To FSBO or Not to FSBO?

 To FSBO or not to FSBO?

Running stats for Southeastern PA this morning.
Taking a look at the market as a whole and breaking it down into counties.
When looking at the market reaction we start here and then we will narrow down more specifically into the immediate neighborhood surrounding your home.
The age, style, size, quality and condition become important factors as well as exterior influences such as:
Is there a train running through the back yard?
or....
Is the view from the front porch a golf course?
But to begin with - we start looking at the market as a whole.
We have seen the sale prices increase over the last year and we have all heard the stories of multiple offers and homes being sold higher than asking price.
Buyers are paying the difference between the sale price and the appraised value.
Below are the stats for the Median Sale Prices and the Median List to Sale Ratio.
These stats represent single family homes separated by county. This does not include condos.
As you can see, the seller market is still strong and most homes are still selling at asking price (100%).
Because this is happening I am seeing more "for sale by owners" come across my desk which is typical for this type of market.
Here is what I am finding with the fsbo scenario:
I always ask the Seller - How do you know the Buyer? How did you arrive at the sale price?
If the answer is - We are friends or family.... then it's not unusual if my opinion of value is quite a bit higher or lower than the sale price because often there are personal circumstances in play.
But if the answer is - We don't know each other, I advertised it via _______ (enter any random fsbo site available here) because I wanted to save money on realtor fees......
Then I will immediately ask - so do you believe that your sale price is equal to market value?
When I ask this question most say Yes and some say - It's a bit lower because we saved money by selling it privately.
Also, most fsbo sellers do not get an appraisal before they list their home.
In fact, most fsbo sellers base their opinion of what they believe the market price to be upon:
- public websites that are frequently inaccurate
- data provided by a realtor more than 30 days ago
- opinions from a neighbor, friend, family member.
^^ This is all totally normal. But unfortunately, misleading.
This is how I personally handle appraisals for sales:
I never look at the sale price until after I have determined my own opinion.
I don't want to know the sale price until I have completed my own unbiased research.
The confirmed, accurate data that I rely upon is current as of the day I visit the house.
After I reach my opinion I look at the sale price and if there is a difference I will explain it.
Quite often my opinion of value is higher than the sale price of a fsbo.
And lately, it's been significantly higher than the 5-6% the seller believes they have saved in realtor fees.
In short, the fsbo sellers are not saving money.
Instead, fsbo sellers are losing money and doing all of the legwork of selling their house in the process.
I completely understand wanting to save money wherever possible and there is no judgement here at all. I routinely share ways that can save money. It's one of my favorite things to do.
I am only here to share what I have discovered during my daily research.
It's your decision to do what you feel is best for you and I will just be over here sending all the high vibes your way.






Thanks for reading!





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