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What We Don't Want to Admit: Teenagers Have Sex, And FSBO's Need Realtors

Okay, I know as real estate agents the last thing you want to do is ENCOURAGE FSBO's (or encourage a fee that is less than your standard commission).

So even if there ARE ways to pay a real estate agent in a FSBO transaction, you wouldn't want to blab about it. "Hey, Mr. Seller, why don't you try to sell it yourself for a little while and call me if you get a live one?"

It might encourage MORE people to sell their own house without a Realtor.

But isn't that a little like not giving out condoms to teenagers because that would encourage them to have sex?

Maybe the world should admit teenagers have sex and there will be buyers and sellers that come together without a real estate agent.

After being the mortgage broker for 2 "for sale by owner" transactions, I have a brand new appreciation for real estate agents. I also wish there was a simple and cost effective way for FSBO's to buy the services required to complete these transactions.

I don't want to be the (poor) substitute for 2 Realtors in a FSBO transaction. I am the mortgage broker.

It is hard enough to get the loan approved, much less handle a dual agency transaction with all the drama of low appraisals, move in issues, inspection issues, contract revisions, re-negotiations, melt downs, near divorces, etc. etc. etc. etc. etc. etc.!!!!

Damn, you guys sure earn your money. Didn't I just read an ActiveRain blog that stated this "Finding the house is the easy part"?

Amen.

Buyer and seller may have muddled through to the point of coming together on price, but after that the train of thought goes something like this:

"Well what do we do now?"

"I dunno. We need a contract, don't ya think?"

"Nah, what do we need that for? But I do need a loan. Maybe I should find a mortgage person???"

"Hey! Those mortgage people know all about paperwork and stuff. Let's go see the mortgage person!"

And thus, the mortgage person (as the only real estate professional in the transaction) becomes Realtor By Default.

Maybe it is time to offer limited services to FSBO's with a different pricing model. Openly. Willingly. So everyone knows about it.

Instead we let them muddle through with a little help from the mortgage person, and a little help from the title company. This nearly always results in something LESS than a satisfactory transaction (not to mention depriving Realtors of much needed business).

Is it because stepping outside of the traditional pricing model is just too scary? Oh ye of little faith. People NEED Realtors. HA! Let them try to do it by themselves and you will see a whole new appreciation for Realtors.

Maybe it is time to EMBRACE the people who choose to find buyers for their real estate. Guess what? With the Internet it is only going to get easier and easier for sellers to find their own buyers. These people are going to seek out a different pricing model than "seller pays X percent" to list house.

When will we, as an industry, stop labeling people who want to sell themselves with the unflattering term "Fizz-bows"? When will we realize they are just another potential customer who desperately needs the services of a real estate agent?

When we stop being afraid that asking buyers to pay instead of sellers just might be a good idea.

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

Posted by Janet Guilbault California Mortgage Banker on 07/08/2009 05:15 AM

Comments (88)

FSBO's: Helping Them in This Market in the Sales Strategies / Tactics Channel

fsbo, for sale by owner, commissions, selling real estate, buyers, real esate agent

Originally posted at: Lucky In Lending: What We Don't Want to Admit: Teenagers Have Sex, And FSBO's Need Realtors

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88 Comments on What We Don't Want to Admit: Teenagers Have Sex, And FSBO's Need Realtors

JUL

2009

I still can't believe people would even want to sell their biggest investment blind. All need a realtor...I agree Janet

In my area this is being done a lot, through limited services agencies like Cmesell, MLSfor owners, etc. The selling agent does indeed end up with all the work, all the headaches and all the liability. The person who put it into the MLS is nowhere to be found in the transaction. It is just not worth it to be involved in this, unless the buyer is a family member or your best friend. I think it is totally unprofessional and wrong. We even have some listings where they are offering a commission of $1000. Whether it is a Buyer's Market or a Seller's Market or anything in between, we really do earn our commission.

You know I've always wondered what would be the best way to approach a fsbo... after all I know a ton of agents call them......

I have always offered a FSBO service and you'd be surprised how many take me up on it, then how many convert to full service after just a few weeks of taking the calls, the appointments, the inquiries.

June: Bingo! That is my point. They only value your services after they try to do it themself. But I am saying there should be something in between because buyers and sellers sometimes come together without needing to market their house.

