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(Slurping Hot Black Coffee) The Active Rain Retreat With Brokers Around A Real Estate Group Camp Fire A Success.

By
Real Estate Agent with MOOERS REALTY ME Broker License 106759

The Active Rain brokers, agents, REALTORS rolled in with loaded mini vans, leased exotic cars, pickups with more than one non matching colored fenders, in a cloud of stirring, swirling dust.

camp fire Like being marooned with Ginger, MaryAnn, Gilligan, Skipper, etc this was a motley bunch. Road weary, ship wrecked in a box canyon away from cell phone reception, below real estate radar for any loved ones, bankers, lawyers, buyers or sellers to find, text, fax, call, visit. Transported to a place with nothing but dirt, cactus, a setting sun but a stool by a roaring fire with a steaming cowboy coffee pot.

Each agent, broker, REALTOR dutifully filed in a line, selecting the next available stool for this AR fireside chat. Today's topic without distraction was scribbled on a big white sheet of paper, propped on a rickety easel. Reading "Hunting, tracking, chasing the elusive FSBO (For Sale By Owner) real estate seller." Many agents whimpered how they would rather have a root canal or colonoscopy than visit, contact the FSBO. Not wishing to go near them. Keeping them away with ten foot insecuity poles.

Some species of FSBO using the tattered orange, black, white For Sale sign cock eyed in their front yards surrounded by weeds out of sheer frustration because after three brokers, agents, REALTORS, no spark, no sale.

Not many showings had happened. Nothing promised over and over actually delivered. Taking the marketing matter in to his own hands out of desperation. The property not selling because the first real estate agent, broker asked the seller what he thought the property was worth. Rather than showing him the market comparable sales mls data, competing property listings. Won the listing, no hope of a sale though with way way too many zero places in the sales price, the mls propaganda. Everything on hold, the property mold starting to grow here (Jimmy, throw up the 60 Minutes like stop watch graphic).

The second agent promising the moon, smiling confidently. As he claimed this, this and this incredible marketing difference between himself and the guy just peeling out of the yard with the Country 22 rusted sign hanging precariously from the back of his H3 sport utility. The one with the unflattering mustard yellow vehicle brand wrap that hurt your eyes like the sun if looked at directly. A year goes by, no sale, no calls, no showing and Broker number two who said he tries harder even starts avoiding the seller if he sees him at the local Walmart, local church bean supper, little league game, etc. Afraid of the seller he woo'ed to get the listing. (More tick tick passage of time sound) Broker three summoned by the seller when the listing expired on the over priced, under marketed soon to be FSBO home. The one with shelf life stigma growing like mold all over the place. Radiating an eerie glow to buyers, neighbors who wonder if the place is haunted, causing the stall, delay, pregnant property transfer pause.

The over priced property also causing a cancer in the real estate pricing community of sellers too. Other listing after listing presentations fielded the same remark from property owners that "if Zeke Grendell's place is worth that much, then double that figure when you scribble in the price on that mls listing agreement on my place." Other values out of whack because Zekester's shack is not worth that many zeros, commas. Because desire to bag a listing caused broker one to agree to any price. The second lady broker failing to show the market value. Further whispering sweet nothings in the ear of that seller by Broker three promising them what the owner wanted to hear but that was not a possible delivery in the local real estate market. More coffee? Some beef jerky? ( as the crackling fire winds down, a distant wolf howled under a full moon, star filled night of stars plastered twinkling on a sky of black velvet as cooler air rolls in.)

What would you do as the seller, property owner? Three years of real estate brokerage down the drain. Your faith in local real estate practitioners would be at an all time low after years of twiddling your thumbs, being in limbo.

All FSBO's are not just out to save a commission. They like most sellers, want to move on. Change addresses.

Need to sell. They take back the controls. If they are the variety that ignore your real estate valuation cma wisdom and state they want seven and eight times the real value, walk. No, run away and waste no more time on this avenue when your time is better spent with seller's that literally say "you're the expert, know the market". Maine, happiness is not out of reach here. We wrestle real estate a little different too. Not just wanting to list and hoping for a pie in the sky sale that can never happen. Who are you fooling when you star in that tragedy with all that time wasting, gut wrenching emotional ending drama?

