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"Signs" of the Times

By
Real Estate Agent with Signature Real Estate

I couldn't help but notice this morning (along my regular route to and from school and daycare) the increasing number of homes for sale by owner. The sellers have employed a variety of signage ranging from pre-printed generic signs from the hardware store, to hand-written ones with an illegible phone number, to those of a popular fee-based FSBO website. So I wonder... What exactly is the motivation to sell by owner? And why are there more every day?

More and more sellers are choosing to go it alone. Logic tells me that in a market as complex, and challenging as the one we are currently experiencing, that now more than ever would be the time to rely on a professional. But when finances are stretched and times are tough most sellers focus solely on saving a commission. Unfortunately, in their desperation they are often missing the big picture.

 The reality is that even with paying a Realtor's commission sellers typically come out in much better standing than selling by owner. When you have so much at stake, why risk losing it all just for the illusion of saving a little money? Hiring a professional should be seen as an investment in your peace of mind, as well as the protection of your interests and equity.

 The economic climate and barrage of negative news on housing markets from national media outlets has jaded buyers. Buyers often make the mistake of misunderstanding the difference between local markets and the national market. Our local market in the Cedar Rapids area has remained steady. Home values have been maintained, and foreclosures and short sales do not make up the majority of our MLS. But because buyers have been convinced that all sellers are desperate and have over-priced homes, sellers are more vulnerable than ever to unscrupulous buyers looking for a deal.

 The best way to sell your home and prevent an infinite number of complications is to hire a trusted professional. We understand that times are tough for many people. And we want to HELP you! Greed has no place in today's economy. Any good Realtor will work with a seller who has financial restrictions to come to an agreement that will satisfy everyone. It is in our best interest to facilitate home sales and prevent short sales and foreclosures, as this is OUR community, too.

 Is it fair to say that for sale by owners are hurting the housing market? Quite possibly. There are a number of variables involved in a real estate transaction, and when too many mistakes are made, it can begin to affect the local market. Certainly there are successful home sales by owners who have the time necessary to market a home and the knowledge or resources to take care of all of the legalities. The hardest part of an unsuccessful for sale by owner may be knowing when to turn it over to a professional. Waiting too long can put home owners is desperate situations which can lead to less than desirable results.

Posted by
 
  
515-402-9435      
wanda@realestateconcepts.net
 
Licensed to Sell Real Estate In The State Of Iowa
 
Oh, by the way.... we are never too busy for your referrals.  If you know of someone 
who is looking to buy or sell a home or needs help from a real estate expert, please let us know.  
We will treat them like gold!  - The Greif | Augspurger Real Estate Team    
 
RE/MAX Real Estate Concepts      8020 Douglas Ave. | Urbandale, IA  50322

 

 

 

Jason Potrzeba
Home Loan Investment Bank - Warwick, RI
Senior Account Executive

Hi Wanda,

I've shared some commentary on this subject in the past. I had begun to notice many For Sale by Owners signs showing up. What I also noticed was that over time, these signs would after a while change to a listing agents professional sign, And then you know what? Eventually I'd see the "sale pending" or "sold" rider sign.

I think some of the homeowner's just need to get a sense of how much work an agent puts into getting their house sold and sometimes they don't learn this lesson until they experience failure with trying it out themselves first. 

Jason

Feb 22, 2010 03:43 AM
Wanda Greif
Signature Real Estate - Urbandale, IA
Connecting Buyers and Sellers

Thank you for the comment Jason!  I agree with you!  Most of us don't want to learn from another person's failure. 

Feb 22, 2010 05:45 AM
Mike Gillingham
Eastern Iowa Inspection Services LLC - Walker, IA

Hi Wanda,

I couldn't agree with you more that a good Realtor is a great asset in toady's market and folks tend to get the national market analysis mixed up with our local markets. We are blessed in that we have been insulated from what has gone on in other parts of the country. Thank Goodness!

Feb 23, 2010 01:43 AM
Wanda Greif
Signature Real Estate - Urbandale, IA
Connecting Buyers and Sellers

We are fortunate Mike!

Feb 24, 2010 02:49 PM
Anonymous
Not a Realtor or trying to impress you like these other tools

Laughing my butt off.  I couldn't disagree with you more.  There is no justification for all the profit compared to the work or education involved selling a house.  Also, there is no more liability selling yourself vs represented.  That is what attorneys are for.  There should be no reason realtors should make $5K-$15k for sticking a sign in someones yard, placing a picture on their website and showing up for two hours on Sunday.  I will save my $12K and take my chances especially experiencing some of the realtors out there.  Maybe that is why you are seeing a surge in FSBO.  There is no reason to make as much money as they do.  If the cost to sell was more reasonable maybe more people would consider it.  Sellers are learning about the huge profit and scam that it is.  Maybe you should learn a new trade.

Feb 25, 2010 10:07 AM
#5
Anonymous
Angie Ungs

You should read the previous entry, Did You Know Realtors Work for Free?!! It will help clear up your misunderstandings associated with how much realtors actually earn from a listing. I think you'll also be very surprised as to how much is costs to actually market a home successfully.

While I can't speak for other brokerages or agents, what I CAN tell you personally is that Coldwell Banker Hedges Realtors in Cedar Rapids, IA incur a lot of costs for marketing, adverstising and put in numerous hours to insure only QUALIFIED buyers submit offers, that the increasingly difficult financing goes smoothly, and that a third party negotiates the terms in order to help make it a less emotionally stressful process.

I've seen first hand the negotiations between a buyer and for sale by owner and they were much more time consuming, difficult and (not to mention not even totally legal) than had a professiona been facilitating the transaction.

Rather than insulting professionals dedicated to maintaining the integrity of our local real estate market, you would be better served to educate yourself and prepare to do your own sale with the most integrity, knowledged and assistance that a non-professional can muster. Good luck!

Feb 25, 2010 11:03 AM
#6
Wanda Greif
Signature Real Estate - Urbandale, IA
Connecting Buyers and Sellers

Dear Not a Realtor,

It appears that you were disappointed by a real estate professional in the past.  Join the club.  I'm sorry that happened. 

I wish all I had to do was sit in a house every Sunday and post a few pictures on the Internet to make the 12K you mentioned.  I'd probably only get a 4th of that minus my marketing costs to sell your home.  As mentioned by Angie, read the previous entry.  I've been working for free all month.

I sincerely hope you do sell your home for sale by owner.  You will have more money to put down on your new home.  I can find you an excellent Realtor in your area.

All the best,

Wanda

Feb 25, 2010 01:28 PM