you can find the Nar position on FSBO's here in the toolkit area
http://www.realtor.org/toolkits/prepackagedsalesmeetings

Dunes

Lee
The long and the short of selling a home is that EVERY home is sold "by owner".

The difference is representation - do you want professional representation?

Most of us know that the values in the desert have been plummeting for the last few years. Sellers want to sell, but in most cases will end up either
a) not moving
b) perhaps moving then leasing out their former home
c). Trying to do a short sale
d) Giving the property up by foreclosure or deed en lieu.

Where are you on the list?

I can tell you that on average about 10% of homes are sold without professional representation. So if you can sell on your own, knock yourself out. However, the other side is that you saw the number of people trying to sell on their own that post questions on Trulia, I usually ask them "what if you have a serious questions...who do you ask?". Trulia is not a substitute for competent, authoritative advice.

If you really NEED TO SELL, then your options are limited. As you know there are a lot of homes on the market in your area right now. Many are foreclosures. So how do you think you will do competing with over 700 foreclosures?

According to an NAR survey, when an owner does sell on their own, they sell for a price that averages 16% LESS than the average for homes sold by Realtor. The survey also showed that 90% of homes are purchased by buyers represented by agents. Why would so many buyers select to use an agent? Because from their perspective we work "for free", Great negotiator, knows the property values, etc.

So that leaves you with 10% of the buyers, who will be looking for a deal. How well will you negotiate?

To sum up:
With so many homes are the market, how can you compete? Are you prepared to exclude 90% of the buyers?
Is selling your best option? A Realtor who analyzes your situation might be able to offer you some alternatives.

I recommend talking with a couple, compare their proposals, then go from there.

Good luck.

Lee,

Below are three links. The first is to a blog with a discussion on the subject. The second is quite long, but contains a lot of info on doing a FSBO. The third has info on selecting an agent. Good luck on whatever path you decide on.

http://www.trulia.com/blog/for_sale_by_owners/2008/12/top_8_…

http://www.trulia.com/blog/rockinblu/2008/08/thinking_about_…

http://www.trulia.com/blog/rockinblu/2008/12/i_ve_got_my_fin…

Lee-
The disadvantages of a FSBO is that you are pretty much on your own to market, hold open houses and get it seen to the public and agents. Alot of agents don't get drawn to sale by owners because some don't offer a buyers agent commission. When you have people who want to see your home are they pre-approved? working with a realtor? Serious? These are the questions that realtors filter through so you don't have to.

When you list your home with an agent you are getting your home on RMLS and getting it seen by thousands of agents with serious buyers who are in the market looking to buy a home. It saves you time and money as well, the agent takes care of the flyers, open houses, marketing and making sure that your home is being exposed. As well as taking care of your best interests and making sure that you make sound business decisions with advice and expertise.

Advantages- You save on paying a 6% commission but if you want your home to sell you would offer a buyers agent commission of 2.5% or higher. You have total controll of paper work and scheduling open houses and marketing your home.

The advantage in our area is that you may get more for your home if you sell it, Lee, as opposed to paying the listing side commission. You set the showings, draw up the sales and purchase agreement, follow up with potential buyers, ascertain what the proper asking price should be, decide which advertising to use and pay for, be available as much as seven days per week to show it, negotiate with another Realtor who may be representing the buyer, make sure all the title work is being handled in a timely mannner to expedite closing, get the buyer pre-qualified if that hasn't already been done and handle any issues at closing that may arise. Some of those could well be disadvantages, but if you decide to try it on your own...Good Luck!