Actually, both of my transactions did not include the seller trying to sell the house on the open market.

Konnie: Well, one way would be to have your mortgage partner offer to help any potential buyers with the financing. Naturally, when they are ready for a Realtor, mortgage partner could suggest YOU.

Sandra: What if people could place their own property on MLS and buyers paid for the services? I am not suggesting lowering what you are being paid now.

I am only saying it makes more sense for the one USING the services of a Realtor to pay for it.

Kathy:

I think sellers need representation as well.

But if a Realtor does not need to market the house, isn't one of the services of the Realtor already done?

If a homeowner had painted 3 rooms in his house, even if he did a lousy job, would the painter still charge to paint those 3 rooms?

Interesting points. I never thought about the how the mortgage reps, and probably the title companies too (if the FSBOS's think of that) get taken advantage of when there's no agent around to help. But I thought there were already business models that offer what you're suggesting. Don't the a la carte brokerages offer services along these lines?

JUL

2009

FSBO's are the easiest listings you can get. . .you just have to be patience and persistent

I love negotiating with FSBOs. I have built a great listing presentation along with a great online arsenal to market propety in order to obtain activity.

Awesome title, Janet! Definitely an attention getter. And so true. I do offer a FSBO helper service just for the instance where the seller finds a buyer on their own. This came about from reading Lonn Dugan's information on FSBO's. It's a great idea to both convert FSBO's into listings and to have another income stream. Very effective.

Great post and it deserves a few re blogs. As a LO I was often put into this position and that was years ago. I would not want to be the middle man today!

Everybody is a superman in real estate. Real estate is a team sport. No to FSBOs

It was easy to sell as a FSBO when the market was going up. I always found they were over priced but they got some sucker to buy sometimes. Now they are still over priced but sitting.

Realtors, you got a life, we let you lead it. And remember "R"..the hardest working letter in all the alphabet. Wear it with pride! Good post. You hooked me on my teenagers having sex caption...clever!

We are dealing with one under contract right now. All I can say is 9 times out of 10 we do the work on both sides. We do it to protect our buyer. I agree with Russ very few in our area now and they do just sit. Never thought of it from the lenders perspective if both found each other one their own.

Janet ~ You are 100% correct; FSBOs are just like teenagers having sex,....and then learning about safe sex/birth control after they are 3 months pregnant....it will not help them with this baby, but maybe, just maybe, if they make it thru this one time...they will know better the next time!

Great post..thanks for sharing!

In total agreement with everything you've said, Janet. Isn't it interesting, though, that in actuality, the buyer is paying the commission, though not before the seller gets the money?

You said it very well. They can sell in our their own and muddle through a less that perfect transaction, or they could hire a professional and get it done quickly and in the best manner for all parties. FSBO's need Realtors.

Thanks for taking me back to the days i was 16 years old and the hormones raged. Older FISBO onwers have lost the hormones but still have the rage, especially when it comes to Realtors. That is not the only reason they do it, but a big one. The key is to change the psychology. One way is to offer a fee for service marketing plan to them. You can also give them a 50% credit back if they decide to use your full service percentage. I wonder if that will work with my Doctor?

I can't tell you how many FSBO's I've had come crawling back and crying went the deal went south because the buyer and seller got cross with each other over something. Working with FSBO's can be a good experience!

I always figure there's a reason the institution of realtors has stuck around... cause it WORKS. You don't need us when the transaction is smooth. You need us when there is a problem. And how many transactions have I been involved in iover 20 years that did not have problems???? Let's see, there was one back on oh-two..... ummm, that was it!

In this market especially, I just can't see the "wisdom" of attempting to do a for sale by owner.

I would like to nominate this post for headline of the year! I also happen to agree with the content. As mortgage lender in Richmond, VA I too have become the default Realtor caught in the middle of a transaction. I requested the parties get a Realtor or find another lender. We closed a few weeks later.

Love the headline...it definitely falls under the column of "Made Ya Look!!!!" I don't call them FSBO's anymore...I refer to them as "Unrepresented Sellers." That is what they are and they do need us. There will always be some who either don't or won't "get it" and those who are so driven by anger and resentment that they cannot get over their issues with REALTORS, but for the rest of them, we need to reach out! Great post!

