Posts Tagged ‘ For Sale By Owner ’

Why You Should Use a Realtor When Selling Your Home

There are some sellers who feel that they do not need a Realtor to sell their home. After all what does a Realtor do that they can’t?  Plus they will save on commission and get a lot more money at the table, right? Well, no, not really.

A few months back a friend of mine wanted to list his house in Boise for sale but he had another friend convince him that he could do this himself. He did ask my opinion on price and I gave it to him – $159K. Well, he felt that was way too low and he did some of his own research and decided it would go on the market for $189K.

I advised him that the price was too high for his subdivision and since he was doing this as a FSBO, the price should be even lower than the $159K.(Nothing makes me laugh more than when I see FSBO’s higher priced than homes that are using a realtor!) He would not listen to me and so proceeded to make one mistake after another in trying to sell the home. Here are a few of them:

1. Listed it almost $30k higher than market value (was in denial that it was a buyers market)

2. Did costly and unnecessary work such as put a new roof on which cost him $6k, all new carpeting -$5k and new paint $1k. (Now he was $12k down on this deal already)

3. Only listed it with a FSBO company

4. Did not lower his price until the property was on the market for 5 months (with only a handful of showings)

After the property was on the market for 7 months he decided he would list it with a real estate company (his friend talked him into using a Realtor that they liked and yes, I am still actually friends with him!) He lowered the price to – $159.9K  (shocker). It sold within 2 weeks at $155K in a cash deal.

Now had he listened to me to start with he would have listed it at the $159K price, would not have done the $12k in work he thought was going to attract a buyer, and he would not have had to pay 7 more mortgage payments.  

So why use a Realtor? Two very important reasons (there are more but this post is already way too long!):

1. Pricing- In this market it is all about pricing and if you are not a distressed seller you must know how to figure out pricing! A Realtor can do this with a thorough Current Market Analysis.  Price your home incorrectly and it is going to sit.

2. Marketing- Listing your home with a realtor puts you in front of thousands of buyers and realtors. Doing a FSBO is like yelling from your front door that your home is for sale. Your neighbors will know, but not many others.

Also, according to the National Association of Realtors, only 1 in 10 homes that sold in 2010 were FSBO.  The median price for a FSBO was  $140K and ones sold using a Realtor sold for $199.3K.

So if you are thinking about selling your home, I highly advise using a Realtor (and if you are in the Boise area please use me!). It will save you time and money in the long run.

For more information regarding selling your home in the Boise, Idaho area or if you would like a Current Market Analysis of your home, please go to my website: http://www.BoieRealEstateChick.com

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