Anchorage FSBO Market: Part 1

 

Anchorage FSBO Market: Part 1

The For Sale By Owner (FSBO) Market is a popular option for sellers looking to save money on the sale of their home. The common thought is that without the agent’s fee, a seller could save thousands of dollars. Given data from the National Association of Realtors, the following discussion sets out to debunk this belief.

Selling a home is a lot of work- even if you have chosen to use an agent’s services. Getting your house in tip top condition (and keeping it that way) can sometimes be next to impossible. Sellers will have an edge up on the competition if they fix all those “little” things around the house. However, more goes into selling a house than simply its condition. A competitive market price must be set, marketing must be conducted (again and again and again), lenders’ requirements must be met, home inspections, repairs, and appraisals each must occur, and title must be researched. In fact, there are potentially many more steps depending upon the complexity of the sale. As a seller in the FSBO market, you must be able to maintain your day job, keep your house in showroom condition, show your house, and if you get a buyer, you must be able to handle all those steps.  Sounds daunting, right? A REALTOR© is familiar with each and every step as well as the timeline for getting each step completed. He or she is able to effectively market your home and balance all the various parties involved in the transaction, allowing you to focus on living life and maybe spending time keeping your house in showroom condition.

Let’s take a look at some statistics:

·        Did you know 9 out of 10 buyers begin their home search online? Most use sites such as Realtor.com, Zillow, or Trulia, not to mention the many agent websites linking buyers to a local MLS. Homes listed FSBO often have no access to these websites.  Although several sites do exist for FSBO listings (forsalebyowner.com, etc.), you will not receive the exposure you would on traditional sites. Research shows that of the nearly 90% of buyers searching online, only 14% ever search on for sale by owner sites. Compare this to the 45% of these buyers who use realtor.com to search for homes. Listing your home with an agent ensures you get the exposure you need to sell your home with the best possible outcomes.

·        The national average selling price of a home on the FSBO market is $140,300. Compare this to the national average selling price of a home sold with the assistance of an agent which is $215,000. These numbers indicate FBSO sellers do not save money by selling on their own. Even with the cost of commission, sellers listing with an agent saw a higher sales price than those who chose the FSBO route. One of the primary reasons for this is that agents are experts at pricing houses and understanding the market. Many FSBO listings are either significantly overvalued or undervalued. Both scenarios result in the same thing: the seller did not receive the market price for their home.

·       The National Association of Realtors conducted a study in which they asked sellers who listed their home in the FSBO market what their biggest problems were while trying to sell their home on their own. Attracting potential buyers was the most difficult task for 14% of these sellers. Other problems included getting the price right (12%), understanding and completing all paperwork (11%), having enough time to give to this home selling process (6%), getting the house in showroom condition (5%), and selling within the desired timeframe (5%).

So what does all this mean for the Anchorage FSBO market? Sellers can and do list their homes without the aid of a REALTOR©. However, the national statistics hold true in our city as well. Buyers are online searching for homes. They land on websites that offer a large selection of homes. Paperwork is confusing, and the process that must be followed can be even more so. Choosing to list your home with a REALTOR© will afford you many advantages. First, you’ll give buyers instant 24 hour access to view your home online. Second, an agent will prescreen buyers before showing your home. You can feel secure knowing that all buyers who visit your home have qualified through their lender. Third, REALTORs© are experts at negotiating. They will work to get you the best deal on your home. Finally, agents understand the complexities of the escrow process and understand the time table in which various steps must be completed.

Want to learn more about the Anchorage FSBO market? Contact us today!