Good morning readers and subscribers. So I snagged you with the headline on this one? LOL...you gotta do something to keep the mortgage blogs interesting.

Jeani: I do love your term unrepresented sellers and I am immediately going to adopt that. I wish everyone in the industry would do the same. If we expect to get respect as an industry, we also need to give respect.

I also agree that we should reach out, but respect their decision. I honestly believe the world is waiting for our industry to do exactly that.

Personally, I continue to be shocked whenever a consumer comments. Very telling, you know?

Hi Richmond Lender (Damon):

Same old story...what seemed to be pretty simply morphed into issue after issue. I couldn't understand what was taking so much time on this one transaction...until I realized I was doing all the work that is normally done by the Realtor.

As a former Realtor, I had just forgotten how much more emotion goes into a home purchase that into getting a mortgage.

I must say, buyer and seller held themselves together, appreciated everything I did, and we were able to work through every last issue.

We are now waiting to fund.

Mark: There are more reasons to sell your own house than just saving the Realtor commission. But I do agree that sellers need a Realtor if the house requires marketing.

I cannot imagine letting a stranger poke through my house while I was at home. I would go crazy.

Sally: You are SO right! There is no such thing as a completely smooth transaction. I think they DID become extinct right around 2002! Great comment.

Bob: The role of Realtor as mediator is greated underrated. "saving the commission" by selling yourself is VASTLY over rated!

Joe: You said this:

The key is to change the psychology. One way is to offer a fee for service marketing plan to them. You can also give them a 50% credit back if they decide to use your full service percentage.

I agree that we need to change the psychology. That is so very true.

But as to your suggestions: Why not get out of the box where we always charge the SELLER? How many FSBOS could you snag by approaching them as they are selling and telling them that once they land a buyer, you will handle the transaction from there?

List the things you will handle, and suggest the BUYER be the one to pay. (Seller loves you because he gets someone willing to handle the hard part and not charge him....naturally he will refer you to the buyer, and in all likelyhood your fee will end up getting split)

Darrell at Integrity: Any mortgage person who has handled a FSBO knows how much they need the services of a Realtor. Fsbo's never think about all that happens AFTER they have a buyer.

William: Yes it is very interesting the way money flows in a real estate transaction. I believe it may be outdated, however. The public seems to think so.

Bobby: You took my analogy and made it even better! I love that. Had to laugh at your comment. Thanks.

Missy..your comment reminded me of the time I sold my own house, Yep, I was a FSBO. I have never blogged about that experience and maybe I will. I will only say that from the perspective of a homeowner trying to sell, Realtors did not endear themselves to me.

Kind of interesting, because like most FSBOs, I was really interviewing the agents because I really didn't think I could sell it myself.

I just had to "TRY".

Katiejo: I like your comment that real estate is a team sport. I think I will steal that line.

Laura: It is like being a middle man. It just goes to show that one person should not try to do the job of Realtor and Mortgage broker. Talk about setting yourself up for overload!

Roger: would love to have a link to the information about FSBOs or to one of your posts on the subject.

Harry: Ditto to you. If you have written about your FSBO presentation...please share with a link.

Lisa: I will only speak for my area. I am sure there are companies around that do this. They are not well known, and probably Internet based, and not local.

But what the clients REALLY want is just a regular local Realtor from the neighborhood to come to the rescue and help them.

I guess you could say the public is hungry for a la carte services from their local Realtors.

Janet you sure know how to hook em! Great title! FISBO's are won over when they figure out it aint easy and it's more likely to cost them more money in the end. Contintue to give them more and more paperwork and the light bulb will go on. Some lenders go out and tackle fisbo's and give the leads to their agents. Now that's a smart lender! Saves headaches all around!

We had a listing that we just gave back to the seller last week. The husband won't lower the price and the wife wants to move yesterday. We suggested they try for sale by owner. Then they could lower their price and maybe accomplish their goals (we had the listing for over a year and no showings - I mean NONE!)...

We told them if they get someone who wants to buy the house to let us know and we'll find some way (interpret "alternative compensation agreement") to get the paperwork done for them. Maybe it will only be 3%, maybe it will be less, maybe it will be more. Honestly, I won't know until the situation presents itself.

