Is The Baton Rouge FSBO (For Sale By Owner) Market In Decline?
http://gbrprelistingappraisals.com/ - Is The Greater Baton Rouge FSBO Market In Decline?
There’s a new study out by the National Association of Realtors that states FSBOs are in decline. The study was sponsored by the same organization that is opposed to the FSBO market, so read with an open mind. This home appraiser isn’t agreeing or disagreeing with the findings, just informing the public that this study has been released. I do know that the local www.fsbobr.com site has been vibrant for years now and a good service to our local market. While I don’t know what the local percentage of sellers electing FSBO is, it seems to have been “rising”, not “declining” based on the number of FSBO Purchase Agreements I see across my desk and my conversation with 2 local agents.
The NAR FSBO Study can be found here in pdf format. This appraiser has followed the NAR Copyright Policy in providing this information to the public.
From Lawrence Yun, NAR Chief Economist:
“FSBO homes sell for $36,000 less than agent assisted sales and FSBO market share has been tumbling. The desperate FSBO sales are now listed with deep discounts, which draw some bargain hunters. Because FSBOs often start out at a very low price, they do little to negotiate down from the already low “listed” price.
I expect the next survey will show similar conditions and even a further fall in FSBO market share. Short-sales and foreclosures are rising in the MLSs and these sales by nature would not be FSBOs. The few remaining FSBOs will be deeply discounting to attract buyers.
My staff has written an article about the falling FSBO market share and the much lower price attainment in relation to agent assisted homes. It is now available at: the link below: http://www.realtor.org/research/commentary_falling_fsbo“
Greater Baton Rouge Home Appraiser Offers Pre-Listing Appraisals
Also, to be on the safer side, it would be a wise decision to have a third-party measure the living area and value of the property before one signs the Listing Agreement. A residential appraiser is the best option in this case.
· When an appraisal report is done in a professional manner, it leaves a good impression on the potential buyer as it supports the price quoted as well.
· An appraisal generally includes photographs, location map, accurate sketch, precise dimensions, outline of the neighborhood etc. Also, 3 to 4 comparable sales must be present adjusted to subject property.
· Enlisting recommendations for repair or enhancements, if any. This listing appraisal can indicate a value for addition(s), items that require repairs, etc..
· Accurate estimation of Living-Area size lends peace of mind, especially with values @ $100/sf +
Consider: A 2,000sf home is for sale, priced at $240,000. Instead of measuring the home, the living area was obtained by County Records; estimating the typical home size in that development. The home is listed with a living area of 2,000sf. A purchase agreement for $240,000 is received and is accepted. The appraisal is ordered by the buyer’s lender. The sellers submit an offer on a $350,000 home in a neighboring development. The offer is accepted. However, the appraiser for the home turns in her appraisal showing 1,840sf and an appraised value of $220,800, much less than the purchase price. The sellers are asked to renegotiate the purchase price as the living area is 1,840sf, and not the 2,000sf. The sellers sue for misrepresentation of living area.
Thus, it’s crucial to have one’s home measured by the person listing your home. It is strongly recommended that when interviewing the person listing your home, one must confirm that they follow ANSI, that they will measure your home, and provide you a calculated sketch. Thus, a written verification of true living area is present.
An appraisal helps homeowners make the best decisions like investment in homes and setting a competent sales price. Thus it is strongly recommended to have a Listing Appraisal before one lists their home.
William D. Cobb, CREA, with Accurate Valuations Group has operated as a home appraiser for 16 years primarily in the Greater Baton Rouge, Louisiana market. For more information on William D. Cobb, CREA and Accurate Valuations Group, visit: http://www.batonrougehomeappraisals.com . Also, visit William D. Cobb’s Video Blog @ http://batonrougerealestateappraisers.com .
