These are the comical and possibly the worst of the FSBOs, the ones who send e-mails to agents announcing that their house is for sale and they'll pay an agent. I've gotten plenty of these. They make me laugh; they seem to think we can't see the contempt in them.

Pamela, I do agree with you....FSBOs generally have homes that sit on the market for a very long time and then end up netting less than if they had of listed with a REALTOR to begin with!  By having the 'save money' mentality, they end up spending even more and along with it time and energy.

Buyers prefer to buy through agents, not through the homeowner themself. 

Jo 

Pamela,

I get very similar offers from local FSBO's.  In the past, I've sometimes tried to educate them about the market, pricing, and other services agents perform.  But most of the time the bottom lines is how much money they perceive saving.  While in reality, with this market it's all the opportunities and money they are losing.

Maybe they'll wake up or maybe not.

It's amazing that many FSBO's are so uncooperative.  Even those who want our help to "bring a buyer," are usually difficult to deal with.  And, aren't we just fueling the FSBO mentality when we take our buyers to them.  My policy is: If everything else fails and I can't find my buyer a home....just maybe I'll sell the FSBO.

Hi David. WOW! :) Yes, I see where you're coming from. When they can't sell their homes they start to appreciate what we do. Thanks for being so honest in your comments.

Hi Jo-Anne! I agree completely. They do sit on the market for a long time.

Hi Gabe. I try to educate them as well. Most of them are very thankful for suggestions and end up listing with myself or another agent, but these most recent FSBO---wow! They think we do nothing. :)

I would like to see the stats on how many FSBOs fail, and then out of those that chose to FSBO, how many chose to do it again, regardless of whether or not it worked the first time.

Hi Roy. Well as far as stats go it would depend on your area....I have seen some somehwere that show in my area....more than 80% of FSBO fail and end up listing with an agent. I will look into that Roy! :)

I just met with a FSBO yesterday who had his house listed with For Sale BY Owner who charged him $3600 and did not get him one showing. The mulit-family was overpriced and got no advice on that. I sat down with him and reviewed our slow market, the cost of insurance, and the fact that he had one of the units unfinished was going to requuire some thoght and ideas. He was a young 70 years old but could see he was taken to the cleaners by FOR SALE BY OWNER. They got paid upfront.  

I got an email this morning from a FSBO with a link to his home website.  I had shown his house when it was listed with a local agent.  Now it is listed with an out of area agent (flat fee) and is will offer 3% commission if you add it to the price.  But his price is still to high.  I sent him a nice email just to let him know that the contract he had available to download was not our local contract and as such he might want to make sure that his "agent" provided him with the right one.  When he gets real maybe he will call another local agent :-)

This seems like a last ditch effort to get someone to come see their home. I'd say they're on the ropes and quite possibly ready for some help. Give them a few months and the tone will change or the house will come off the market. Thanks for posting the stories, though. It does get me a bit riled up and I'll have to go call on some FSBO's now. LOL

I normally do not give them the time of day. It is a waste of my time. I have from time to time called to see if they would entertain paying a commissions and their comment would be give me an offer and we will see. Then I do not show the home.

Home sellers make more selling through an agent than on their own. Having said that, I don't think you should paint all FSBO with the same brush. Most of them have no clue what a Realtor actually does and as such are not inclined to pay for a service whose value they have yet to perceive.

Yes these are the FSBO's who will later curse all Realtors because we did not bring them a buyer.  Well Da, you insult someone and they are not going to go out of their way to help you!!

In the above second situation I would be tempted to e-mail back the listings from the FSBO's neighborhood and tell them what the commission is on each, and then ask them how motivated any Realtor is going to be to bring any buyers buy under the FSBO's terms and with all the hassles that go along with trying to show a FSBO house.

                                                      FSBO=HELP WANTED!

Hey Pamela,  I expect that kind of attitude from FSBO's.  Itis usually because they have had an incompetent agent in the past, that it is just their nature,  OR that WE have NOT TOLD them why they are wrong in a way they can understand.  I have had a few of these calls and I explain that to them. 

I do not give them the false hope that I would actually consider selling the house.  :) 

Do they want you to remove your shoes and have your clients do the same then follow you around and make you look in every closet?

Then hound you night and day for the offer because the 'people really liked it'.

