Housing sales of existing homes are off by as much as 40 percent right now, and new construction sales are off by more than 50 percent. It’s definitely a buyer’s market, but buyers aren’t buying. Lower interest rates, which typically keep buyers happy, aren’t enticing more buyers to the market. There’s also plenty of conflicting information about FSBO real estate listings and whether they are up or down, yet more FSBO Web sites are going up on the Internet.
Which approach should you take: should you hire a real estate agent or should you create a FSBO listing for your home? If you have to sell your home now, conditions aren’t particularly favorable with either approach, but you can still sell your property and save money at the same time.
Most homeowners want to believe that their home equity continued to increase in value in the last few years, even when the value of other investments may have dropped. This isn’t always the case. Market forces may have eroded your equity substantially, leaving your house worth less than you think. In some cases, your home value may have stagnated, and depending upon when you bought, your home may be worth less now than the balance due on your mortgage.
If you’re selling, your first priority will be to get an accurate assessment of your home’s value. Even if you had your home assessed as little as a year ago, that valuation may no longer be accurate. Your home’s value is determined by a liquid combination of factors that are unique to your home, your neighborhood and to the broader area in which you live.
Knowing what your home is worth will help you price your home to sell and prepare you for the reality of this market. Currently, the best sales strategy is not to hold out for top dollar, but rather, to preserve as much of your equity as possible. More sellers are considering the FSBO sale than ever before, simply to preserve the equity they have. The FSBO selling approach is solid. Independent studies show that homeowners don’t derive enough benefit from using real estate agents to justify the high commission costs that agents charge.
FSBO selling isn’t free. You’ll still have closing costs and other expenses associated with the sale of your home. FSBO selling will enable you to set a price for your home that is in tune with today’s market, and conserve your equity by reducing the overall cost of selling your home. When you sell FSBO, you eliminate what is typically the largest expense associated with a home sale: the real estate agent’s commission.
The sales price of your home is a major factor in finding a buyer in today’s market. Knowing what your home is worth and what it can sell for listed FSBO or with a real estate agent will help you decide how well you can afford the loss of equity with a traditional real estate listing. If taking a loss isn’t in your budget, consider an FSBO listing first.
March 7, 2008 at 8:03 pm
Especially in todays current market I think people are using realtors because they are confused what to do and questioning every step of the way due to current lending crisis affecting the real estate industry. People are cautious and want to buy at the right price and feel an agent can best represent the market and there home sale.
A realtor on a daily basis is constantly in touch with current market value street by street as they sell the plethera of foreclosures.