Yes, it’s an age-old question, and one that’s debated often. I like to just throw out the facts on certain situations and let you decide for yourself.
Case in point: Seller calls me a few months ago and asks me to provide them with a CMA (comparative market analysis). I do so, and meet with them to go over my findings. I showed them the analysis to back up my knowledge that their home will sell for around $230,600. I can’t guarantee that number, but my track record backs up the fact that I’m usually within $1,000 of being correct.
So, a few months go by, and they sell their home FSBO for $221,500. Sounds like they came out pretty well, right? They sold the house for about 96% of what I could have/would have sold it for.
Now, consider this; they paid 3% to the agent who brought the buyer. So, in essence, they got 99% of the amount they would have fared with my services. They did all the work and took on all the expenses of marketing, phone calls, showings, etc, and likely paid more in fees than they would have with me, because of the volume I do.
So, the question is, did they come out ahead? What do you think?
About Ryan Hukill
I think this is actually an atypical example, and few FSBOs go this well.
I'd venture to guess that additional expenses may have also been at play given no leverage with a Title Co., lack of familiarity with reasonable repair allowances, etc.