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?
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
What if there was a way you could search the MLS for FREE just like Realtors
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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.