So I am working with a For Sale By Owner (a FSBO). I have a buyer for their home. I am researching the value of the home to see if they have overpriced the home. Turns out, my valuation shows that the seller has not priced their home accurately.
Here is the math:
Value I estimate based on Professional Realtor sources: $326,380
Value the homeowner is trying to sell house for without a realtor to save them commission: $299,000
So, let’s look at numbers.
Sale with realtors assuming each gets 3%=
$326,380 – ($326,380 * 0.06) = $306,797 Profit to seller.
Now let’s look at the FSBO sale to see how much a seller could make without using Realtors.
FSBO sale representing yourself and giving 3% to a realtor who comes with a buyer using Seller’s purchase price of $299,000
$299000 – ($299000 * 0.03) = $290, 030 Profit to seller.
Notice, if the FSBO seller actually pays NO commission and sells their house alone, they still only get $299,000 because they have not priced it accurately with the professional tools that a Realtor has.
So, the seller will lose $16,767 they could have made using professional Realtors!!!!! And a whole lot less hassle!
Moral – use a Professional Realtor. They will help you sell your home faster and for a better price!
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