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Why 'For Sale by Owner' may not pay off

Posted by The Aramco Group on Sun, May 6, 2018 @ 14:05 PM

According to the National Association of Realtors 2017 Profile of Home Buyers and Sellers, a whopping 89% of people selling their home were assisted by a real estate agent. But what about the rest? While some are unknown, NAR reports that just eight percent of sellers sought to go-it-alone without the help of a real estate professional.

Although some owners may choose not to work with an agent in the selling process to save on realtor commissions, NAR data shows that it may cost them in other ways. The typical home put on the market without an agent sold for $39,000 less on average than agent-assisted home sales.

In a poll, 12 percent of sellers found difficulty in understanding and performing the paperwork and 13 percent cite trouble in selling within a preplanned length of time. Alternatively, using an agent can offer widespread exposure for a listing and allows homeowners to leave the haggling and paperwork to a pro.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article