While the vast majority of those choosing to sell their homes without the services of a traditional RE broker do so in order to save the 6% commission, I believe in today’s challenging RE market this may not always be the best reason.
With many markets having 12 months or more of unsold houses on the market and buyers driving a hard bargain, sellers should consider using the 6% to lower the price. In weak markets smart sellers must be in front of the pack in reducing the selling price of their home. If you really want to sell quickly you must offer better value than other homes for sale in the area. It does no good at all to wait for others to drop their price and then meet the reduced prices. At that point you don’t offer anything special.
If you want to sell your home quickly check the prices of homes for sale in your area and use the six per cent you save by not using a realtor to reduce the price of your home. Stores who offer early Christmas promotions when they expect holiday sales to be weak use the exact same reasoning. If they wait until December to cut prices many if not most shoppers will have already purchased their gifts at some other store where there were early bargains available.
Recent studies show that those selling their homes without a traditional realtor are selling their homes for pretty much the same price as those who use realtors. One survey actually stated that those selling on their own actually got higher prices on average than those using a realtor. Use the six per cent you save to reduce the price of your house and sell your home quickly. FSBO may save you the 6% realtor commission but if you don’t sell you home, your saving is 6% of nothing.
I can be reached at jbritz@yahoo.com. As always readers comments and suggestions for blog topics are appreciated.
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