sounds great! Pay no commission on the sale of
my home by doing it myself. I could save a lot
of money.” Let’s research a bit deeper
into the facts and then let you decide for yourself. What is involved with
selling your home? Putting a sign in the front
yard and waiting? Maybe. In rare markets
like California’s 2003-2005 volcanic home pricing surge, there seemed
to be an endless array of rabid homebuyers throwing the value of logic to the
As we know by reading the local newspapers that has ended. At that time a property
could receive multiple offers within minutes or hours of going public. In today’s
market, properties listed by an agent can stay active for up to six months
(shorter if aggressively marketed). With For Sale By Owners, they sit for much
if they sell at all. FACT: 8 out of 10 FSBO’s eventually
choose to list their home with a Real Estate professional because the agent
can sell it quicker
and net the seller more money at the time of close. Guess what,
the selling price is not the only factor when it comes to your profit. The
sellers net is what
really matters, it spells money in your pocket at the end of the day.
I am going to give you five reasons why you are at a disadvantage when trying
to sell your home alone:
1. Serious Buyers shop FSBO’s to save money. When buyers are dealing with
FSBO’s they know that they can lowball offers. They feel that the seller
is already not paying 6% in broker fees; so right away they can reduce you to
6% less than your asking price. If you accept that offer you have immediately
lost the money that you perceived to be saving by not using an agent. The worst
part of this is that you, the seller, ends up doing all of the work alone.
2. Third party negotiating saves money. You may have emotions involved with
the sale of your home such as, I need to sell by a certain date, or, if I don’t
accept this offer there may not be another as good to come along. After doing
everything on your own you may feel that ”I am too tired to continue dealing
with this.” Because there is a lot of time and energy used during the sale
of real property.
Fact: For Sale By Owner properties sell for 12% less than agent involved
property transactions nationwide. At that rate you could have employed the marketing,
connections, knowledge, and negotiating skills of four Real Estate professionals
and still netted the same amount of money in your pocket at the time of close.
I suggest only using two agents and keeping the other 6% as a bonus to yourself
for saving so much time and work.
3. The Law of Supply and Demand. It’s simple, the more property available
on the market, the slower they are to sell. This is especially true without the
proper exposure and marketing techniques. The longer a home takes to sell, the
more money a seller stands to lose. Interest rates may go up making it harder
to qualify buyers, loan costs may go up, new homes may cost more, and your home
may be worth less.
4. Marketing- exposure, prospects, value. An agent has a wide range of tools
at their disposal. A website, the MLS, previous and present clients, signs,
a lockbox, and ties to the Real Estate community can all be invaluable to the
of your home. Without these tools you are alone, and may not receive what the
property is worth in True Market Value.
5. Difficulty of separating lookers from buyers. Ask any Real Estate Professional
what the most time consuming mistake of their first two years of business was,
and this subject will arise. For agents it is our job to help people with their
Real Estate problem. If we spend a weekend or two, or three showing property
to potential buyers and nothing comes of it, we can write it off as part of
the job. As an FSBO I assume that you have your own career and possibly a family,
and enjoy your free time. Wasting time entertaining lookers who are just curious
or are not pre-qualified can be frustrating. Real Estate professionals know
to screen serious buyers. They also have 50-60 hours a week to be available
to show your property. Agents usually show and sell inventory from their own
first, generally avoiding FSBO’s because they are not in the MLS and are
unwilling to cooperate with agents.
These are just a few reasons to consider using a professional. Other benefits
1. C.M.A.- to arrive at a true estimate of value for your property.
2. Sellers Net Sheet - to let you know how much money you
will walk away with after close of escrow.
3. Prep For Sale List - to maximize your sale price and minimize market time.
4. Salability Checklist - to expedite the sale.
5. Document Checklist - to avoid delays and reduce problems after close by
coordinating the closing with escrow, title, lender, and covering inspections
aspects of the transaction. FACT: FSBO’s are three times
as likely to go to litigation than agent-involved transactions.
If you still have any questions or concerns,
please contact me
and inform me of your situation. I would
be glad to be of help.