Why FSBO?

Why give away thousands of dollars in real estate commissions when you can sell your apartment yourself? The tools and resources needed to help you buy or sell your home are now available to you through ownersandbuyers.com. And most of the information that was exclusive to real estate agents or otherwise difficult to obtain is now easily accessible online.

According to the National Association of Realtors®, over 75% of people looking for a home start with the Internet. And only 10% of repeat buyers say they need a real estate agent's help with price negotiations, paperwork and finding the price at what comparable homes are selling. And the NAR goes on to say that, when asked what was the most difficult task of selling on your own, less than 10% of FSBO sellers mentioned attracting potential buyers or having enough time to devote to selling their own home. So, you see, you really can do it yourself.

On the surface, buying or selling a home can seem overwhelming, which is why there’s such a strong temptation to turn everything over to a real estate agent and hope for the best. What most buyers and sellers don’t understand, however, is that much of the process has to be done by them, regardless of whether a real estate agent is involved. So in most cases, eliminating the middleperson can save both the buyer and seller time, headaches and money.

You take on a big responsibility when you choose to buy or sell a home. It requires planning and research. By eliminating the middleperson, you gain more control over the entire process. With your determination and our help, it’ll be well worth it.

Here are just a few reasons why you should buy or sell a home on your own:

SELLERS

Preserving Your Equity When you sell your own home, you don’t pay a real estate commission. Typically, commissions are about 6% of the selling price of a home; so for a $1.3 million apartment (the average sales price in Manhattan), you could save up to $78,000.  The median salary in the New York City area is only about $49,000.  How can the services of a broker possibly be valued at more than what a typical New Yorker takes home in one year?  What, exactly, are you getting for $78,000?  Most sellers only agree to this outrageous sum because they don’t have to write the check up front.  Since the broker’s fee comes off the top at the closing, the seller doesn’t really feel the pain of giving up so much of his equity.  To better understand how commissions reduce your equity, go to our My Equity page

Stronger Negotiating Position You set your own price when you sell your own home. After doing research and using the strategies outlined in our Owners Resources, the price of your home will be competitive. Arriving at this price yourself gives you a better understanding of the market and more negotiating confidence. Best of all, you’ll never be pressured by a real estate agent to accept a low-price offer. For a telling look at the tactics used by real estate agents, go to Avoiding the Pressure.

Getting the Best Salesperson You can sell your home better than anyone.  Real estate agents shuttle buyers in and out of homes knowing very little about them. But because you’ve lived there, you know all the charming, sellable features of the home, as well as details about your surrounding community, such as schools and shopping. This is important to buyers. Also, you set your own schedule and decide when and to whom you’ll show your home.

Sell It Quickly If you need to sell quickly – you’ve been transferred, you’ve found another home you like and need to move on it as soon as possible – you may choose to set a lower asking price than if you have more time.  Fortunately, by selling your home without a real estate agent and thereby avoiding the typical 6% commission, you’ll have a greater degree of flexibility in pricing your home, all while achieving the same profit as your neighbor who has to pay a broker.  

BUYERS

Save Money In a strong real estate market like New York, sellers can command top dollar.  However, when the market changes, smart buyers will seek out FSBO sellers.  Why?  Because in a slowing market, FSBO sellers will be able to adjust their asking prices and still earn higher profits than those who hire real estate agents.  So both the seller and the buyer win.

Look at What You Like and Can Afford We’ve all experienced it or heard others complain about it.  You go to a broker and tell her what you’re looking for.  Then, inexplicably, she takes you to see apartments that don’t fit your requirements or that are out of your price range.  This makes sense when you think about it.  Brokers can only show you what they have.  Sometimes, rather than saying “I’m sorry, we don’t have any apartments like that at the moment”, some brokers will drag you around to see the listings they do have, regardless of how little they have to do with what you want – a colossal waste of your time.  

Work Directly with the Seller First, you’ll be able to see a home in the presence of the seller. This can be invaluable as you walk through a house and need answers to even the smallest questions. Second, you can negotiate the terms of the sale directly with the seller, without the interference and agenda of a real estate agent. For help with finding the home that is perfect for you, please refer to our Homebuyers’ Guide.

Adapted, with permission, from our friends at www.dwellwell.com.