FSBO vs Realtors
Updated: Jun 15, 2018
Do you know what a FSBO is?? We in the Real Estate industry refer to it as: FOR SALE BY OWNER.
Those are properties that homeowner's would like to sell without an agent, meaning without having to pay a commission.
The main benefit of going with a Realtor to list your home vs trying to sell it on your own is EXPOSURE.
For one, Realtors will give you a great idea on what your home will sell for, advise you on what you should do and little tricks on what will make your home show the best to potential buyers. We as agents see many homes. We can walk in a home and point out the smallest detail on why your home isn't selling or hasn't sold. Trust me. We know. The best thing we as agents have access to though is the MLS. That stands for Multiple Listing Service and it is basically our BIBLE as agents, to homes, past and present for sale and sold.
All realtors have access to this information and use it to find homes for our clients. MLS is so important, it is actually where 3rd party sites like Zillow, Trulia and Realtor.com pull their information from. You may have heard of MLS but may not know how important it is when it comes to home information. The MLS is a service only available to Members, which include: Realtors, Lenders, Appraisers and others that pay to be a member and have the required licensing.
If you want to stick a sign out in your yard and mark it for sale by owner, that's great. Go for it, its worth a shot. However, you WILL NOT get the showings out of it that you would if you had a Realtor, and chances are, you will end up hiring out a Realtor in the end.
Agents also DO NOT like people wasting their time. To us, time really is money and we know a great deal of what we are talking about. We are professionals in our industry and although we appreciate the thought of wanting to save money, and trying to list yourself, there really is a lot more involved than people realize.
I'm only talking about the trying to get a buyer part of this too, the paperwork involved and making sure you understand everything your signing is a whole different story. Houses are a HUGE purchase, maybe most expensive you will ever make, and to purchase one, you need more than just a promissory note. (Which we don't actually use) Agents are also there to PROTECT YOU and have your best interest in mind, weather you are listing or buying, we are there for YOU.
Usually, when its a FSBO home, if an agent brings the FSBO a buyer, the agent will not get compensated for their time, meaning they will NOT get a paycheck from the sale.
If they're not getting paid, then why go through the trouble of showing the home?? That's easy, they wont. Realtors will NOT show their client's FSBO because of that. So if you decide you want to be a FSBO, make sure you are willing to pay the Buyer's Agent. (Meaning the person that brings you a buyer for your home) That will at least, bring you more showings on your home. Oh, and you will need to ADVERTISE that you will pay Buyer's Agent because Agents are not going to call you and ask. Just letting you know...
There are services and people, (including myself) where, for a flat fee, if all you want is your property on the MLS than you can pay a fee just for that. That way you are getting the exposure you want, yet saving a little money from the agent you are trying not to hire in the first place.
Be careful though, if you do not price home correctly, (usually FSBO list their properties too high) your home will sit on the market, for WAY too long. Then if you really want to sell, you will then have wasted all that time only to hire an agent to get your house sold, which is what you were trying to avoid in the first place.
Look up the stats, well over half of FSBO homes end up going with an agent to sell after they've spent money trying to save money. In the end, being a FSBO is usually not saving you any money at all. Talk to a Realtor, I bet you will be surprised. Once we explain how we market, how we will sell your home and go over the final price and what you will NET for the sale of your home, you should be comfortable in justifying your money for our services. If you listen to us, in some cases, you can NET more with a Realtor than you can if you try to list your home yourself, and that INCLUDES our fees. Like I said, just talk to an agent.
I recently saw an ad on Facebook about someone advertising their home as a FSBO. I looked up the comps, I saw the inside of their home from their pictures. I know the price they were wanting was too high. If I had the listing, I would list for at leas 10k less than what they were wanting in the homes current state. However, just by looking at the photos they had up, I could tell immediately how they could get multiple offers for their home and have it sell for more than the price they are currently wanting.
If you have ever tried selling your home on your own, or know someone that has?? I guarantee that if you ask them, they will tell you they had Realtors calling to list with them. There is a reason, and its besides the money. Its because we know how to sell your home. Believe it or not, we actually know what we are talking about and actually WANT TO HELP.
(Most of us anyways :) )
Ok, you get it, HIRE A REALTOR.... but you still don't believe me. Lets say you are a FSBO and you actually found a buyer for your home, a buyer who is financing. All is well until the Appraisal, when it comes back, it is a lower amount than your sales price. Do you understand what will happen?? If you don't want to lose the sale, you will either need to re-negotiate price, the buyer has to come up with CASH for the difference, or the sale will get cancelled.
Even if the appraisal comes in well over, you will be upset because you now know that you could have sold your home for more. Nobody wants to over pay for a home. NOBODY. Once the deal gets cancelled, you end up going with a Realtor in the end anyway so why not actually try and SAVE MONEY by choosing a Realtor in the first place.
If you still are interested in selling your home as a FSBO, please, at least, pay a fee to have the information added to the MLS and pay out to the Buyer's Agent.
Although I would prefer you hire me as your listing agent, I will also add your information to the MLS If you are wanting more information, don't hesitate to send me a message or give me a call! firstname.lastname@example.org
I am more willing to help in anyway I can. I am here for YOU and ready to help!
As always, thanks for reading and don't forget to Subscribe for the lastest blog posts from me!