Last week, The Rhode Island Association of Realtors released their 2008 year end statistics, they reported 6,648 single-family sales through the MLS , and the Warren Group, which tracks all sales, not just MLS transactions, puts that figure at 6,761 sales, a difference of only 113 properties. Of those sales, 40% would be transactions between family members and friends, the rest would be arms-length "for sale by owner" transactions on the open market. This statistic come as no surprise to me, it is hard enough for Realtors to market homes in this economy, it has to be almost impossible to do it yourself. Good Realtors aggressively market properties from the first day the home is put on the market. Since more than 80% of all homebuyers begin their search on the internet, a large web presence through multiple portals, utilizing SEO, and actively prospecting and looking for buyers is how you get a home sold today. Here are some more reasons why unrepresented sellers short change themselves:
- Potential buyers spend less time in a home if the owner is present. They often feel uncomfortable discussing their opinions of the property if the owner is present and are less inclined to make offers if they know they'll be negotiating directly with the seller.
- The average home sold by their owner sells at prices 20 percent lower than homes sold by REALTORS. Since cost is a primary reason most consumers try to sell their homes themselves, they often take on that additional risk and work, while actually decreasing profit.
- As an unrepresented seller, you have no way of qualifying that buyer. Credit is hard even for qualified buyers, you want to be able to know your buyer will be able to come to the closing table with cash in hand.
