Yes, that’s right. According to NAR, FSBO sales represent just 7% of all home sales. That’s before the government stepped in to tell agents how to market their services. Some expect this percentage to increase slightly based upon the market changes but this percentage has been holding steady for decades.
Some owners start out by listing on their own or with the help of companies that provide supplies to assist. Most who start out listing FSBO contact a real estate agent who takes over and sells the house. The main reason for discussing FSBO is because the discussion to have sellers and buyers sign contracts for the purchase or sale of their homes is similar to FSBO. So what is similar? Any agent who has met with a person who is trying to sell their own home knows the arguments that the seller makes for that decision.
It is entirely possible that buyers and sellers will raise these issues because the new mandated contract documents and process will often prompt the prospective client to ask the same questions.
Percentage Increase = (Increased Amount / Original Amount) * 100
In this case:
- Increased Amount = $418,000 – $320,000 = $98,000
- Original Amount = $320,000
So, the percentage increase is:
Percentage Increase = ($98,000 / $320,000) * 100 = 30.63%
Therefore, selling the house through a real estate agent in this scenario results in a 30.63% increase in the selling price compared to selling it by the owner (FSBO).
30% increase in income when a Real Estate Agent assists a seller.
Use this percent as a general rule when calculating the increase in value that a seller could expect when they decide to work with a professional real estate agent. Now it’s time to calculate your deal below. If you enter your email address a copy will go to you and if you want to email a client or other party just enter their email address. Remember you will be entering a value for what you believe you can sell the property for and what the owner would sell as FSBO. The percentage spread should be about 30% in your favor based on NAR data.