Anchorage FSBO Market: Part 2

 

Anchorage FSBO Market

          The For-Sale-By-Owner (FSBO) Market often presents a tempting picture to buyers. They may choose to search these homes believing it will save them the commission fee or will garner them a great deal. Others may simply be searching to see what inventory is available. Whatever your reason for searching through these listings may be, we urge you to educate yourself as much as possible on the home buying process. Learn where an agent’s commission comes from, and understand the time commitment and risks involved in going through the process unrepresented. While we believe choosing an agent to represent you is a wise move, we are more concerned with providing buyers with resources so they can make the best decision for their family and particular needs. Below is a short discussion on a few common reasons buyers choose to search the FSBO market alone.

One of the most common reasons unrepresented buyers scour the FSBO market is because many are confused over where the commission for their agent’s services comes from. Buyers, your agent’s commission comes from the seller. Please don’t think you will have to pay their commission on top of your closing costs. The seller will be paying their commission. An agent can help you find the right home, negotiate the price for you, and handle all the paperwork in addition to showing you information on comparable homes and helping you determine how much you really can afford. So the question remains: why would you not want to take advantage of an agent’s services when you get this wealth of knowledge at no additional expense to you?

Secondly, buyers may search the FSBO market hoping to negotiate with the seller for a better deal on a home. Usually these buyers have bought and sold homes previously with or without the assistance of an agent. Occasionally, this might work in a buyer’s favor. However, it is likely unintentional on the seller’s part. I have to ask: why would a seller who doesn’t know the buyer want to give them a great deal on their house? Most sellers would instead be happy to pocket the additional savings rather than sharing those savings with the buyer. Sellers on the FSBO market are most likely hoping to recognize a substantial savings. This being the case, a buyer may find himself or herself struggling to negotiate a “fair” price for a home. If you do find your dream home on the FSBO market, consider the time and effort involved in purchasing that home. Are you prepared to present an offer, negotiate the price, work through the home inspection and appraisal process, and keep in contact with your lender?  

The Anchorage FSBO market has only a handful of houses currently listed. If you are a buyer only looking at FSBOs, you are limiting yourself. The traditional market is picking up and more people are beginning to list their homes with an agent’s help. These homes are listed on the Alaska MLS and can be viewed through our website. We want you to know you can visit our website to find homes in Anchorage today with no pressure attached.

 And buyers, whether or not you choose to enlist the services of an agent, please, please, please go get yourself prequalified through a lender before you begin searching for your next house. You will have greater bargaining power if you are prequalified before you ever step foot into that dream home.

Happy House Hunting!

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!