On occasion, you’ll see a home with a sign in front that reads “For Sale By Owner.” Months later, you may still see that same sign. One of the reasons this is the case is because the only people that know about it is you, and whomever drives by. These properties are not listed on the MLS, which is the number one source that REALTORS® use to locate properties for their clients. As a result, less than 2% of the homes that are up “For Sale By Owner” do not actually sell, and if they do sell, they sell for 15% less than they would if a REALTOR® is involved, and that’s far greater than the cost of hiring an experienced REALTOR® to market your home.
Every morning I walk from my humble little town house in Chateau De Vie Six down Granite Reef, towards Chaparral Park, around the lake, and back. It’s a very refreshing, very peaceful 3 mile loop. Every day I see the same “For Sale By Owner” sign, by appointment only, directly across the street from Chateau De Vie Six, and every day I wonder how well it’s working. Actually, I know how well it’s working because the house is still for sale.
Today, I thought I’d check the info tube again to see if the owner had replenished any of the flyers that I have previously looked for, but never found. To my surprise, there was information about the property, along with the asking price. $209,000.00 or best offer.
Just so you know that I’m not typing incorrectly, I’ll put that number up again. $209,000.00, or best offer. Let’s take a look at what the best offer should be.
The subdivision that this property is located in is Park Scottsdale, which wraps around the back side of the Park Scottsdale apartments, which have been converted from apartments to condos, all the way behind the Basha’s shopping center, to McDonald.
There are roughly 146 properties in this sub-division. Currently, only 2 of them are listed for sale on the Arizona MLS. One is currently pending sale, and over the past 9 years, 109 of these properties have changed hands through sales where a REALTOR was involved in the transaction.
The current average asking price in this subdivision is $130,750.00 which is a mere $107.00 per square foot on average. The most recent sale was a 4 bedroom unit with 2 1/2 baths, 1584 square feet, and it occurred in October of 2008. It sold for $164,900.00, or roughly 22% less than the current featured For Sale by Owner, which I may add is on Granite Reef. Homes located on busy streets typically bring about 14% less than the same homes nested in a quieter area of a subdivision.
It will take a miracle to sell a town home on a busy street for 22% more than competition that has professional representation. Since FSBO properties bring 16% less than competing properties that are listed by REALTORS in the first place, the chances of this property selling to a private buyer from a private owner are probably less than the average of 2%.
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