“Seller’s regret” is the flipside of “buyer’s remorse,” and it could apply to homeowners who sell without the benefit of a real estate agent. According to the National Association of Realtors’® (NAR) latest study, their homes generally earn them less money.
FSBOs (for-sale by owner) earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent, according to NAR. Here’s the breakdown:
All agent-assisted homes: $250,000 (median selling price)
All FSBO homes: $190,000
FSBO homes when buyer knew seller: $160,300
Why do some sellers choose to go it alone? Some may want to avoid paying an agent’s commission – but even factoring that in, FSBOs still stand to make less on their home sale.
“Talk to an agent and find out what they suggest for the commission, and then do the math yourself,” researchers write on NAR’s Economists’ Outlook blog. “The closing price for the agent-assisted seller is likely going to be way above a FSBO. … in reality, homes sold by the owner make less money overall.”
Homeowners seem to be hearing the message: Only 8 percent of sellers last year – an all-time low – chose to sell their home themselves, according to NAR’s 2017 Profile of Home Buyers and Sellers. That figure has been falling since 2004, when 14 percent of homeowners sold their own homes.
Of the share of FSBO transactions last year, 38 percent of the homes were sold to a buyer that the seller knew, such as a friend, neighbor or family member. The majority of FSBO transactions, however, were sold to buyers the owner did not know.
Source: “Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think,” National Association of REALTORS® Economists’ Outlook blog (July 9, 2018)