Sellers go FSBO vs a Short Sale to avoid Commission

By
Real Estate Agent with Better Homes and Gardens The Masiello Group

Some sellers are choosing FSBO over listing to avoid paying a commission. Problem is they often owe too much on their home and are trying to save a dollar. They may choose to pay a flat fee just to be in the MLS, but don't receive any representation from the agent at all.

Why are they doing this?

Bottom line is "their bottom line"

Homeowners are stuck between owing too much on their home and trying to become their own salesperson / negotiation / transaction manager in the meanwhile to try and save themselves money.

Keene, NH had a HELP-U-SELL business in it's community 2 years ago and they didn't make it. Sellers were coming to The Masiello Group angered they had spent time, energy and money into listing their home in the MLS with HELP-U-SELL and they didn't get anywhere. Shortly after the business was started, it closed it's doors.

The profession of selling real estate is a full time business requiring experienced professionals who pay to keep up their credenials, keep up with the changes in legislation and have access to others in the industry as this is a "connections" business. The more an agent has connections and networks and support, the more value the agent brings to a seller.  That commission is well earned.

Today's market has left me working longer and harder than ever to keep transactions together. When everyone's goal is the same- buyer wants the house, seller wants to sell it- but a ton of red tape gets put in the way, my job is to navigate us through it.

If a seller wants to try it on their own first then come to me, I can't change that, especially for those who need to do it first in order to understand the complexity. I would likely be one of those people if I wasn't in the business of real estate, myself!

I specialize in short sale transactions, which are some of the most complex sales to navigate through these days- no kidding, ask my husband when he sees me at the end of the day working through difficult "puzzles" in my head on how to surpass the new red tape imposed upon my client, but I get them through it.  Short sales are not for the weak at heart, but they are an act of survival, and an act of looking out for the client's best interest.

Trying to sell FSBO to avoid paying a commission will only complicate it down the road if the client comes to an agent desperate to get out of a potential foreclosure situation, having to face a short sale.

 

 

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Rainer
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Eric Villaverde
DoubleTree Home Inspection Services L.L.C. - Phoenix, AZ

Thanks for sharing your information with us today. I am seeing more and more FSBOs out there

Jul 21, 2009 03:30 AM #1
Rainmaker
139,938
Troy Jowers
Pogo Realty, LLC - New Orleans, LA
New Orleans Realtor

Unfortunately I see the same thing from time to time. One silver lining, however, is that I have been more successful than ever this year at talking FSBO's into paying at least a commission for me to bring them a buyer.

Jul 21, 2009 12:19 PM #2
Rainmaker
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Stephanie Jacques
Better Homes and Gardens The Masiello Group - Keene, NH
Stephanie Jacques Kleine

Yes, FSBO's are just as interested at selling as those listed with an agent. Anyone wishing to sell who's been through a few dozen showings and has a DOM of over 90 days is likely to be willing to pay for a sale!

Jul 23, 2009 05:27 AM #3
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Rainmaker
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Stephanie Jacques

Stephanie Jacques Kleine
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