I definitely think there is a place for FSBOs in the market, and they will need us someday. Might as well leave the door open.

For Sale By Owners is not as easy, one of my very first deal was a FSBO. You are absolutely right about other ways to collecting fee of our service! THANK YOU for your post!

Shhh...don't tell anyone, but I do about 4 hourly rate FSBO contracts each year. 50% of the time the buyer hires me (and pays me) and the other half the seller. It's also on my website.

Agents that use the real estate consulting model do offer services for these folks. If you get into that situation again head to C-CREC or NAREC or google "real estate agents hourly rates" or something like that to see who is in your area.

I wouldn't expect to see the big guys offering this anytime soon. Commissions are lucrative.

Melina: Thank you for sharing this information!!!

And for sharing the fact there is someone out there who has grabbed this opportunity that is staring all of us in the face. I think you are quite astute and that your are filling a gap in the market.

I would LOVE to have someone like you to refer a FSBO who has come to my office.

You know what? If I was a "big guy" I would have at least one person in the office that offered "hourly rates". I bet that guy would be busier than anyone thinks (or would like to think)

Eileen: My first transaction as a real estate agent WAS a FSBO too. She was elderly, she liked my puppydog enthusiasm, and was trying to sell a rental.

Can you imagine? Even a green pea Realtor is better than no Realtor.'

All the agents in the office were floored I was able to land a listing my first month in the business.

Puppydog goes a long way I guess?

Anna Banana: I can't imagine having the time to contact FSBO's with everything going on in the mad mad world of mortgages, but that is a great idea.

Christianne G.: Actually Fsbo's need you NOW. They just need to have a clear path. I say give them a way to go. Most of them will covert to "full service" anyway.

I have been the Mortgage Professional on several FSBO deals. It took me one to learn.

I have since referred the deal to one of my Real Estate Professional referral partners in the area of the purchase. I worked out a structured fee that both parties paid out on that was fair to the RE Pro. That way, the seller isn't paying high realtor fees and everything gets done correctlt. This process works a lot better when we all work through it together.

I now average at least 1 FSBO deal per month - works out for everyone involved.

First, I had to scroll down to make sure this is featured. It is, as it should be.

Second, I love this idea... the ala carte menu of services we can provide is practically endless. Especially with short sales and other less traditional transactions peppering the landscape right now. But I will say that buyers will typically balk at paying anything when they know they can obtain our services for nothing. So we still have to find a seller willing to pay something. Because the buyer has the most to lose in a FSBO transaction, the seller carries far less risk if they decline. Still... there is a clever method if we take the time to word it/present it/price it right!

Good post today, thanks for sharing with us today. We live and learn, FSBO's included!

Patricia Aulson/portsmouth nh real estate

Hi Jennifer :

See how easy it is to believe that the buyer won't pay? See how easy it is to go back into the groove of the seller should pay?

Buyers do not get real estate services for free...they pay indirectly. But the shouldn't because that is at the root of why consumers are so unhappy with the real estate industry.

If buyers paid themselves, they would appreciate the service much more than they do now because they paid hard earned cash to get it.

They would choose the agents much more carefully than they do now.....again, it is their hard earned cash.

They would realize the value of a Realtor because they are going to try and do it themselves and fail.

They would not "switch" agents.

They could freely explore FSBO's, short sales, and other opportunities (agent is getting paid directly and not reliant on a seller paid commission)

They could buy only the hours or the services they need.

If tommorrow morning every agent had to "sell" buyers on paying them instead of some other agent, you would also see half the agents leave the business because right now, borderline agents can survive (because they don't need to know how to "sell" anything)...

You will usually find homeowners hwo have sold homes before taking the FSBO route because they saw how much money they paid the last agent. For those that can do it, good for them, they will call us if they need us, just when will they realize that they do?

It seems to me that you are suggesting that Realtors offer A LaCarte services. It's like a Realtor suggesting that Loan Officers offer to pre-qual a buyer for a nominal fee without the expectation of having the opportunity to sell them on your mortgage products.

I think the correct answer to your FSBO dillema is to request both sides to hire an attorney to deal with the contracts, and other issues that confront us in our business. In some states you would run the risk of violating various laws by acting as Real Estate Sales Agent/Attorney by aiding people who don't know what they are doing because you want to earn their mortgage business.

