Isn’t it IronicÂ when the founder of a for-sale-by-owner (FSBO) website can’t sell his house and hires a Realtor to sell it instead?
It’s the kind of article that a real estate blogger can only dream of, only in this case the dream happens to be a reality. The founder of forsalebyowner.com listed his New York condominium as a FSBO for $2,000,000. It didn’t sell.
So he hired a Realtor to sell his property. The seller,Â Colby Sambrotto, ended up receiving a final sales price of $2,150,000. He paid his agent 6%, or $129,000.
So depending on how you look at it, the agent charged an exorbitant commission and delivered nothing of value, fleecing his client of tens of thousands of dollars.
He invested 6% in a smart, knowledgable, hardworking professional who knows the business of real estate. That investment of 6% paid of, because in addition to recouping his entire investment in the agent’s commission he received an additional $21,000 dollars in profit than if he was able to sell his house at the original asking price of $2,000,000. Which he wasn’t.
So does a real estate agent bring value to the process, or are we parasitic leaches that are sucking the money out of your wallet while throwing back martini’s at the country club? I’m sure it won’t come as any surprise to you when I suggest that a competent, professional real estate expert adds value to the home sale process. Research conducted for the 2010 NAR Profile of Home Buyers & Sellers found that the median selling price of an open-market FSBO home was $140,000, while the median price for all agent-assisted sales was $199,300Â (some of this delta may be explained by individuals who own less expensive homes being more likely to go the FSBO route).
But don’t take my word for it, take it from the guy who founded forsalebyowner.com!
Tip of the hat to agentgenius, where I originally found the news.