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FSBO’s Strike Out Again!


FSBO recently reported on a new study that shows, once again, that FSBO’s, For Sale By Owners, make less on their home sales in their article,”Study: FSBOs Net ‘Significantly’ Lower Profits.”

It is surprising how peoples minds change when they are selling their home.  Think back to when you bought that home you are now ready to sell.  Do you remember your thoughts and feelings you had when you were going through the process?  You should have the same dedication and concern now that you are ready to sell it.

You Wouldn’t Sell A Diamond FSBO Would You?

Your home is most likely the largest investment you have ever made.  As such, it is the largest investment you will ever sell.  Let’s say you have a home value of $250,000, for example, and instead picture that home as a valuable diamond.  Would you want to try to sell that diamond on Craigslist or on Facebook?

Or would you rather have an expert in diamonds, who knows the true value of that diamond help you?  Wouldn’t you would want the expert that has the connections and resources to the largest group of buyers possible help you sell that diamond?  You would also want to have the legal protection that expert can provide you with to make sure nothing goes wrong with the sale.

Gambling FSBO Usually Loses

The study that was done found that homes sold by their owners instead of with a REALTORS® tend to sell for lower prices.  This frequently was below the amount they would have made even if they had used an agent and paid a commission fee. Basically, you take the risk of just giving away money.  Remember that diamond scenario?  Would you really want to lose money selling your diamond?

The article written was based onSaving Real Estate Commissions at Any Price,” Collateral Analytics Research (Aug. 16, 2017).  According to their website, “Collateral Analytics (CA) develops real estate analytic products and tools to support financial institutions, institutional and retail investors, as well as property capital market activities.”

The study by Collateral Analytics was done on homes sold between 2016 and the first half of 2017.  It compared the difference between the sold prices and found that selling your home by yourself wasn’t the bargain that many home owners thought it would be.

We reported on this and other items to support using an agent in our blog, “Get the Low-Down on FSBO vs REALTORS”.  There are many other reasons outside of this report that support using an agent.

Multiple Listing Service

A large reason to use an agent is that they have access to the MLS (Multiple Listing Service). The MLS is the primary source for listing a home for sale.  It is also the primary source agents representing buyers use to look for available home to purchase.  Almost all real estate brokerages have MLS listings on their website.  As such, that makes your home available to any of their buyers to see.  That expands your pool of buyers.  That in turn, helps sell your home faster.  This will help keep more of your money in your pocket by not having to pay additional monthly mortgage payments.

FSBO Could Put You In Court

There is also the issue of legal protection, knowing the right legal contracts to use, and the consequences of each of the options in the contracts. When you sell a home you want to make sure that you have everything done to protect you from possible litigation later.  That’s where using a REALTOR® will be priceless.  Every year there are changes made to the contracts that agents use to address the different situations that have have come up in the prior year.

You Want to Save Money

If a REALTOR® can sell your home for 23-25% higher than you can as a FSBO, than paying 7% (or less) of that in commission is well worth it. Not only will your home typically sell for more, it will also sell faster.  Even the founder and former chief operating officer of, Colby Sambrotto, ended up using a real estate broker after 6 months of trying to go FSBO.

“Assuming that both buyers and sellers pay the commission, one might have expected something less than this average,” the researchers note. “It appears that many sellers are avoiding commissions while netting home prices less than they would with an agent-represented MLS sale. They are avoiding commissions at any price, even one that exceeds a commission rate.”

If you would like to read the Potential Influences on Prices Paid for FSBOs versus Regular Sales that were used you can do so here.

Worth Doing Right

Selling your home should be taken with just as much care and protection as when you bought it.  Trying to “save a buck” on the most important sale you will make is not usually the best idea.  Once again the data shows that FSBO’s strike out versus using a professional REALTOR®. Be smart and do it right!

As always, thanks for reading and we welcome any additional information or comments you may have.


1920 N. Pittsburgh St., Suite A

Kennewick, WA 99336

#FSBO #REALTOR #sellingyourhome #seller #realestate


Posted by: everstar on August 20, 2017
Posted in: Uncategorized