Attorneys get paid regardless of whether the deal goes south or not. Whether they are taking a flat fee for the transaction, or being paid by the hour, they are basiclly offering the A laCarte service that you need for the buyer and seller who have had a meeting of the minds on their own.

Mortgage Resource: Would be interested to know if buyer or seller pays and how the fee is paid. Care to share?

Patricia: I know I learned something by taking on a FSBO...Realtors work damn hard to solve issues.

Random: I am a little confused by your comment but will try to respond.

If a Realtor sells an a la carte service, why would he not have the opportunity to sell more services?

I actually think clients SHOULD pay a fee to get prequalified. I would consider this a GREAT opportunity to try to convince them to finish the transaction with me....and naturally I would credit them the fee for the pre approval if they decide to stick with me.

At least here in California, attorneys do not get involved in real estate transactions.

You stated: Attorneys get paid regardless of whether the deal goes south or not.

And that is exactly what needs to happen in the real estate business in my opinion.

Why do we need to give away our services just because not every deal closes?

Janet, great thought. Not all FSBO sellers are idiots BUT only about 13% are successful doing it on their own. That statistic alone should get some eyeballs popped wide open. However the FSBO seller should not be demeaned as they are by many agents.

Hi Janet,

I know we have some brokerages around here that offer a discounted fee, and I have thought about it before. But I have heard some horror stories, and decided I had better stick to the traditional type of transactions. :)

-Lisa

Yo Janet- I think from now on when I write a blog, I will email you the subject matter and have you come up with a headline....! is that okay??

Well, here in OUR AREA...as REALTORS are soooo fond of saying...many of the Agents who approach FSBO's for listings approach them with a flat fee for the service...Instead of going with a %, they go in with a flat fee! Why not?? Come on...you are not discounted your services, or deprecitating your personal value...because what value is there in ZERO???

IF I WERE A realtor, I would much rather make 5 Grand than 0 grand! Another potential referral source, and who knows...a building of one more relationship can lead to TONS of connections! I realize that on a 200k deal, 5k isn't alot...but it is an easier # to understand...rather than a percentage! Also, my prediction 8 months ago...that was VERY unpopular here in the RAIN, was that I see Realtors going to a "sliding" scale at some point, or being forced to by the market, FOR THEIR SERVICES! I never said I ENDORSE this, just making a BOLD prediction...based on Loan Size..etc..

There are really good FSBO presentations out there....I have one...that I give to the REALTORS that I personally work with. However, as part of Janet's well done blog, I will offer to EMAIL it to anyone that emails me for free. Janet, I will send you a copy too if you would like!

Either way, I dont pretend to buy & sell realestate, but have gone as far as obtaining a copy of a counter offer for a FSBO transaction, so THEY could fill it in! Sally Hanson here in the RAIN was kind enough to offer it to me! Thanks Sally! -

No fluff here..just good commentary! nice job! - Bucky

A major component is that the agent needs to understand the thinking of a FSBO...either on the buying side or the selling side, and a script needs to be formatted to ones personality to counter the thinking of the "prospect". I just met with a "PROSPECT" yesterday that meets this criteria....that I have been working on for 2 years....and there house is not sold yet. This one is a tough one but I get it my best. Now they understand the concept and are just trying to negotiate down the commissions, of course. Hopefully we will have a CLIENT soon, but I am holding my ground.

Janet, for whatever reason my edit button isn't showing up..so sorry about the grammar errors! :)

One thing I forgot to say is that I believe that NATIONALLY only around 9% of all FSBO's end up SELLING FSBO! The other 91% go with a Realtor! - That in and of itself, is a very telling #!

D

Gary: When I sold my own house FSBO the only Realtors who approached me wanted to talk trash about my my house or tell me that only idiots tried to sell by themselves (I was forced by circumstances to be a FSBO).

One even went so far as to tell me my floor plan was "obsolete" and no one would ever buy my house! Go figure.

Even I thought I wouldn't sell it myself so secretly I was waiting for some Realtor to sweep me off my feet so I could swoon and sign his listing. How many FSBO's feel the same way? Probably alot.

