Are you thinking about selling your home without an agent in New York City?
If so, you are probably curious what the FSBO success rate is in NYC.
The For Sale by Owner success rate in NYC varies dramatically depending on how you are approaching the home sale process.
Are you going it completely alone and listing your home For Sale By Owner on Zillow and StreetEasy?
Or are you listing it via an Agent Managed FSBO for a flat-fee or using a 1% discount full service listing option?
In this Hauseit tutorial, we compare the success rate of three different zero
or reduced commission models for selling in NYC. They are:
Traditional For Sale by Owner
Hauseit’s Agent Managed FSBO Service
Hauseit’s 1% Discount Full Service Listing Option
So, what’s the success rate for traditional FSBO sellers in NYC?
The success rate for traditional FSBO sellers in NYC is absolutely abysmal.
This is due to a combination of factors, primarily because FSBO sellers lose confidence in their ability
to properly market the home and succumb to broker solicitation and harassment until they full-commission listing agent.
The traditional FSBO seller neglects the vast majority of home buyers who are represented by agents.
In NYC, there are approximately 5,000 real estate transactions closed per year.
90% of those transactions are done between two agents (buyer and seller).
As a result, traditional FSBO home sellers miss out on up to 90% of all home buyer traffic.
By this metric, only 10% of home sales in NYC succeed in having less than two agents involved.
However, you must factor in the percentage of cases where the listing agent sells a home to a buyer who chooses to remain unrepresented.
After accounting for this scenario, we estimate less than 1% of all home sales are successfully sold FSBO in New York City.
Now, what’s the success Rate in NYC for sellers who choose Hauseit’s Agent Managed FSBO option?
An agent managed FSBO listing will have a success rate equal to a traditional for sale by agent listing
assuming the home seller doesn’t fall prey to one of the top 3 mistakes and reasons why NYC FSBO sellers fail.
These mistakes include having an unrealistic listing price, not investing in professional photos,
or losing confidence in the face of broker solicitation and harassment.
Some of you may be asking, what exactly is Hauseit’s Agent Managed FSBO option?
Hauseit’s agent-managed FSBO option is designed to help NYC For Sale by Owner sellers get full exposure
to both unrepresented and represented buyers while also maintaining full control of the sale process,
minimizing broker harassment and reducing or fully eliminating broker commissions.
NYC FSBO sellers who use Hauseit’s agent-managed FSBO option have their home listed in RLS (New York City’s MLS equivalent)
and many other real estate search websites such as StreetEasy, Zillow, Trulia and Brownstoner by a reputable, full-service REBNY Member Firm.
Under this arrangement, sellers are responsible for any private showings and much of the coordination, scheduling and negotiation.
One major benefit of the agent-managed FSBO option is that the amount of broker harassment
and solicitation you’d be subjected to is greatly reduced.
Assuming you understand and avoid the top three reasons why NYC FSBO sellers fail,
then the Hauseit agent-managed FSBO success rate should be equal to that of a traditional agent listing.
Now, what’s the Success Rate in NYC for sellers who choose Hauseit’s 1% discount full service listing option?
The success rate for a 1% full service listing via Hauseit is equivalent to a traditional for sale by agent listing
because you will be listed by a full service New York City broker.
The only difference will be the lower rate of commission paid to the listing agent
of 1% vs. 6% under an traditional exclusive right to sell listing agreement.
Hauseit’s 1% discount full service listing option is the only way to completely avoid broker solicitation,
as you will have a full service agent conducting all showings, handling all inquiries and negotiations on your behalf.
Your full service agent would be from a reputable REBNY Member Firm with good relationships with the wider broker community.
So, what exactly is Hauseit’s 1% discount full service listing option?
Hauseit offers a 'traditional' full-service listing service for a very untraditional commission of 1%
for busy home sellers who don't have the time to go the FSBO route but still want to save.
Even though commission savings are readily available to the motivated FSBO seller equipped with time,
education and patience, we fully realize that many sellers are primarily short on time and also (sometimes) short on patience.
However, being short on time does not preclude you from substantial savings when selling your home.
Hauseit’s agent managed listing option offers all of the conveniences you would expect
from a ‘full service’ agent but without that stunningly high 6% commission.
To recap, why are FSBO success rates so low in New York City?
FSBO success rates for people who attempt the traditional for sale by owner route are low primarily
because they lose confidence and lack basic knowledge about the home sale process in NYC.
Many FSBO sellers are poised for failure from day one for reasons such as an out of touch listing price or amateur photos.
But even if a traditional FSBO seller is perfectly managing the sale process, he or she will still be highly vulnerable
to the solicitation and harassment of traditional agents who make a living converting FSBO sellers into full-commission clients.
In addition, traditional FSBO listings don’t get seen by the 75% of buyers represented by agents.
By working with Hauseit, New York City home sellers can fully eliminate
or massively reduce broker commissions while also maximizing their chances of success.