If you have followed the American housing market over the last few decades, you probably know about some of the great things that have been said about the “For Sale by Owner” trend, shortened as FSBO. But should you put up your Irvine home for sale on your own or invest in an experienced realtor?
In the mid 2000s, a controversial study by economists Steven Levitt and Stephen J. Dubner, authors of Freakonomics, argued that realtors may not have been worth their commissions in the sizzling hot housing market that eventually came crashing down years later. One of the basis of the Freakonomics argument was that some realtors did little more than what the nascent FSBO websites were doing at the time.
Fast forward to 2016: FSBO websites essentially succumbed to major players such as Trulia and Zillow, and realtors are getting on average 13 percent more on properties sold than with FSBO. This does not mean that FSBO does not work; it may be a good strategy in a buyer’s market, but realtors are still getting significantly more.
Here is something that you should know about major FSBO websites: most of them welcome realtors, and some sites are actually operated by licensed real estate professionals for the purpose of complying with state regulations.
According to a 2014 report published by the National Association of Realtors, the median FSBO transaction was valued at $208,700. The equivalent value obtained by realtors was $235,000.
Online listings are only one piece of the larger real estate puzzle. As a homeowner, you will need to prepare yourself to determine not only the value of your home but also the price range for your market. If you can dig into MLS data and chart two years worth of transactions, you will be able to come up with a historical price band; however, you will also need to round up the available inventory in your neighborhood and research current prices in search of a soft spot.
Once you have accomplished the pricing band task, you will still have to come up with a marketing plan and screening of prospective buyers. In the end, economic data tells you that you may end up getting 13 percent less at the closing table. Under current market conditions, you are certainly better off listing with a trusted Irvine real estate agent.
Call (714) 454-6304 today to talk to an Irvine real estate agent about putting your home up for sale and finding a new place to call home.