Advantage to sellers to use a Realtor

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Real Estate Agent with Friestad Realty
I read an interesting blog today on how NAR is misleading the public by using statistics that are based on median rather than mean (average).  As I read some of the replies, I got the feeling that many people believed the auther.  The claim pretty much stated that NAR misleads the public to believe using a realtor is beneficial to receiving a higher selling price.   I have not yet researched to find the statistics that NAR uses or posts, if anyone has a link, I'd be appreciative for the time you'll save me.  I have an opinion on the importance of using a real estate agent versus selling "For sale by owner".  I do believe there is an advantage to sellers to use an agent.  I work mostly with buyers and I listen to them.  I've never said no if they asked to see a FSBO.  None of my clients have bought a FSBO.  They just don't feel comfortable.  They like knowing that professionals who are governed by the state have a legal responsibility.  One thing FSBO overlook when they consider selling their home on their own is the trust that an agent and their client share.  Here's an analogy for thought.  When we go to the doctor, his doctorate comforts us and eases our concerns.  Then there's the unlicensed phony doctor who secretly performs procedures at a substantially reduced cost.  This "doctor" doesn't bring peace but a sense of doubt to the patient.  Buyers are like patients and sellers are like the shady doctor and licensed real estate agents are like the professionally trained and licensed doctor.  FSBO under estimate the peace real estate agents bring to the transaction.  Buyers hire agents for a reason.  I've heard many times from my clients how thankful they were that they had me respresenting their interests.  I feel bad when I hear of agents who only work for a buck and see clients as a means.  There are plenty of agents who are professional and care about their image and the image of the industry.  Back to my point, real estate agents sell homes for a higher price than FSBO can receive because as the "value" of a home is considered, the real estate agent can prove value and the FSBO must convince value.  Buyers are skeptical of FSBO so low offers compensate for that!  That there is a huge advantage a seller will gain when employing a licensed, well trained, professional real estate agent.
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Tags:
for sale by owner
fsbo
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value of home
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realtor
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why use an agent

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Rainer
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Bart Whitmore
Keller Williams- Louisville - Louisville, KY
Real Estate Agent
Kerry, I cant point to any stats, maybe someone else can, I do know that one big advantage I have over any fsbo in my area is that I have 4500 other Realtors who can help me sell a listing.
Apr 24, 2008 06:08 PM #1
Rainmaker
563,876
Mike Saunders
Lanier Partners - Athens, GA

I don't know the stats that are being referred to, but most people use whichever will better support their point.

 

If you are math savvy (well, mean vs average savvy) skip the following paragraphs.

 Just remember that "the mean" (or median) is the exact middle of the pack, group, whatever. In the case of home sales, on half of the houses sold for more, one half for less. If the majority of FSBO sales placed below the mean and the majority of realtor sales placed above the mean, NAR might be correct.

Average sales price can be even more misleading than mean. If, in a zip code, 11 homes sold in a month, for a total of $2,200,000 dollars, the average sale price is $200,000. However, if one sold for $1,100,000.00 that means, while the average of all eleven homes was $200,000.00, the average of the 10 that did not sell for $1.1 million is only $110,000.00.

 Average makes sense when giving someone a grade for a semester, or year, or a coures.

 Mean makes sense when trying to show things like incomes, or home prices.

 

 

Apr 24, 2008 06:39 PM #2
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Rainer
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Kerry Friestad

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