That Smart FSBO Buyer: Part II
The following post was re-blogged by another agent. The agent suggested that the actions of this agent were in violation of the Realtor Code of Ethics and that he had "colluded" with the seller on price. That agent chose not to make those remarks as comments to this blog, but in a separate blog, without informing the original blogger of the repost with its close to slanderous comments.
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That Smart FSBO Buyer I am working on a theory about the vulnerability of people. My house was on the market for sale. When I had my business "For Sale" sign in front of the house, I got few calls. I decided to try a "For Sale By Owner" (FSBO) sign and sure enough, in the first day I got five calls. A FSBO is what someone does to try to save money for themself, not for the buyer. I just listed a house for $595,000. The comparable sales indicate that $495,000 would be more appropriate, but the owner, says that a FSBO just sold for $625,000 right up the street. Some stupid buyer thought he was getting a good deal by going this route. Fortunate for the $595K guy, he is a long time client of mine, so I am willing to work with him on an overpriced listing. I am thinking of putting FSBO signs at all of my listings, maybe I will even copyright the phrase. |
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Reply
In a court case an individual sued the MLS saying that he should not be excluded from using the MLS if he did not have a Real Estate Broker to list his house. The court sided in favor of this person. The one catch was that any user of the MLS had to be a member and had to go though the MLS training. This was the beginning of a new service, which was to list without representation. Since it is typically licensed real estate brokers who are members of the MLS, it was one of the same who started to offer the service. In Maryland, several brokerages now offer this service. In the listing it would specifically state that all dealings would go through the owner. The ruling has never been overturned nor challenged. The service may be provided for about $400. Legally and ethically these listings were FSBOs which were on the MLS.
In the referenced blog, not only was it acceptable, per the aforementioned statement, to be a MLS listed FSBO, but there was further reason why this was permitted, which is the fact that the owner and the agent/broker were one in the same. Nothing in the blog indicates that such was not disclosed. In fact, such disclosures were made.
To use a word such as "collude" to describe how an agent and his client discuss price goes too far and is closer to a violation of the Realtor Code of Ethics, than anything within this particular blog. Many an agent has taken an overpriced listing and some have taken underpriced listings, neither of which, by itself, is unethical. It is the seller who sets the price and not the agent. A home which was sold as a FSBO is just as viable as a comparable property as one that was sold through a MLS listing. It is in my client's best interest to be aware of these sales, especially when they can support the price which he would like to get.
For my client who wanted to list at $525, I did find an acceptable buyer. In fact for all of the listings which I have had with him, I have found acceptable buyers. In each case the Buyer had his own agent. Nothing illegal or unethical was done in any of the deals.
To use FSBO signs at all of my listings is a statement simply made in jest.
In fact, the entire blog was intended as a satire of the FSBO concept.
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