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A seller who is her own worst enemy

By
Real Estate Agent with RE/MAX Preferred, Madison, Wisconsin

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

Kellie Morrissey
Keller Williams Realty Success LLC - Littleton, CO
CO Realtor CRS, GRI, CDPE

My heart goes out to the FSBO.  The number of homes that do get sold by FSBO is so low I don't know why any seller would consider this as an option.

A lot of time I provide information on how to short sell a home to the FSBO.  I have found that if they are trying to save money it is for a reason.......

Jun 17, 2010 11:57 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

This seller will eventually lower the price to sell. However as one who gets paid by commission it is an issue with me...not the primary one but I am not a charitable organization!

Jun 17, 2010 11:59 PM
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

That's why most realtors will actually list thier own property. We know it's just smarter. 

Jun 18, 2010 12:00 AM
Don Spera
CR Property Group, LLC - East York, PA
Serving York and Adams County, PA

Dan, she has created a major stigma.  If she was only realistic and put the shoe on the other foot if she was a Buyer, what would she expect.  By not allowing a Buyer Agent, it automatically puts up red flags, and make your people wonder what else she may be trying to hide.  In this case, apparently one bad apple (Realtor) did spoil the whole bunch in her eyes.

Jun 18, 2010 12:03 AM
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Dan, if the property is over-priced, the seller doesn't want to work with agents AND is unwilling to educate herself on the real market conditions, maybe she is just wanting to show off her china collection to complete strangers!!! LOL!

Jun 18, 2010 12:08 AM
Richard Thomas
Fathom Realty - Dunkirk, MD

This seller will work with a Realtor some day. It's obvious to me and you she won't be able to sell it on her own just not obvious to her yet.

Jun 18, 2010 12:30 AM
Sam White
College Station, TX
Integrated Marketing - Bryan College Station,

It's amazing the number of sellers walking around with wounded feet and homes that won't sell. Oh well, she showed you!

Jun 18, 2010 12:41 AM
Pam Turner, REALTOR®, e-PRO®, SFR
Century 21 Belk Realtors Dalton GA - Dalton, GA

FSBOs aren't very receptive to agents where I live either -- although most of them wind up getting listed. Guess they just have to try it.

Jun 18, 2010 01:02 AM
Anonymous
Sarah Kissel

Dan,

I've represented myself in two home purchases and sold one (albeit to a buyer represented by an agent, as I have no problem with this). I know a few really decent people who are realtors and can understand the need to use one if leaving the area quickly or not feeling confident with doing one's own research and paperwork. Unfortunately, I meet realtors who do an incredible disservice to their clients while charging a really high rate for said work.

Consider our most recent experience. Hours before an open house, my family decides to look at the property from the outside to see if it seems worth returning. We've seen photos on the realtor's site, the price has just dropped sufficiently below assessed value, but we haven't really been interested in what we've seen. The owner notices us looking and offers to let us see it now if we can look beyond a little untidiness (which we assure her we can).

She is warm and friendly and honest. She knows tons of history about her home and is very specific with the age of the roof, the home's status on updates such as windows and insulation and we find that her genuine enthusiasm for her home plus her insightful explanation of optional future projects that she's considered to be helpful and really excite us about her home.

We ask for a second showing which her realtor runs the next day because we are that serious. Here's what we get when we ask serious questions: A claim she doesn't know, a claim that contradicts her client's information (even telling us that it's what the client has told her -- and her client's information is less flattering to the house), but she follows us around as we inspect windows, doors and outlets to tell us about how she would use the house if it were her's and don't we think the rooms are pretty. She is a waste of space, annoying us and frustrating us during the limited time we have to take the second look, possessing no information that is of use to us. She even gives us a marketing booklet for the property that contains a picture that is not of the client's home.

What's a shame is that this is not the first time we've encountered this. How many homes we've looked at and not proceeded on because we were so turned off by a realtor. This house may not come to pass as well as she has told us that she'll insist on us listing with a real estate agent as a part of the contract. Wow, what an incredible disservice she is doing to her client and for an extra $25,000 out of her client's pocket.

I know there are good realtors. I know there are people who need their services. But unfortunately there are too many who frustrate the who process of real estate transactions at a great cost to their clients both in real money and in loss of potential buyers as they are the most unattractive aspect of the property itself.

 

Jun 27, 2011 03:28 PM
#9