After a couple of weeks of having a super lame"FOR SALE" sign in my front yard, and super lame Realtors criticize me, amazingly I was able to sell it myself. I know this is the exception, not the rule.

PS House sat in a very exclusive neighborhood and I pretty much figured someone would want to get into that neighborhood, at that price, even if floor plan was "obsolete".

Why didn't some Realtor figure that out and dazzle me with a brilliant marketing plan based on this fact????? Instead of trying to make me feel like a chump?

Lisa: What kind of horror?

Bucky: you wrote: my prediction 8 months ago...that was VERY unpopular here in the RAIN, was that I see Realtors going to a "sliding" scale at some point, or being forced to by the market, FOR THEIR SERVICES!

I would completely agree with you that the pricing model for real estate services is going to go through some big changes. It is outdated in MANY ways. But what is really going to force this is the fact consumers are actively looking for alternatives NOW. Consumers are not happy...just read any comments that are made by consumers on this subject and it jumps out at you right away.

But that's not all! Real estate agents aren't happy either. They are working on a far greater percentage of deals that never close. They are fighting for their commissions because consumers are not happy. They do not get the respect they deserve.

Somethings gotta give, ya know?

Darin:

Would love to see your FSBO presentation.
Where would you put this post on the AR fluff scale?
Mortgage writers have to have shocking headlines or who would read this stuff?

Signed, PollyAnna Cotton Candy Fluff Bunny.

Tim: Seriously, you have been working with a FSBO for 2 years?

You would think that poor guy would give up based on the torture factor alone. Who wants to be trying to sell their house for 2 years?

My hat is off to you.

A home owners has the absolute right to sell their home themself.

I have the absolute right to let them.

I've sold a lot of FSBOs over the years. The transactions are just like any other and often smoother. The seller understands that we represent the buyer but will put the deal together and get it to the settlement table. That's all they need.

FSBOs are no threat to agents.

For me, they are just inventory.

Lenn: So what arrangement do you make with the buyers to get paid?

I am in complete agreement with your philosophy that FSBOs should be inventory. But that means that you have told your buyer that they are paying you, right?

Or are you asking the seller to pay because you brought the buyer?

Sorry, Lenn, confused and really would like to know how it works.

Sometimes homeowners want to market the home to the immediate neighborhood and give it a shot. Folks cringe at the thought of paying 60K in fees to sell their home to a neighbor or family member of a neighbor etc etc. If they luck out, which is most often the case, they then get the damn thing on the open market. Title companies usually pick up a lot of the work for an increased fee from my experience. And of course the lender does a fair amount of additional work.

I would go as far as saying MOST need a Realtor, not all. Look at how far we've come with cars/trucks. Unless you're buying new, a car dealer is not needed at all. We get our values online, we sell our car online and we purchase our car online, or at least I do. When you look at it that way, you come to realize that some people are smart enough to do it on their own but I would say just a small part of the population. Look at investors. The only reason we get business from them is because homes are listed in the MLS.

Now, should they use a Realtor is the real question and yes they should, providing they will be getting what they deserve from a real estate professional but some close the deal thinking they got short changed and therein lies the problem. When they do not feel they got the level of service they deserved or required, then the next time they might be more likely to try it on their own while the ones that are thrilled with the level of service will be repeat customers and likely refer.

Let me close by saying that we have, over the years, cut out the middle man by purchasing online and if you're like me, you will have saved thousands of dollars since doing so. I think people assume real estate is the same as buying online and it really isn't though sometimes it seems that way.

not to be snarky, but the lender or title company could ask if the buyer & sellers are represented, and if not, say thanks, but no thanks, just like the FSBO did to the Realtor

I've been the mortgage person for FSBO's - it is usually a constant fire drill, people show up to settlement like deer in headlights. It is commical but often very frustrating as a lender. I always say, you usually get what you pay for.

I am a do-it-yourself kind of guy. I don't have a problem with FSBOs, in fact, some of them have more experience that a lot of real estate agents. We need to help when and where we can.

JUL

2009

Janet: You have jsut become Greg Swann's soul mate. Go to http://www.BloodhoundBlog.com and search for the posts on divorved commissions. As a lender, you cwould have to reform your side of the deal so that buyers could finance their buyer representation fees. Since and FHA Loan requires 3.5% down, buyers have to be able to finanance their +/- 3% fee. Do you really think that lenders are going to willingly put that much more negative equity into every loan? Since real estate is regulated by the states, you need to fix 50 sets of real estate regulations.

