Selling a home can be a complex process and too big an undertaking for a seller to take on alone. A study shows for-sale-by-owner (FSBO) sales have actually declined in the past decade, as more sellers realize do-it-yourself selling can save them neither time nor money.
Even in today's low inventory market, when preparing a home for sale, sellers should rely on an industry professional, such as a REALTOR®, who has expertise and experience to help them protect their investment," says David Tonna, president of the Silicon Valley Association of REALTORS®. "REALTORS® bring value to sellers by helping them effectively prepare, position, price and sell their home."
According to the 2013 National Association of REALTORS® Profile of Home Buyers and Sellers, the share of "For-Sale-By-Owner" sales has steadily declined over the past decade, from 14 percent in 2003 to 9 percent in 2013. More than 40 percent of those sales involved people who already knew each other; in other words, many sellers who did not use a real estate agent were selling to a family member, friend or neighbor. Twelve percent of all FSBOs said they had been contacted directly by a buyer and were not actively attempting to sell their home. Only 6 percent of recent sellers sold their homes on the open market without the help of a real estate agent.
The biggest problems for owners selling without professional assistance were getting the price right (13 percent); preparing the home for sale (12 percent); understanding and completing paperwork (8 percent); selling within the planned length of time (7 percent); and having enough time to devote to all aspects of the sale (6 percent). The median selling price of an open-market FSBO home was $184,000, while the median price for all agent-assisted sales was $230,000.
Tonna says unrepresented sellers often don't understand the complexity, range and timing of tasks they'll have to perform. "Selling a home requires more disclosures and legal requirements than ever before. Sellers also often underestimate the amount of time required to market and show their property; overestimate the value of their property; and must deal with security concerns about strangers having access to their home," says Tonna.
Sellers should prepare their home for sale with an eye toward what appeals to today's buyers. Enhancing curb appeal, showcasing areas like kitchens and bathrooms, and making sure the home is well-maintained and free of clutter, will attract more buyers and can improve value. REALTORS® can provide advice on how to make a home appeal to the eye of a buyer, says Tonna.
Tonna advises sellers to look for a REALTOR® who is familiar with their community. These professionals know the pricing strategies, buyer preferences and marketing approaches that will achieve the best results in your area.
"REALTORS® have invaluable insights into what sells a home. They have a unique understanding of local markets, home features and buyer preferences," says Tonna. "REALTORS® can help sellers set a realistic price and ensure that the proper paperwork and various disclosures and inspections are handled correctly."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.