 Not understanding the buyers just said that to get the heck out of the overpriced house and are now wondering why you showed them the home in the first place.

Its amazing no matter what part of the country the fsbo is so many take on the same role. Perhaps Group therapy would work?

FSBOs should, to the extent possible, be avoided.  I have sold them, but not too often.  When I do sell one of them, I clean their clock.

A home owner has the absolute right to do that with their real property that they wish.

I, on the other hand, as a real estate broker, have the absolute right to follow my company policies and procedures and that includes setting the fee for my services.

Want me to sell your house?  My fee will be in the written offer and it will be paid by my buyer out of the credit from the FSBO to my buyer. 

I totally ignore what a FSBO says they will pay. 

Nor do I try to educate them.  That's agency level service.  I prefer that they wallow in their ignorance until they are ready to pay me to risk selling their house.

Very good post-I totally agree.

Thanks for sharing it.

Pamela,  Well presented post on this subject.  Yes, I suppose they do walk in and tell the hair dresser how to do the job ( and probably treat them just as rudely )  which might explain why there are so many bad hair-dos ouit there.

Not to psychoanalyze sellers but don't you find that many people who do not list their homes have control issues?  They don't believe the market about what the value of the property is.  They don't trust others to show the house. They think they can control the sale by being in the center. 

My experience has been some think by not putting it on the market not only are they saving money but they can not disclose defects, don't have to pay attention to what their competition has to offer.  They can call all laminate surfaces Pergo and Pergo "hardwood."

It works in some markets some times.

Wow, Pamela. I alwaysknow youhave the good local posts, but recently you're becoming FeatureGirl when you write to us real estat types...well done.

I really lile what Andrew had to say...this may be the right time to use your best persuasion and influence skills so that when the seller gives up doing it on their own, they call FeatureGirl!

Here is the Phoenix market where we have more than 50,000 homes on the MLS most days why does a FSBO think that agents will jump through the hoops they impose on showing and the percentage they will offer. Not likely. Move on ... a client will be able to find a home somewhere in the MLS group .. ya think.

I've got plenty of those calls and e-mails. I tell them that in this market, with the amount of inventory we have, I'll be selling the homes from the MLS, where I know there's professional representation on the other end.

That's amazing, I haven't had a FSBO contact me that way yet. I've contacted FSBOs about selling their homes and have been offered a low commission but not the other way around.

With higher inventory and houses taking longer to sell I hope that sellers are beginning to better understand the importance of working with a qualified real estate professional who is familiar with their area rather than trying to brave the FSBO route.  I think Christopher said it well when he said "Most of them have no clue what a Realtor actually does and as such are not inclined to pay for a service whose value they have yet to perceive."

I think there are many FSBOs out there who do not understand the amount of time and effort that real estate agents commit to education, market research, networking, advertising and negotiating necessary to successfully sell homes. I also think many of them are not familiar with statistics regarding home sales and FSBOs.  They probably aren't aware that the typical FSBO home takes longer to sell and sells for nearly 25% less than if it were listed with a real estate agent. Or that real estate agents are the #1 information source for buyers in a home search accounting for 81% of home sales compared to the 5% that are FSBO.    

Hi Everyone! I appreciate your comments and wonderful information. I think people just look at being a FSBO as a way to save money, but thats just not so. I have read all of your comments and will comment on them. Again thanks so much. The more we educate the public on what it is we do the less likely they are to try and sell their house themselves and fail at it. :) Thanks!

I have never had a FSBO contact me that way.  I did have a seller contract me who was listed with a discount company and only offering a small commission. 

At least those FSBO's are being proactive and trying to sell their property.  Gotta give them credit that way.

Bob Wilson your comment was removed. Why? You didn't have anything worthwhile to contribute. Make no mistake about this...if you leave a negative comment on here with no merit it WILL be DELETED. You won't get google juice from this post. :)

Well the FSBO just gave you a lead that you can use to get their listing.  As a LO and a person that sold 2 houses FSBO I loved it, and gets me into see FSBOs to work with them.  I can tell you this.  Many FSBO's do not know how to work with a Realtor or a loan officer.  They are willing to learn and want to sell their home.  I have found great ways of helping them and getting listings for Realtors, but they need to be willing to do things.  Just as I as a Loan Officer need to do things for the FSBO.

