What I was able to find to answer this question was a study entitled, “The 2007 National Association of Realtors® Profile of Home Buyers and Sellers” where according to the NAR, an eight-page questionnaire was mailed in August 2007 to a national sample of 150,000 home buyers and sellers who purchased their homes between July 2006 and June 2007, according to county records. It generated 9,966 usable responses; the adjusted response rate was 6.9 percent. All information is characteristic of the 12-month period ending in June 2007 with the exception of income data, which are for 2006.

What they found was that 8 in 10 sellers said their agent reviewed sales contracts and purchase offers, managed paperwork and contracts, negotiated with buyers and scheduled showings. 75% worked with their agent in determining the asking price, and said their agents coordinated home inspections and appraisals.

The report also found that the level of for-sale-by-owner transactions remains at a record-low market share of 12 percent, the same as in 2006. The level of FSBOs has declined since reaching a cyclical peak of 18 percent in 1997.

The research notes that 4 out of 10 FSBO properties were not placed on the open market as these 39% were “closely held” between parties who knew each other in advance, such as family or acquaintances.

The NAR went on to say that by factoring out properties that were not placed on the open market, the actual number of FSBOs is 7 percent – the rest are unrepresented sellers in private transactions. This is down from 10 percent sold on the open market in 2004.

Now here is the meat of the report. “The median home price for sellers who used an agent was $240,000 vs. $180,000 for a home sold directly by an owner, but there were significant differences between the two. The median price for transactions between parties that knew each other in advance was noticeably lower than those sold on the open market. The median price of an open-market FSBO was $208,000 vs. $142,400 for closely held transactions.” So even with a sales commission or marketing fee of 6% (just to note, not all properties are priced with a 6% marketing fee) the average seller with the aid of a Realtor would have netted $225,600 which is still $17,600 more than the FSBO assuming an open-market transaction net of $208,000.

Truth: Pricing too high can be as bad as pricing too low. If you list too high, you’ll miss out on buyers looking in the price range where your home should be. Offers may not even come in, because buyers who are interested in your home are scared off by the price and won’t even take the time to look at it. By the time you correct the price and list your home at its fair market value, you will have lost that window of opportunity when your home draws the most attention from the public and real estate agents; i.e. the first 30 days that it is on the market. A well-trained real estate agent who looks out for your best interests will consult with you on your home’s fair market value and different pricing strategies for the current market.

Myth #2: Minor repairs can wait until later. There are more important things to be done.

Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale. Most buyers are looking for homes that are ready for them to move into. If your home happens to attract a buyer who is willing to make repairs, he/she will begin asking for repair allowances that come out of your asking price. The amount of an allowance that you have to offer a buyer is usually more than what it would cost for you to make the repair (or hire someone to make the repair). Remember, buyers are comparing your home to other homes that are currently on the market. Your home should be inviting so that everyone who looks at it can see themselves living there.

Myth #3: Once a potential buyer sees the inside of your home, curb appeal won’t matter.

Truth: Buyers probably won’t make it to the inside of the home if the outside of your home does not appeal to them. Buyers and their agents often do drive-bys before deciding whether a home is worth their time to look inside. Your home’s exterior must make a good first impression so that buyers are compelled to stop and come inside. All it takes is keeping the lawn mowed, shrubs and trees trimmed, gardens weeded and edged, and clutter put away.

Myth #4: Your home must be every home buyer’s dream home.

Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house. There is a point where improving your home doesn’t pay off. The key is to consider what competing properties feature and look like. A highly-motivated real estate agent will consult with you on what competing properties have to offer – he/she can even show you competing properties so that you can make sound home improvement decisions.

Myth #5: You are better off selling your home on your own and saving money on the commission you would have paid to a real estate agent.

Truth: Statistically, many sellers who attempt to sell their homes on their own cannot consummate the sale without the service of a real estate agent. Homeowners who succeed in selling their home by themselves usually net less than if they had a real estate agent working for them. The National Association of REALTORSâ surveys consumers every year, including homeowners who succeeded in selling their home without a real estate agent. Over 70% of these homeowners say that they would never do it again.

Myth #6: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.

Truth: You should reply immediately to an offer! When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don’t want to lose the sale because you have stalled in replying.

CAMP 4:4:3 Tool Kit ed1-rev1 © 2005 Keller Williams ® Realty, Inc.