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Save the Commission - “For Sale by Owner”

According the National Association of Realtors in 2006, there are expected to be 14% of homes sold without representation of a Realtor®.

What was the number one reason given by the homes sellers that they didn't want to use a Realtor®? The answer was they wanted to save the commission. In 2005 thought, the average home represented by a Realtor® sold for 17% more than one sold "For Sale by Owner", just to save a 6% commission.  

In 2005, 5% of buyers in FSBO transactions had a Realtor® represent them and the seller ended up paying on average of 2.5% to the buyers agent. An agent representing the buyer does exactly that, represents the buyer. If you were in court you wouldn't want the lawyer representing your opponent to also represent you.  

Why does a FSBO owner home get so much less for their home than one represented by a Realtor®? The best explanation of this is that the more expose a home gets the more potential buyers will see it. Another major factor for why homes that are sold by owner get less is buyer also knows you are not paying a commission and offers less.  

In 2004, 83% of FSBO's listed with an agent after spending thousands of dollars advertising and extra mortgage payments. If you combine that with 75% of Real Estate lawsuits involved a FSBO.

You wouldn't do surgery on yourself, you would hire a doctor. You wouldn't go to court without a lawyer. So why go into on of the biggest transactions of your life without representation?

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Respect Realty LLC (Expect More)


At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.


Reach out today, we look forward to talking with you!


Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)



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Comment balloon 2 commentsRespect Realty LLC • January 16 2007 08:19AM


Graet stats Todd! I was just reading some of these yesterday. I think we're going to have to start compiling all these stats for our clients!
Posted by Ryan Hukill - Edmond, Realtor, Team Lead (ShowMeOKC Real Estate Pros of KW Elite) over 12 years ago

Ryan - I think if you find the local stats they can vary from state to state, but over all from the other agents I've been talking to over the past year the numbers are pretty consistant nationwide.


Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) over 11 years ago

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