(Published on - 5/11/2017 2:31:32 AM)
I met Bob today in one of the local shops in town today and as he was leaving, he asked me for a list of multi unit building in the area . He then went on to tell me about a family member moving out of the area and wanted my opinion of what I though of their attempt to sell their home without the services of a Realtor or as we like to say in the industry a FSBO( pronounced fizzbo ). I gave him a couple of thoughts, we wished each other a good night and I pulled my iPad out and emailed him the list of multi unit buildings.
I received an email from Bob this evening thanking me for the list and if I could repeat what I told him about my opinions of going it alone as a FSBO. Instead of merely repeating my thoughts I did a little research and below is my answer to Bob.
Thank you for reaching out to me today. Real estate as you know is a commodity and the price is set by supply and demand. Last year 418 residential properties sold in Woodridge and of that number 402(96.17%) utilized the services of a Realtor. I don't know what the percentage of the remaining 3.83% that sold to a family member but let's say half (1.915). Just under 2% were successful and I haven't even attempted to track how many for sale by owners eventually turned their homes over to Realtors after failed attempts .
Last year the average asking price in Woodridge on those 402 homes was $259,573. The average sales price was $251,850 or 97.1 % of asking price. When a buyer knows that a seller is not paying a professional fee to a Realtor they typically use that in their negotiations against the seller to bring down the price.
With the low percentage of for sale by owners that are successful and the higher percentage of dollars a Realtor can provide, why would anybody not utilize the services of a professional? See, it's not what you pay in fees that matter it's what are you netting at the closing table when it's all said and done? If you have any more questions please don't hesitate to contact me.
This is just the tip of the iceberg, I didn't get into all of the little annoying things that make using a Realtor a far better investment. It's a good life when you use a Realtor to list your most valuable asset.