FSBOs Net Lower Profits in La Crescenta and La Canada

September 21, 2017

Recently, I was stunned when a property in a desirable neighbourhood near me sold for considerably less than market value and had not been listed in the Multiple Listings Service. I wondered, why didn’t the owners give their house a shot at getting the highest possible price, especially in this hot seller’s market? So, I read up on a new study by Collateral Analytics, which examines the price differences between homes sold through traditional agents versus For-Sale-by-owners. It turns out, many FSBOs sell their homes below the average differential of the prevailing agent commission rate. In plain English, some home owners may be tempted to try to avoid commission costs, but FSBOs can backfire and turn into a much lower sales price. Time after time, I have found that using the right agent can significantly increase a property’s sale price through:
*better home presentation for increased marketability
*maximum buyer exposure through a comprehensive marketing plan
*higher offers from buyers via pricing and counter-offer strategies
*negotiating inspection results
*speeding up time to closing by handling paperwork with title, escrow, lender, inspectors
FSBOs often rely on “rarely accurate” information sources like Zillow, whereas realtors understand the market better and thus typically net a higher profit for the homeowner. After all, getting top dollar for your property is the ultimate goal, and working with an experienced agent will ensure you’ll net the highest possible return on your home investment.

You can view Saving Real Estate Commissions at Any Price by Collateral Analytics at
http://collateralanalytics.com/saving-real-estate-commissions-at-any-price/

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