For Sale By Owner (FSBO) transactions represent a very  small number of home sales.  This market appeals to sellers hoping to pocket more money and buyers looking for a below market deal.   

According to the National Association of Realtors, FSBO's accounted for only 13% of national home sales for 2005.  While in theory, they allow a seller to walk away with more  money in their pocket and buyers more room to negotiate a better deal, they typically end up leaving the seller with less money at the end of the day.  For example: California reported a 15% below market sales average for FSBOs.  North Carolina was also 15% below and Texas was 12% below market. 

Granted, paying a realtor represents a large chunk of change but there is a real obvious reason sellers continually seek out the services of professionals and it shows in the numbers.  Victoria Lorusso of Keller Williams points out that "paying out 6% is well worth it when you risk loosing 15%." 

 Why the difference?  Many home owners over value their homes because they don't understand the current market.  They are not skilled in negotiating and don't know how to market their home to those who will pay the highest price for it. They also often do not understand all the environmental and zoning issues that can come with a property sale.  With the vast majority of buyers using Realtors, they are also missing the benefit of the MLS network and those who wish to have representation in the purchase, effectively making their market very small.  So too, less demand, lower price.

So FSBO or not?  I'd say not. 

www.HomeofFairfieldCounty.com

copyright: Victoria Lorusso