Perhaps you’ve heard the tale of Colby Sambrotto, founder of the website ForSaleByOwner.com, who used a REALTOR® to sell his New York apartment. In 2011, The Wall Street Journal reported that Sambrotto hired an agent after an unsuccessful attempt to sell the home on his own.
ForSaleByOwner.com is a website that charges fees to homeowners to help sell their homes themselves. Sambrotto found the site on the belief that home sellers could save thousands by selling direct.
Initially, Mr. Sambrotto used online advertising and classified ads to market his home -just as he preached on his website. However, after six months of trying to sell it himself with no success, he reportedly paid an agent 6% for the successful sale of his NYC apartment. Ultimately, his REALTOR® sold the home at a sales price 7.5% higher than what Sambrotto attempted to sell it for himself, more than covering the agent’s fee.
I can certainly understand why a FSBO service is so appealing to homeowners. Websites like ForSalebyOwner.com promote eliminating the unneeded REALTOR® to save thousands in commission. However, the fact that more than 80% of FSBO sellers ultimately turn to a REALTOR® to sell their homes demonstrates that going it alone isn’t all it is cracked up to be.
Typically, when homeowners sign up with an online FSBO company, they get a listing on the company’s website and a sign to place on their lawn –this leaves everything else up to the homeowners themselves. More often than not, DIY homeowners learn the hard way that selling a home requires more than an online listing and a sign on the lawn.
The value that a REALTOR® adds to a home sale more than compensates for the standard 6% commission. Besides having access to better marketing tools and resources than a FSBO homeowner, a Realtor knows how to price a home to sell. Realtors also leverage their professional network of which the typical homeowner does not have access. In fact, over half of all home sales occur between agents.
Finally, if you set aside the facts and simply examine it intuitively, ask yourself who has the best motives and will work harder to sell a home -a FSBO website that charges upfront fees, or a professional Realtor who is willing to market a home at no cost to the homeowner unless it successfully closes?
The moral of the story is that you get what you pay for. Follow the lead of do-it-yourselfer Colby Sambrotto -hire a professional and get your home sold.