Do not do things for a listing, You will see more business come your way with that little idea when dealing with FSBO's

Hi Dan! Thats a good point. I have to point out here that these are just two examples. I have worked and helped many a FSBO and for the most part they have been nice and thankful for any information or kindness. They just have the wrong idea about the market and what it takes to sell a house. i dont' ever ask for FSBO listings. I ask for the buyers that come through their home. :)

Hi Eric. That is a huge problem. I'm seeing a lot of issues for those FSBO. I'm not sure if they didn't ask for help with a listing price or if the discount companies don't offer it or maybe they don't know how to get a correct price for a listing.

Hi. Cindy! Ahh..he will most likely end up getting an agent then. Thats one of the most common mistakes FSBO make.

Hi Andrew. Nope. They both just listed their houses...within this past week. So they are fresh on the market. :)

Hi Susan. I know a lot of agents feel that way. :)

Question for Lenn - What is the benefit of the procedure that you mentioned?  >>>  "What me to sell your house?  My fee will be in the written offer and it will be paid by my buyer out of the credit from the FSBO to my buyer.  Thank You.

Hi Christopher in my post it clearly states these are two examples. Noone is using a broadbrush. :)

Hi James! I emailed both of them and gave them some suggestions and explained the motivation or lack there of some of the agents will have in showing or not showing their homes. :)

Hi Chris! Exactly!! Great picture. :)

Hi Stephanie. My thoughts exactly. Thanks. :)

Hi Chris!! hahaha  Its just misinformation I think. They have all these sources telling them they can do it themselves and they see all these ridiculous infomercials telling them anyone can sell a house and make a profit and they try it. Live and learn. :)

Hi Lenn! You are completely right. I need to go back and read all of your blogs because you are always right on about these things. Thank you for your comments.

Hi Armando. Thanks! :)

Well, I think they "have to" try it on their own to so they won't wonder. I surely would leave them in the dust if talked to like I was incompetent.

Here is something interesting to think about. In war, we called the Germans Krauts, We had similar names for the japanese, and in Vietnam we also labeled them.

In Real estate we call them FSBO's.  Are they the enemy? Do we subconsiously go in with the attitude that they need us?

Fsbo's are just "Unrepresented Clients" lets approach them that way and maybe our results with them will change

Hi Bill! Oh my. Thats funny. Thanks for making me laugh. :)

Hi Maureen! Yes, I think you're right about most FSBO, but not all. I think they just have a skewed idea of what it takes to sell a home.

Hi Joey! Thank you, sir. I am just writing about what happens. Thanks. I appreciate your continued support. :)

Hi Bob and Carolin. I don't think they look at it that way, but they should. :)

Hi Lisa. I can understand that. :)

Hi Kevin and Monica I was really surprised...to say the least. :)

Hi Bonny. Thanks. That was some great information in your comment.

Hi Melina. I agree....thats why I mentioned I thought they were smart to contact agents to let us know, but being rude and controlling is never a good idea in any business practice. 

Hi Dave. I don't ask for their business....just the buyers that go through their home. :)

Thanks for all your great comments everyone. There is some great information here.

FSBO's are comical! I have a whole page dedicated to FSBO logic on my website and I continue to get comments on it. Check it out at http://www.empireteam.com/fsbo_for_sale_by_owner.php. Take care! RJH

I've never agreed with the notion that I owe it to the public to work for what I deem a substandard fee.  If a FSBO offers less for my services than my market rate, that FSBO lost a showing.  Sorry.  Anyone who would contend this is not ethical must run a non-profit organization, not a business.  I'll inform my clients of the property, and proceed to tell them that the seller refuses to pay my full wage (by the way, since when did one side of a transaction become standard compensation for putting together the entire deal?).  Only if my clients are insistent upon seeing the property at that point, will I show it.  At that point, they understand that I will be paid a substandard wage should they purchase it.  I will look to my client to make me whole as a last resort.  I have accepted less than adequate compensation before, but never from a FSBO.  Too much additional work and exposure when there is no agent on the other side ensuring that all disclosures have been fully and truthfully made, etc. 

HA HA HA!

I don't know about MO, but here in CA the market is too soft for fsbos to think they are all that!

Were you able to ever tell him the real deal, or is it not even worth it?

