It’s no secret that it’s a seller’s market right now in Houston and all across the U.S. With the inventory of houses for sale lower than usual, sellers have less competition and more interest from buyers! However, this doesn’t mean that Houston home sellers can sell For Sale By Owner, or FSBO, and make more money that way. As your Keller Williams Memorial real estate team, allow us to share some recent findings with you.
The main reason that a seller will choose to sell FSBO is to save themselves the cost of agent commission. Take the agent out of the equation, make more money. While this makes sense in theory, a new study by Collateral Analytics found that in truth, FSBO sellers actually end up with less money than if they used an agent!
The study reports, “FSBOs tend to sell for lower prices than comparable home sales, and in many cases, below the average differential represented by the prevailing commission rate.”
This means that once everything is said and done, the seller often sells their home for so much less, that even after paying the agent commission, sellers with agents end up spending less money.
There are many factors for this:
- When you use an agent, your listing gets posted to more places than if you were to list your own home. Local MLS properties generally offer compensation to buyer’s agents as well, which is incentive for them to show their clients your home. The more buyers who see it, the better sale you might get!
- Agents are experts at staging a home to sell, and the best agents use the best technology to list your home! Therefore, more buyers may seek your home after seeing it staged to sell, and after viewing a quality listing with professional photos and content.
- Bargain buyers may shop FSBOs more often, as they know the seller doesn’t have an experienced agent helping them out, and they know the seller is saving on agent commission, so they may see these conditions as a great way to score a better deal. This leads to sellers selling for less.
- Seller’s agents are professional, experienced negotiators, and so are buyer’s agents! If it’s a seller up against a buyer’s agent, the buyer’s agent might win. When it’s an agent against an agent, the negotiating terms may fall in your favor. It pays to have a negotiator on your side.
As you can see, there are many reasons why it pays to work with a professional Houston real estate agent! When ready to sell your home in the Houston real estate market, contact us, your Keller Williams Memorial real estate team! We’ll connect you with an agent that can answer all of your questions and help guide you through the entire home-selling process. Contact us today!