If you are thinking about selling real estate, this is not the market to go For Sale by Owner, if you actually want to sell your property.
I make this statement based on a recent study of 2011 Home Buyers and Sellers which, among other things, measured the actual number of homes which sold on the open market without professional assistance. After factoring out private sales between parties who knew each other in advance, the study reported that only 6 percent of these homes marketed without Realtor assistance actually made it to the closing table. That number is down from a For Sale by Owner highpoint in 1987 of 20 percent of sales.
The median transaction price for sellers who used an agent was $215,000, well above the $150,000 median for a home sold directly by an owner the report continued. While these numbers reflect a national survey, one can expect that the local market would follow a similar trend. The most difficult tasks reported by unrepresented sellers are attracting potential buyers, getting the right price and understanding and completing paperwork.
It is understandable why the vast majority of homes sold were assisted by a Realtor. The study continued to expand that 40 percent of homebuyers first learned about the home they purchased from the Internet and 35 percent from a real estate agent. The marketing power of a local multiple listing site, like GCAR.net, and the experience of the 1350 working Realtor members of the Greater Chattanooga Association of Realtors, further underscore the importance of using a Realtor in the current market we are working in.
As we have reviewed in recent weeks, the importance of pricing a property correctly is a key factor to getting it sold in this market. It is not surprising that this was one of the areas that unrepresented sellers struggled in, as they attempted to sell their property. One alternative solution to pricing it yourself is to hire a local appraiser to visit your property and give you their opinion of fair market value.
If you are willing to potentially sell a property for less than fair market value and are comfortable with a 6 percent success rate, then you may want to try For Sale by Owner. If you really want to sell your property this year, then consult a professional Realtor and put an expert to work for you!