My take? Not happening any time soon.

Can anyone explain how "the higher the purchase price, the higher my fee" makes sense? Lane Bailey, I like your style.

Hey Janet! You had me laughing today, on a day my internet, phones, fax...eveerything is down! GOD BLESS CHARTER EH??

Well, on the "fluffer nutter scale" i give you a 2. 20% fluff, 80% content and discussion material! That is about right ! :)

Other people might consider the whole blog fluff, but you know what..sometimes that is what you need to attract attention to yourself! I will email you my FSBO stuff! NO problem..but cannot until internet back up..God Bless Charter..

AS SOON AS MY INTERNET IS UP...I have an interesting post on Real Estate signs coming out...took all the pics myself too! Some of them are MLS listing only and FSBO signs too!

As far as SHOCKING HEADLINES...my two most popular so far that I have written have been Mortgages so easy a Caveman can do them, and Screw the Mortgage Biz, Im going to Mascot School!

Good mix right?? Let me know when you get the FSBO stuff, and take some time with it...it is awesome! It is a package of stuff you can give to your Realtors to help them, and helps YOU work as a team and TEAM UP on the FSBO!!! Take care, Darin

Thomas: You bring up a very good point. Lenders are funding all 6% of the commission NOW, anyway.

Agents could be paid a retainer fee (a small amount but enough to bond agent to buyer and pay for initial services) If a successful closing occurs, fee could be reimbursed through the standard 6% commission by the agent.

If it does not close, agent gets to keep retainer.

Daniel: Please do not ask me to turn down business just because there is not real estate agent. This is not the market where I have that luxury.

Consumer: It doesn't make sense. Even for those of us in the business. That is why I am suggesting we get rid of "X percent of the price of the house" pricing model.

All that does is unfairly charge those that have higher priced loans and larger mortgages.

PS I also like Lane's style but do not think homeowners are more skilled than Realtors when it comes to doing a real estate transaction.

I realize Teens will have sex and FSBO's will sell homes. Even when they appear to succeed in their endeavors I wonder if they have really made the best choice. Did they get the most out of the situation they could have? Will they regret the choice they made in the future?

I don't condemn, I have made my own bad choices. My goal is to guide, educate, and help people structure their life for success - As a Realtor and a Father.

Darin:

Well damn. I will need to go back to the drawing board and see if I can improve my fluffer nutter ranking. Only a 2 out of 10?

Can we start a new group called "Strictly for Fluff"? I think just having "sex" in the title should rank it at 5. Seriously.

Signed, PollyAnna Cotton Candy Fluff Bunny

Gene: Right you are. Our role is not to condemn. Our role is to be the parent or the professional.

Consumer & Janet

I could not disagree with you more. There is no cookie cuttter way to market a home. The higher priced homes require a greater expenditure of marketing dollars. For some reason alot of people think we just throw it in MLS and it gets sold or we just unlock the door to a house. Well that works for few agents, but most of us are busting our asses day in & day out, performing due dilligence for our clients benefit. And we are gambling with our money. If the house does not sell WE DO NOT GET PAID. that is why we earn a commission. That is why a good Realtor is worth every penny of that 7%. Not to mention in most cases that 7% is split between 4 people. 2 brokers and 2 agents. so I am sorry but 1.75% commission is not that big a deal to have the process handled professionally. Some people are sophisticated in Real estate and have no need for an agent

That is not the case for the overwhelming majority of the marketplace. they need Realtors.

not to mention I have never had a deal fall apart over commission, and I have never charged less than 5%.

it is also a standard clause in all my Listing agreements that if I sell it myself the commission drops 1%

oh yeah, if Discounts are the way to go, than why are they all but gone with the market correction? I would love to see a homeowner negotiate a short sale with a discount firm ROFLMAO

Daniel: I also do not agree with discounts. I agree most homeowners do not understand the pricing model and wrongly believe we make far more than we actually do.

From the mortgage side of it, I am finding clients are not fighting me on fee. They are becoming aware you need a pitbull to get a mortgage approved and closed these days and they seem willing to pay.

