Results in Lower Sales Prices.
Homes that are sold directly by their owner usually sell for lower prices than those sold by a real estate agency. While this is beneficial for the buyer, it is a negative aspect for the seller. Although the seller does not have to pay agent fees when acting independently, they still make less off of the sale than they would have, had they listed through an agency. According to the National Association of Realtors 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000. One main reason this occurs is because some buying agents stray from working with homes being sold by the owner, which results in fewer bids on the property. Additionally, professional real estate agents are experienced negotiators AND marketers. They are trained to communicate and mediate. They also have access to more online and offline marketing tools, giving them access to more information about property values and comparables, as well as a wider audience of potential buyers.