Annually, the National Association of REALTORS® (NAR) does a massive survey of people that purchased and sold a home in the prior year to gather information about them and their transaction. This is done using a 125 question survey that was sent to nearly 160,000 people, in randomly sampled geographic areas, that purchased or sold a home in the prior year. The results are published by NAR in their “Profile of Home Buyers and Sellers“. From this publication, some great information is obtained (in my humble opinion, the best and most accurate information available) about home buyers and sellers as well as the process they went through, the homes they bought or sold as well as about their agent if they used one.
Sellers’ appetite for selling their own homes remains at a near-record low…
As the chart below, which covers the time period from 2001 to 2019, illustrates, the percentage of homes sold using a real estate agent or broker (the blue bars) has increased from 79% in 2001 to 89% in this year’s survey. Meanwhile, the percentage of sellers that sold their own homes “For Sale By Owner” (FSBO) declined from 13% in 2001 to 8% in this year’s survey.
“Should I sell my home myself” is something that some sellers are asking today, particularly those in fast selling neighborhoods and areas where the inventory of homes for sale is low, after all, how hard can it be to sell a home if homes are in such high demand? Well, there’s a lot more to selling your home than it may appear on the surface, particularly today with all the many regulations that affect a home sale.
But I know people that are interested in my home…
Yes, finding people “interested” in your home is not that difficult, the tricky part is finding a buyer that is qualified, ready to buy, and is interested in your home at a price and under terms that work for you. Lately, with the shortage of inventory of homes for sale, the problem hasn’t been finding a buyer, it’s been selecting the right buyer the leads to a successful closing and, for this, there is nothing better than having a professional real estate agent representing you who knows what to look for in a buyer. (We work hard on this and sure would appreciate a “Like”)
The number of homes sold “For Sale By Owner” (FSBO) dropped to a record low of just eight percent of all homes sold, according to the National Association of REALTORS (NAR) 2015 Profile of Home Buyers and Home Sellers report. A commentary posted on the Economist’s Outlook Blog by Amanda Riggs, Research Survey Analyst for NAR. on the NAR website indicated that homeowners that sell as a FSBO often find it doesn’t turn out as they expected either in the amount of time it will take on their part nor in the price they ultimately receive. Highlights from Rigg’s commentary include:
Forty-eight percent of people who sell without a real estate agent think that if they sell themselves, they’ll end up doing a little extra work in exchange for not paying a commission or closing fee. According to the research, however, what they actually get is a lot of time spent hustling to make the sale and a final selling price that is less than what the market can bear.
FSBO sellers sold for prices lower than listed homes. According to the report, the median selling price for all FSBO homes was $210,000 last year. For homes sold with the assistance of an agent, the median selling price was $249,000 ̶ almost $40,000 more for the typical home sale.
(We work hard on this and sure would appreciate a “Like”)
Over the years I have seen many “St Louis For Sale By Owners” (FSBO’s), you know those people that decide they can sell their house themselves without the help of a professional, make a variety of mistakes in the way they handle the sale of their property. The mistakes range from minor ones that will probably just cost them some heartburn to major mistakes that could lead to serious legal troubles.
If you are a homeowner looking to sell your home today I don’t think I need to tell you it could be a challenge. In an effort to address some of the questions you may have about selling your home now as well as provide some useful tips and information
Missouri Online Real Estate, Inc. 3636 South Geyer Road - Suite 100, St Louis, MO 63127 314-414-6000 - Licensed Real Estate Broker in Missouri
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