Www.ForSalebyOwner.com states, “According to the National Association of Realtors, for sale by owner sellers not only sell faster, but they usually get closer to their asking price.”

Misleading? Yes. They do sell faster but that is because they are severely under priced. And they do sell closer to their asking price as well but again it is because their price is significantly below market. In 2010, the median sale price through a Realtor was $200k for new and existing homes. The comparable for sale by owner (FSBO) price was $140k. Avoiding paying a commission results in a sales price that is 30 percent lower. Yikes!

The ForSaleByOwner.com site also stated, “Despite what an agent might tell you, selling your home isn’t difficult with ForSaleByOwner.com there to help you along the way.”

Many FSBO properties eventually do list with a Realtor in order to sell their property. Unfortunately, the properties are “shop worn and stale” and go ignored by buyers. Still, Realtors will obtain a better price than the FSBO would have. The median price of a property that was attempted to be sold FSBO, but ended up going with a Realtor is $168k…a lot less than the $200k that could have been obtained if the seller had initially listed with a Realtor.

So what is the number one reason a seller chooses to go FSBO? They did not want to pay a commission. And lets assume an agent’s commission is 6%. So even with that, a seller stands to make 24% if they go with an agent. Sounds pretty good to me and I’m not biased at all.

(The information contained here was provided by the Portland Metropolitan Association of Realtors)