I'm Maine REALTOR Andrew Mooers.

Comments (25)

Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Andrew....it's not typical that a FSBO will sell on his own....it's the brokerage community that sells it, sooner or later.....what I use to do is offer an MLS exclusive agency...they can continue to market it on their own and I will offer it to other agents through MLS....this worked more often than not....I only asked that they remove their sign.

May 19, 2010 02:01 AM
Terri Onigkeit
Keller Williams of Northern Colorado - Fort Collins, CO
GRI

Great Blog, what a fire, looks cozy, FSBO's most always use a Realtor in the end, they are worth going after.

May 19, 2010 02:10 AM
Kent Dills
Broker, Dills Real Estate - Bellingham, WA
Real Estate 817-495-8028, Bellingham, Washington

Great depiction and analysis of a "typical" FSBO experience Andrew.  FSBOs should definitely not be jeered or feared - they're really just looking for a good real estate consultant!

May 19, 2010 03:03 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Good post Andrew. FSBO's are potential listings like any other house. I guess the agent needs to have a proper plan that matches their personality to be effective.

May 19, 2010 04:07 AM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Andy, I very much like Lenn's wisdom. And the fact she "eats their lunch". I am seeing more and more crop up, and to be honest, based on the price they were when being listed with an agent, or multiple agents, I would say they are not realisitic. Oh well...

Great post, congrats on the feature!

May 19, 2010 04:16 AM
Josh & Dawn McKinley
Peoria, AZ

I've noticed that a lot of the FSBOs in my area are actually investors that are trying to unload their properties - most will have used one of the flat fee MLS services. Those are a tough nut to crack because the investors feel (or may) know enough about the process to do the work on their own, not realizing that there are probably better uses of their time.

May 19, 2010 04:37 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

FSBO's are simply trying to save money thinking that they can save the brokerage commission. They simply do not understand how a profesional broker can help them to get a better result on their sale.

 

 

May 19, 2010 04:46 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

There are also FSBO's that hook in to the top knotch marketing for a year, getting it exposed even though over priced to gain attention. Have the broker beat the marketing drum. The broker being used but at a way way over priced level they assume the position on, agree to. (Hooking agent, realtor, broker to property whipping post sound, lock of shackles click loudly in a painful way) Learning the value, how to stage, about the market, trends, how their place figures in, etc and then when listing runs out, try to contact past buyer who is in cahoots. This is the FSBO holding an appraisal for $100,000 but wanting $300,000 and all because he says "he's going to need it where he is moving," etc. Then tries to deal direct with past showing client all your advertising did generate, to test your carry over clause. Ah, the sport of real estate and dealing with all kinds of people and being a property locator / match maker, a Dr Phil, multi tasking genius in marketing all wrapped up. Tucked away like a slick Swiss Army knife, the best thing since sliced bread.

May 19, 2010 04:52 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Not sure if Lenn means that she 'eats their lunch' or eats them for lunch. I think the message is that you can bring a buyer to a FSBO and still get a commission. Sometimes it is a tough sell.

May 19, 2010 05:03 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Melissa wrote:  "it is a tough sell". 

I've never found it to be so.  Of course, I get a commission. 

What I don't do is compete with the owner/seller.  Buyer Broker status is disclosed at first face to face meeting. 

I solve their problems.  I turn their house for sale in to a Contract of Sale with a fully qualified buyer and I collect 3-4% of the purchase price.

When I say that "I eat their lunch", I mean that my skills inprice, terms, condition, property valuation, disclosures, inspections, title services, etc., are negotiated for the benefit of my buyer/client. 

My success and appreciation for FSBOs is based on experience learned over the years for how to let the seller know that, while I don't represent them, I can help them achieve their goal.  I don't try to sell them anything. 

Besides, I'm so nice, they just love for me to sell their home.

