The average cost of selling without a Realtor in 2005 was $31,800.
We've all seen the signs driving around town. The brokers have their signs in yards advertising homes for sale and individual, unrepresented sellers have their signs; typically red and white with, hopefully, legible phone numbers. The motivation for selling a home by oneself is pretty easy to divine: folks believe that they will save money on their real estate transaction.
The National Association of Realtors does a study once a year called the Profile of Home Buyers and Sellers. It is their report on the previous year's real estate activity. This recent article on their blog makes note of the decline of unrepresented sellers from 18% of the market in 2001 to 13% in 2005 and points to the value of enlisting the services of a Realtor in the sales process. Realtors assist sellers in gaining an average of 16% more for their homes than if the seller tried to market and sell it themselves.
Aside from dealing with
buyers lookers that are trying to get a great deal on steal a home, unrepresented sellers also need to be aware of the myriad of local and state regulations necessary for every real estate transaction. In the end, one slip up by the unrepresented seller could land them in hot water and cost thousands of dollars to mitigate.
Save on commissions, put more money in my pocket, but expose myself to huge liability.
Have a Realtor assume the responsibility and liability, utilize their marketing, sales and negotiating skills and gain 16% more on the sale of my home.
[Cross posted at Let's Talk Michigan Real Estate]