How Much Money Selling Your Home By Owner Really Saves You

We hear it all the time as Realtors, a neighbor or potential client tells us that they would love to list their house for sale with a Realtor, but someone told them they could list it themselves to save on the commission.

However, the truth is that many of those folks call us back when they realize the hassles and costs that come with selling their home themselves. Not only do they have to take time off work to accommodate showing times to let every single potential buyer into their home, but they also have to handle purchase contract negotiations with potential buyers and their agents, fill in a residential sales contract (properly), coordinate a title company or law office to handle the closing, and spend additional money on signage, photography, advertising, and possibly even a listing service to enter it into the MLS for them. This list doesn’t even include the home inspection negotiations or meeting with vendors for repairs. It’s a good amount of work for a homeowner to take on (especially if they work full time, have small children, etc).

However, for the brave homeowners that DO decide to sell a home by owner, sadly the stats aren’t exactly in their favor: 

According to the most recent sales stats from the Pinellas County Property Appraiser, many 'For Sale By Owner' (aka FSBO) properties, sell for A LOT less money than those listed by a licensed Realtor. Case in point, over the past 12 months, the median single-family home listed for sale by owner in Pinellas County, FL, has sold for -27% LESS than the median single-family home sold with representation from a Licensed Florida Realtor with the listing in the MLS. See the chart below for more details:

Taking -27% less money for your home vs. using a Realtor is A LOT of money to leave behind at the closing table and far more than the commission a Realtor typically charges. These stats also do not include data about how many FSBO homes either never sell or end up listing with a Realtor after months of no success.

(We frequently get calls from distressed homeowners that have tried to sell on their own and now need our help after months of hard work on their end).

So in the end, even though homeowners believe that listing a home ‘For Sale By Owner’ may save them some money, it often ends up costing them more money and time than it would have to just list with an experienced local Realtor from the start. Additionally, homeowners will spend more of their time working to sell the home, and if it sits on the market for months and months, they’re also on the hook for additional mortgage payments, utilities, property taxes & more that accrue for every month that they continue to own the home.

But What About Homes Sold With "Limited Listing" Services?

A "limited listing service" is simply a company you pay to enter your home's info and photos into the MLS. Once the home is sold, the service also marks it as sold in the MLS as well. They often have copies of contracts homeowners can use, if needed, to get a home sold, but they offer NO other services to the homeowner to assist with the sale. This means they do not handle negotiations, repairs, or any other aspect of the sale. They are basically a data entry service for the MLS. 

We looked at the last 12 months of home sales in the MLS and compared sales of homes sold with full service Realtors and sales that were sold with a limited listing service. What we found is that the median home sold with a limited service company sold for -8% LESS than a home sold with a Realtor. The homes were also on the market for +34% more days than homes sold with a traditional real estate agent. So even in the case of selling a home with a limited service and access to the MLS, homeowners were still taking on the brunt of the work, while losing money and time. 

But What Does a Realtor Do For a Homeowner When They List a Home For Sale?

While we can't speak for all Realtors, the Sandy Hartmann Group goes above and beyond in many cases to get your home sold (just check our Google and Zillow Reviews). Here's just a few things we do for our clients to get their properties not just sold, but sold for TOP Dollar:

• We pay for and schedule professional quality photos to be taken so your home looks better than ever (no shadowed, dark, or blurry photos here!)

• We give advice on how to strategically stage your home so it looks appealing to buyers when they visit

• Your home is entered into the MLS and fed to over 800 other websites, including the international MLS, which allows foreign buyers to translate your listing into 19 different languages

• Homes over $750,000 are also featured on the Christie's International Real Estate website, targeting affluent buyers around the world

• We attend showings and/or provide sellers with an electronic lock box that records every entry into their home (these can ONLY be accessed by Licensed Realtors)

• We design and pay for dynamic print and digital advertising so your home gets the MOST views possible

• We pre-qualify buyers so your time isn't wasted with offers from unqualified individuals

• We also market your home to our database of thousands of past and current clients, who are looking for homes in our local market for themselves or someone else they know

• We draft the contract, handle price negotiations, obtain e-signatures, attend inspections, negotiate repairs and credits, coordinate closing, final walk-through's, check on loan approval status of buyers, insurance companies, and SO MUCH MORE

When it comes to selling your home, or as we'd like to call it, selling one of the biggest investments you'll ever make, it's important to get it right the 1st time. Use a local Realtor with a proven track record of successful sales, and let them handle the details so you can focus on your next move. 

As always, if you do decide you’d like to sell your home, you can always call the Sandy Hartmann Team for a free, no pressure home price analysis. As experienced Realtors, you can feel assured that we’ll always take the time to review our listing process with you, go over important timelines, explain our unmatched marketing strategies, and even give you a sale proceeds ‘estimate’ to ease any concerns you may have.

Get an INSTANT home price estimate now by clicking HERE...then call us at (727) 400-3315 to schedule an in-person analysis for the most accurate analysis of your home's value. You can also message us by clicking HERE.