According to a recent report, various facts came out regarding FSBO or For Sale By Owner homes versus those homes sold using a Realtor. Figures from 1991-2012.   

• The share of home sellers who sold their home without the assistance of a real estate agent was 9 percent. One-third of those sellers knew the buyer prior to home purchase.
• The primary reason that sellers choose to sell their home without the assistance of a real estate agent to a buyer they did not know was that they did not want to pay a fee or commission (43 percent).
• One-third of FSBO sellers took no action to market their home, and 60 percent did not offer any incentives to attract buyers.
• The typical FSBO home sold for $174,900 compared to $210,000 among agent-assisted home sales.

• For more information on the annual Profile of Home Buyers and Sellers, click here. The 2013 report will be released next Monday, November 4.

What I think is useful is to point out above all, I have never brought a Buyer to a FSBO where the Seller did not advertise and pay 3% of the sales price in a commission.  The thought that I hear uttered by some that through selling FSBO versus a Realtor they get around "paying 6-7% in commission to a Realtor" is not really the reality. It may be their goal, but in reality 3% is paid out anyway or Buyer's agents would have no motivation to show a FSBO.  We are therefore only talking about that 3% difference for a listing broker.  Is it worth it?  I would say so based upon this data.  

If by a Realtor's expertise, non-emotional negotiating ability, and knack for working a deal the average sales price was about 18-20% higher than that of a FSBO sales price then paying that 3% to a listing broker is a no brainer!  What is interesting is that most FSBO's that I have worked with as a Buyer's Agent were found by a flyer in the flyer box at the street. Not the internet. Not through some detailed online marketing campaign. Not through dozens of high resolution photos or video.  My point being, I have worked as an Accredited Buyer's Representative for years. Over those years I might have had only a handful of buyers approach me with a FSBO. Why? Because they are not found easily!  What do most of my Buyers end up with? Homes that are in MLS.  Sure you can pay $500 to put some photos in MLS and get absolutely no service out of a few deep discount brokers, but again, is it worth it if you are the one negotiating the deal? Sure, you may be a negotiating wizard, but negotiating your own home sale in an emotional environment is like operating as a surgeon on a family member. It isn't as easy as it seems when representing yourself, and if you are negotiating that deal with a Buyer's agent who does this every day, who might have the upper hand? That Buyer's agent is not looking out for the Seller but for their Buyer's best interests!

Recently I took over a FSBO for a friend of the family.  He had been "marketing the house" for two (2) years by putting a sign out front that said FSBO and had his number on it.  I took it over, we had a contract in 3 weeks and closed within 45 days at 97% of asking price.  He was tickled to say the least!  Wrote me rave reviews online.  I ask what was better, him paying a Realtor an additional 2.5-3% over what he would have paid a buyer's agent anyway to stop the mortgage payment he was paying or have it sit there for another several months? If he had hired a Realtor a year before would that savings in making that mortgage payment to get it sold have made a difference to his overall financial situation? Sure it would.  Oh and we got him a sales price that was almost $5,000 higher than he was asking net of  total sales commission. 

A few years ago when my taxes were easier I used to get software online to do them myself. When they got more complex I went and interviewed a CPA. I was amazed at how my perception of  tax law and how to complete my taxes was different than the CPA's real life training and experience.  I mean I graduated from college so I can handle a computer tax program, but even the program or doing it online was not nearly as correct as putting her knowledge to work.  I find this in real estate as well!  I found that tax guidelines on the software were not as current and my unique situation made using a standard software out of the box do it myself approach less beneficial than using a CPA! I found that paying her was worth every penny! She saved me money, headache, liability, etc... because my situation was uniquely different being self employed.  I dare say that all sellers also have unique situations when it comes to housing and selling their homes just as well!  Putting experts to work for us in no matter what the field is always a good idea.  Just make sure you do your research to find the right one!  Not all CPA's are created equal and not all Realtors are created equal either!