Selling FSBO? Do Not Make This $38,000 Mistake!

by benborden

First off I want to stress that I am not a licensed Real Estate Agent nor am I a licensed Appraiser but I want to take a quick view at the 3 most recent home sales in a neighborhood in Midlothian, VA. I just could not resist posting this as its such a glaring example of hiring a professional not only for real estate but hiring a professional in any field. Its so much cheaper in the long run.

There were three recent home sales in the Lenox Forest Section of Riverdowns. Two of the sales were full service listed homes and one was For Sale by Owner. Riverdowns subdivision is located off Robious Rd. in Midlothian, VA about a .5 mile east of Rt 288.

Its divided into 3 sections, Lenox Forest, Kings Farm and Queens Grant. Riverdowns is arguably one of the most sought after neighborhoods in Area 64 next to Founders Bridge and Tarrington. The schools are second to none in Chesterfield County with Betty Weaver, Robious Middle and James River High. My point being Riverdowns homes sell fairly easily.

The three Lenox Forest home sales sold through October 2007 and December 2007. The For Sale By Owner was originally on the market in 2006 for at least six months without selling and put back on the market in 2007 with a discounted $299 Realtor. So I would estimate the total selling time at a year, give or take a month or two.

The FSBO (For Sale By Owner) home was around 3,800 sq ft compared to the other two being around 3,450 sq ft average. So the FSBO was 350 sq ft bigger. All three were basically the same, brick fronts, .5 acre lots, granite counter tops, finished 3rd floors, 2 car garages etc.

The Days on Market for the full service listed homes were far shorter. One full service listed sold in 34 days and the other full service listed sold in 1o4 days. Now the FSBO once what I call 1/2 listed the second time sold in 94 days.

Looking at the full service listings both averaged selling at $145.78 per sq ft. Remember all 3 homes are basically the same, lot sizes, amenities and interiors; None superior to the other. The For Sale by Owner sold for $131.58 per sq ft. the listed homes sold for $145.78. An argument can be made that that this FSBO would have cut his listing time by 9 months, had much less headaches and actually made $38,960 more AFTER real estate commissions.

What I really thought was funny was he wrote I AM SOLD over his FSBO sign like he had just accomplished some amazing feat selling without utilizing a Full Service Real Estate Agent. Well I take that back, he actually did accomplish something amazing….He lost $38,000 dollars.

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