Only 4% of homes were sold “For Sale By Owner” in New Jersey

This year, in New Jersey, ONLY 4% of homes were sold via “For Sale By Owner,”  according to the 2011 Profile of New Jersey Home Buyers and Sellers report.  What is more alarming is that 100% of FSBO’s admitted that they would work with a real estate agent next time.  Part of the 4% of For Sale By Owner closed transactions also included people they already knew.

For example a father selling his home to his daughter would account for a portion of this 4% statistic.

 

 

 

 

 

What is the Average “Sold Price”

In South Jersey, sellers are typically selling their home for 95% of the listing price, and 68% reported they reduced the asking price once, which is similar to national findings.  In studies conducted by the NAR, using a realtor increases your sale price by 32% on average! This of course, more than justifies a standard 6% commission earned by licensed real estate professionals.

Why is Using a Realtor Important?

Using a realtor is crucial to not only selling your home quickly, but also for top dollar.  Here is a quick list of why it is important to use a realtor when dealing with the purchase or sale of your home:

1. Most people will buy or sell their home from specific websites, such as the MLS or Realtor.com  Having your home listed in the MLS will increase your chances for a larger amount of buyers and therefore more offers.  It is a known fact.  The more people that see your home, the greater the chances for more appointments, and more offers. Over 80% of buyers are finding their homes online and directly contacting realtors.

2. A realtor is more familiar with negotiation, contracts, paperwork, inspections, mortgages, appointments, and other crucial parts of the transaction. They will make sure to take care of all of these elements since it is part of their everyday profession.

3.  Many people may be relocating.  Typically, these buyers will need to contact a South Jersey realtor in order to start the home search, become familiar with different communities and preview homes.  Relocation buyers are not calling “For Sale By Owners”

4. A realtor has connections.  You never know where your potential buyer can come from.  A realtor may have another realtor contact in Florida and the client gets passed to them.   They may have a mortgage contact that calls them up with a pre-approved buyer.  Also, they may have worked with another client in your neighborhood that calls them directly with a potential buyer.

5. Buyers tend to purchase from realtors.  They know and trust realtors, and feel comfortable working with them, knowing that the realtor will be unbiased.  Working directly with a seller can make them feel nervous or not fairly represented.

6. The type of person who is contacting a “For Sale by Owner” is typically an investor looking for a “good deal.” If it is not an investor, and it is a regular buyer, they will also be looking for a good deal.  They will most definitely offer way less then the 6% sales commission.

7. Most importantly, the owner of www.ForSaleByOwner.com had to use a realtor to sell his home last year! That right there, should say everything!

These are just a few quick reasons of why it is important to use a realtor.  There are of course, many other reasons!

 

 

About Jessica JessicaHoltzman

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