Interesting and though provoking - could provide an additional revenue stream while still helping people buy and sell real estate.

Funny and still laughing at the end, being a LO and helping the fsbos, always end up with a realtor at the end when a buyers is found. I just love it when I can refer them to my realtor, but by then I spent a lot of time working the details and put them on my 30 day marketing plan to sell their home, and if they can't sell their property after 30 days they agree that I would refer them to a realtor... to help them sell. If they decided they still don;t want to work with a Realtor yet, then I cut them off my marketing plan program.

I am not a Realtor with FSBOs I sure feel like one and can appreciate your hard work. But I do agree there has gotta be an easer way that will make sense to the unpresented seller that they need a Realtor. I loved your title for the blog... LOL that was good!cc

Janet... the average real estate agent has about 6 transactions under their belt. Of course we all know that means that about 75% have fewer than that, and the other 25% have WAY more. I had some folks I was talking with that had personally bought and sold 25 homes in 30 years in multiple states. Did they need help? A little...

I would work a deal with them. But... I also wouldn't cut a deal to someone that thinks they have all of the answers when I can plainly see that they don't.

The bottom line is that a lot of agents have a problem with FSBOs. They assume that they are not equipped to deal with the transaction... and while they might generally be right, it isn't always true. We need to look past the FSBO label and see who we are dealing with.

JUL

2009

Your title definitely caught my attention. I can see the need for this business model. However, consider the headache for a single agent trying to handle this, kind of like a dual agency/double ending issues but without a relationship of any sort with the parties.

Christine: Maybe the seller should go out and buy his own services from his own agent? Could there not be sevices for the seller that do not include marketing the home?

Lane: Agents may have a problem with FSBO's but I think the writing is on the wall.

Consumers are going to the Internet to find what they need. And you can argue all day long that buying a house is different.

And it is.

But FINDING a house is not that much different anymore than going on the Internet and looking for a airline flight. Or going on E Bay to find a 1955 postcard of Yosemite. Or finding an apricot toy poodle.

It is a natural progression of the market and everyone should admit it and come up with a pricing model that works for this.

Waaaa, I don't care if the mortgage lender has to do more work with a FSBO. Deal with it as part of the market. Even attorney's don't want to handle the transactions because of all the drama. I don't offer you mortgage advice and how too conduct your business, why do you INSIST on offering up advice to agents? I think you shoud stick with mortgage/lender advice. I think you might be trying to be a 'closet' realtor.

^^^ WOW

I ran into this site about FSBOS quite interesting..I would like to know if you are familiar with this site that offer FSBOS as a flat fee to list their property on the MLS for a very reasonable price. I would love to hear from others on this as well...

http://www.ezmlslisting.com/index.htm

JUL

2009

Nice opening title; caught my eye. Of course, I have a small issue with mortgage people having to do the work of a Realtor. Especially, when there are so many out of work professionals. Make a call to someone that you have a relationship with. It would seem so very easy. Pay them for the transaction. A couple of hundred bucks to do the paperwork. This rant is only small rant. Why? Because this market has made a lot of us handle business that may be outside the scope of the licenses we hold. Not trying to get the states to look too hard. But, there may be an issue with Realtors and short sales. I refer the ones I get out. It was too time consuming anyway. That and now banks are recruiting Realtors to do loan origination. Watch out mortgage professionals--we may be invading your turf.

Having the buyers pay the fee would seem like a good idea. I have encountered buyers who after the down payment and other fees. Do not have any money left over. Asking them for say $4000-6000: not many agents are going to get paid. For most markets; the sellers are the only ones who have money-- thinking that is why they started the tradition of having the sellers pay.

Realtors are still ok, at least for the time. Over 80% of people start their search for a property online. Most will contact a Realtor to ask questions and then sign up with one. We sell over 80% of all properties. The number of FSBO's (unattended clients) have actually dropped. This market is hard on everybody. This is starting to turn in to a blog post. So I better stop. We still have a purpose. For how long....?

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Janet Guilbault California Mortgage Banker

Walnut Creek, CA

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RPM Mortgage

Address: 3201 Danville Blvd, Suite 195, Alamo, CA, 94507

Office Phone: (925) 552-3867

Cell Phone: (925) 212-6347

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