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Selling Property Yourself – Some Examples

By
Real Estate Agent with Chicagoland2to4Flats.info

It's now possible to get property listed in the MLS for a low flat fee or perhaps even sell it on your own through Craig's List. But, without the help of a full-service agent, you would, in essence, be hiring yourself as your own agent. Here are some stories of people who did sell property for themselves:

•     I.        An owner in Roscoe Village listed on his own for 40K less than we would have.

(The moral of the story: not surprisingly, given his fire-sale price, he sold it immediately).

•    II.        There is an attorney who dabbles in development and then sells her own property, but she writes terrible listings, is too busy to accept all requests for showings, and, when she does a showing, it turns out that she's a terrible showing agent.

(The moral of the story: we hope she's a better attorney than a real estate agent!!!)

•   III.        A condo owner was promised, for a small flat fee, an MLS listing and marketing support. The trouble was two-fold: the firm he worked with by phone couldn't tell that his property was, in present condition, terribly staged, and the listing sheet he helped write was such a mish-mash that you would think the goal was to reduce the number of showings.

(The moral of the story: Not surprisingly, he suffered terribly long market time before finally throwing in the towel and hiring a good agent.)

 

And this is just the start of what you'll find at www.Chicagoland2to4Flats.info!!!

Patt M. Judd
First Realty Company - Cookeville, TN
Realtor - Your Cookeville Connection

Bill, I agree we don"t pretent to practice law so why should sell real estate. thanks

Mar 18, 2011 10:17 AM
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

Hello Bill,

You have some good examples of people who did not approach the FSBO selling process correctly.  However, many people do have the capability (or the ability to acquire the capability) to sell their property themselves.

The primary reason owners sell FSBO is they do not perceive the value in the traditional real estate commission compensation system.  It is high risk high reward for all parties involved.  Paying a commission to cover costs for expenditures on unsuccessful marketing efforts means the commission is more than the cost/profit margin to market/sell the property.  The seller or buyer not having any skin in the game upfront means the real estate agent/broker must get a higher reward when a transaction is completed. Simple risk/reward concept.

Alternative compensation systems, such as fee based services are being developed to meet such seller's needs.  Pricing can be addressed by hiring a real estate office to do a CMA or an appraiser to complete an appraisal. Options do exist.  Attorneys are also available to assist in the transaction and avoid potential legal mine fields. Alternatives exist to the traditional real estate commission compensation model and often result in significant savings to the seller (often the buyer too). Many in the real estate industry apparently do not recognize owners are fully capable of handling many, if not all, of the steps in a real estate sales transaction. Or they can hire for specific tasks and/or skills.  We do agree For Sale By Owner is not right for some sellers; if they do not have the commitment or skills to complete the transaction they should not try to do so, unless they obtain the needed skills by hiring for the task.

You mentioned the Flat Fee MLS options. My belief is the Flat Fee is counted as a broker/agent MLS transaction, which masks the FSBO charateristic of the transaction. There are more FSBO sales than many believe due to not being able to parse the data in enough detail.

The person with the wrong pricing could have purchased a CMA or gotten an appraisal.  The attorney who wrote a bad listing could have purchased your expertise in listing preparation. The condo owner could have hired a stager and asked for assistance preparing the marketing materials.

My main point - Offering FSBO's assistance in the process and providing an alternative pricing model will benefit the FSBO and the real estate agent/broker.

Mel

 

Mar 18, 2011 10:26 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Bill, congrats on being featured as Member of the Day on Active Rain :)

LOL at your third description of the person using the MLS-by-phone people. So true, so true. We see it here as well, and usually accompanied by no photos or very grainy, fuzzy ones, featuring close-ups of the toilet, the bed, and the cabinet in the kitchen...you get what you pay for.

Sharon

Mar 22, 2011 12:24 PM