Real Estate Agent vs For Sale by Owner

Introduction

In recent years, there has been a consistent decline in the prevalence of For Sale By Owner (FSBO) home sales. In 2021, FSBO transactions represented just 7% of the housing market. But why do 93% of home sellers collaborate with a real estate agent? Modern homebuyers are highly tech-savvy, expecting properties to be prominently featured on national home search platforms—often overlooked by FSBO sellers. Real estate agents bring much more to the table, including negotiation prowess and the ability to streamline the intricate closing process. Furthermore, sellers who enlist the services of an agent typically end up with higher profits from their home sale, even after accounting for the agent’s commission. This article delves into why entrusting your home sale to a real estate agent is prudent.

Maximizing Sale Price

One of the most compelling advantages of having a real estate agent on your side is the potential for a significantly higher sale price. Recent data indicates that the median sale price for FSBO homes last year was $208,700, whereas homes sold with the assistance of agents commanded an average of $235,000. While almost half of FSBO sellers opt for this route to evade agent commissions, the figures make it evident that, more often than not, sellers employing an agent realize a superior financial outcome, even after factoring in the commission. Impressively, 15% of FSBO sellers concede that achieving the right price for their home is the most challenging aspect of the sale.

Comprehensive Marketing and Exposure

In the era of digitalization, an effective online marketing strategy and broad exposure are indispensable for selling a home swiftly and lucratively. Over 93% of homebuyers initiate their search online, with the process of locating the perfect property being cited as the most anxiety-inducing phase of buying a home. When you engage a real estate agent, your property is enlisted on the Multiple Listing Service (MLS), ensuring prominent visibility on renowned home search platforms. Prospective buyers can readily access vital property specifics such as the number of bedrooms, bathrooms, square meters, and high-quality imagery that vividly showcases your home’s standout attributes. Conversely, fewer than 20% of FSBO sellers in the previous year ventured into posting their properties on local or national search sites or online classified platforms. By contrast, the most common marketing tool among FSBO sellers was placing a yard sign (in Phuket, this can be seen where a banner is printed out with contact numbers on it and the banner is hung from a wall or fence)—an approach that may fall short in today’s fiercely competitive market.

Simplified Paperwork and Expert Negotiation

Mastering the intricacies of paperwork and negotiation can be intimidating for many FSBO sellers. Real estate agents handle buyer and seller transactions daily, possessing the expertise required to optimize the outcome of your home sale. When you enlist the services of an agent, you gain access to:

• A streamlined paperwork process spares you from the complexities and ensures a hassle-free closing experience.
• Widespread visibility on home search websites and other online marketing channels, maximizing your property’s exposure to potential buyers.
• Precise pricing guidance, preventing you from the pitfalls of underpricing or overpricing your home.
• A skilled negotiator who diligently secures the most advantageous deal on your behalf.

Conclusion

In conclusion, the sustained decline in FSBO home sales underscores the benefits of partnering with a real estate agent when selling your home. From achieving a higher sale price to benefiting from extensive marketing exposure and expert negotiation, the statistics and facts overwhelmingly substantiate the wisdom of engaging a seasoned real estate professional. While some sellers may initially contemplate FSBO as a cost-saving measure, it is abundantly clear that the value added by a real estate agent frequently translates into a more profitable and stress-free home-selling experience. Therefore, when you find yourself selling your home, the prudent choice is to seek the guidance and expertise of a trusted real estate professional.

Follow Us:

– Facebook: Keller Williams Phuket
– YouTube: Keller Williams Phuket Videos