My clients recently toured one FSBO seller's home here in Dane County (FSBO means for sale by owner). The seller's home has been on the market for a long time, which can be explained in part by language in the seller's ad stating she doesn't want any buyer agents involved in her transaction.
My clients would be interested in this house at a fair market price, but the problem is it is overpriced. I shared neighborhood market data with the seller so she could see for herself where her competition stood. I pointed her to objective data on our web site that shows over 15 months of inventory in her area.
But the seller doesn't like real estate agents, and so she's not interested in working with me and my clients on a fair market price. She's shooting herself in the foot, because she's choosing to exclude 85% to 90% of the buyers in the market - those working with an agent. If she was just a little more flexible and little more open-minded, she could have sold her home months ago back when the market was hot. Now if she ever does sell her home chances are it will sell for much less than what she could have sold it for back before the tax credit expired.
A small percentage of FSBO sellers are convinced all real estate agents are shady and concerned only about their commission. These are the ones that take their distaste for Realtors so far that they have no chance of succeeding. They will ignore market data and the realities of the market. And they are willing to re-list their property several times, each time ponying up a new fee for the right to see their home sit on the market - just as long as they don't have to work with a Realtor.
Some of the FSBO web sites out there put a lot of effort into marketing campaigns that are very anti-Realtor. It's a free country, but keep in mind many of these sites make money each time a seller fails and decides to re-list. And this is where I have a problem with this type of negative marketing. When the message is do anything but do business with a Realtor, whose purpose is this really serving?
It's great marketing, but it's not serving the purpose of the FSBO seller.
Dan Miller, Keller Williams Realty and www.DaneCountyMarket.com
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