Realtors are more experienced to sell home than owner

Q: Compared to a few years ago, I don't see as many signs and ads around town for self-service firms that help you sell your own home. I also don't see as many For Sale by Owner signs as I remember seeing in the past. Is it just my imagination, or are fewer people trying to sell their own home? If so, why is that? -- Charles J., Las Vegas

A: You're not imagining things. I think you've actually spotted a trend.

Research backs up your perception that fewer homeowners are choosing to try to sell their own homes these days. Instead, more people are choosing to work with a Realtor.

According to the National Association of Realtor 2009 Profile of Home Buyers and Sellers, for-sale-by-owner (or FSBO) transactions last year dropped to a record low of 11 percent of all U.S. housing sales.

That number is even more telling when you consider that in almost half of those FSBO sales, the NAR report showed that homeowners sold their home to someone they already knew.

I've noticed a similar trend here in Southern Nevada these past few years. I see several reasons for this. For starters, it's not easy to sell a typical owner-occupied home, especially in our current local housing market where banks are the dominant sellers.

Secondly, I think more homeowners see that market conditions are changing constantly and that real estate transactions are becoming more complicated. Now more than ever, I think sellers are realizing that it pays to seek professional help.

In 2009, according to the NAR study, a typical property sold without professional assistance sold for $172,000. That compared to a sales price of $215,000 for the typical agent-assisted property.

By working with a professional, sellers are more likely to generate competitive bids and get the best possible price for their home.

As president of the Greater Las Vegas Association of Realtors, I have an obvious point of view on this topic. But I think these statistics showing a declining percentage of FSBO transactions show that consumers see value in working with experienced, educated and ethical real estate agents.

After all, today's sellers are competing not only with other homeowners trying to sell their properties, but also with all the bank-owned and distressed properties on the market in Southern Nevada – where we still have one of the nation's highest foreclosure rates.

Besides a lack of experience selling homes, unrepresented sellers are generally at a huge disadvantage when it comes to marketing their home. NAR's report revealed that more than half of all sellers who did not work with a real estate agent failed to actively promote their homes to potential buyers.

Those who did promote their properties in some way relied primarily on basic methods with limited exposure, such as yard signs, word of mouth and occasional newspaper ads.

I don't discount these marketing methods. But there's more to it than that.

The fact is that most buyers are now looking online, with national studies showing that nearly nine out of 10 recent buyers used the Internet to find a home.

Do-it-yourself sellers generally don't have access to major online marketing tools like realtor.com and other Web sites with large pools of listings to lure potential homebuyers.

Sure, there are sites out there that cater to unrepresented sellers. But their total listings are in the tens of thousands, compared to more than 4 million homes showcased on realtor.com.

As I tell clients, Realtors have specific knowledge of local markets and know what matters to buyers in your area. The good ones sell hundreds, if not thousands, of homes during their careers, compared to the average person who may only move a handful of times during their lifetime.

For more information about such issues or about the GLVAR, consult a qualified local Realtor or visit lasvegasrealtor.com.

Rick Shelton is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for 20 years. GLVAR has 12,500 members. To ask him a question, e-mail him at ask@glvar.org. For more information, visit lasvegasrealtor.com. Questions may be edited for space and clarity.