May 19, 2010 05:48 AM
Tamra Lee Ulmer
Arizona Resource Realty - Payson, AZ
NRBA ~FORCE~ Over 1000 REO Assets SOLD!

This is an excellent post! Thank you for sharing it. And it is indeed very clever and catchy!

May 19, 2010 05:59 AM
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

Hey Andrew,

Love the post today. THanks for getting it out to ust today on AR.....by the way, it sure is RAINING cats and dogs here in Seacoast NH....

Patricia/Seacoast NH

May 19, 2010 06:16 AM
Tom Ramsey
Century 21 Northland - Traverse City, MI

Great post on FSBO's couldnt have said it better myself!

Thanks

tom

May 19, 2010 06:20 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

FSBO's...the point of this slant for blog post was they are not to be feared, avoided. Their motivation in this guy's case was a way over priced property desire. Started with, continued with brokers, one by one inheriting something over priced. His expectations were too high but Joe First Broker asked him what he wanted for the place, what he would like to see. Heck, most sellers, you and I would love to get beyond top dollar. Even extra money to educate our four college kids, a new boat, car all accomplished in that above and beyond sale price justification, pipe dream.

Where they are moving, they need four times what this place is worth to make the move. Not how you arrive at, calculate real estate valuations. They become FSBO's out of poor handling, a combination of not being realistic. Each broker comes in, hackets the price the best they can and eventually one broker screams "timber" when it does sell in a pendulum less than it is worth fashion. From one extreme to the other and four years to burn with this "learner listing" each broker, agent one by one "cuts" their teeth on. The guy that does sell it looks like a hero or the FSBO feels like Jack Horner when he does let it go for a fraction to a local buyer. Mishandling, real estate malpractice by a practicing series of agents. "Three Stooges Real Estate...can I help you not sell your property?"

May 19, 2010 07:08 AM
Duane Murphy
Expert Real Estate Partners LLC - Appleton, WI
Broker- Owner-Real Estate -

I have yet to get the 'silver" bullet tactic for listing FSBO's. Persistence is probably key #1

May 19, 2010 09:40 AM
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

If they insist on over pricing I pack up and leave. It's surprising how many ask 'don't you want to list it?' and when I tell them no they seem amazed. Can't sell a overpriced turkey.

May 19, 2010 12:58 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

I agree they are not to be feared. Very few FSBO's are successful in selling it on their own. I recently heard a statement I agree with, "You can live in fear or in faith." Believe in your skills and scripts when dealing with FSBO's. Go get em.

Cal

May 19, 2010 03:01 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

This is a well-written post that draws you in.  It also makes a very valid poitn about the reasons sellers may choose to be a FSBO.

May 19, 2010 06:19 PM
Ann Hayden 636-399-7544
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Des Peres, MO
SelectAnn.com

Andrew,

This is a sad tale that is so true.....

Ann Hayden in Wildwood, MO

May 20, 2010 12:29 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

FSBO's also have to often get over the wedding aisle jitters caused when considering linkage with a broker for six months, a year of their life. They always wonder is there a neighbor that wants the place and over the years this cat, that couple had ooohed and ahhhhhed about their home and breathlessly said "if you ever want to sell". Or when the seller's barber, hair twister quickly offers her way way out of whack valuation on the place when he/she learns a sale is in the wind. Keep cutting, styling hair but leave the CMA to the guy or gal with the big R on their jacket, ride. And lastly, your parent's dying words were "don't let the place go son for less than 3.4 million". Because that is what it is worth to the family member, or they don't want it sold, etc and ruling from the grave kicks in as their last wish. I have had sellers. not FSBO's but sellers fool themselves in wanting to list for 8 times the value so they can say there....place is on the market, that'll shut the kids up that are whining since Mom died for him to move to Florida when he does not want to move at all.  Brokers, agents get used with seller smoke, glass, hocus pocus too when agendas need meeting and you're elected. If you let them harness you, play with you. There is a psychology current underway...and you have to get between the seller's ears, wear his mocassins to see where he is coming from, how you can help him real estate wise. Or not.

May 20, 2010 12:49 AM