I like Davids first comment best. So true!

Good luck,

S

PS. Oh! I had a computer glitch and I dont think this posted the first time.

Not all FSBOs behave that way of course, but we've all met a few who do.  FSBOs who behave badly are being enabled by the news media.  They are being enabled by a market that sends them the message that they are completely in control.  Power (or the impression of power) corrupts.

Interesting coincidence..I just uploaded a post on the subject of how we perceive FSBOs and how they view agent attitudes towards them.

Pamela and Chris: FSBO = Help Needed.

Don't they listen to the same news broadcasts as our buyers? 

Hi Robert! Thanks for stopping by. :)

Hi Paul. Great points you've made. I don't think they view it in those terms they just want to save some money and sell their house.

Hi Sarah! Thanks for your comments. I gave them information like I always do its just these two FSBO think their homes are worth much more than they are. They are too emotional. :)

Hi Eric. I have been spoiled I think......these are the first two I have met like that. I just think they are being unrealistic. The price has to be right! You can't sell it for what you want to get, but what its worth. I did CMA's. They want more than they will get. :)

Hi Roberta. I just think its emotional for them. They aren't looking at it the right way. Thats one of the many reasons you hire a professional.

Hi Pamela, I have found that the majority of FSBOs I speak with have had a bad experience with a REALTOR(R) in the past. I usually just try to be there for them to answer any questions for them or assist them if I can. I normally end up with the listing later on when they are not successful. This is certainly not the market to try it on your own. One of the most important things we bring to the table is getting sellers to detach from their home emotionally. Once it's on the market it is no longer a home, it's a house and has to be treated as such in order to sell.    

Hi Bryant. I agree completely. I have never received emails like those before. Usually I help fsbo and give them free information. Thanks for your comment. :)

Careful!

We sold our house B.O. a year and a half ago, because of the terrible economy, and even worse seller's market in Michigan (we had NO equity after 5 yrs. and 20,000 in improvements)....Honestly, we COULD NOT AFFORD to pay a realtor.

We updated like crazy, and priced our home fairly. We had an offer in 2 weeks from the first people to tour it! In the end, the buyers' agent was truly helpful, and we were sooo grateful that he didn't exclude us from his list of "to shows". We threw in an extra 1% for him, which we couldn't afford, but we felt we needed to thank him!

Our friends, on the other hand...hired an agent, put all their stuff in storage, priced their house too high (per the realtor) and sold it after a year+. The same realtor tried and tried to convince us ours would not sell, and we were asking too much! hmmm....

Now I honestly believe a GOOD realtor is the way to go...

It is a two way street, guys!

Thanks,

Susie

Hi Susie! I touch on what you just mentioned in your comment...the right pricing. It doesn't matter if its listed with an agent or not. if its over priced the house won't sell. I gave two examples here and I think a lot of agents responded with their exasperation. :) I understand that. I have no problems with FSBO I think in any area we should have multiple options and selling your home yourself is one of them. Thanks for your wonderful insight and letting us know of your experience.

Pamela...

I must be off my rocker :)

I love FSBO's. In our market they are sales waiting to happen :)

TLW...ROAR!

There's a flipside to the argument of not being able to afford a Realtor, Susie.  I would assert that you cannot afford not to use a Realtor (pardon the double negative).  Without the full exposure to the market and sales force that an agent provides, how can you obtain the highest price that the market will yield?  A good agent more than pays for him/herself.  The last figures I've heard quoted reflect an average sales price that is 11% higher for properties listed with an agent versus FSBO.  I don't know about you, but I'd gladly forego 5-7% in savings for an 11% higher sales price any day. 

I read several comments, and seems like the tone is the same. Which is understandable. This is how we see it from our corner. It is funny to read that "FSBOs are uncooperative". Well, they are FSBOs in the first place, because they do not want to be cooperative.

I do not want to become a target of criticism, I am neither for nor against anything here. All I am trying to say is that the mere number of FSBOs are trying to either eliminate real estate licensees, or limit them in one way or another is indicative of something. FSBO is our child, we create and feed them. If all the realtors would be doing a terrific job all the time, there would hardly be any FSBOs at all. So many FSBOs simply mean  that not everything is perfect in our real estate kingdom.

How many of you would utilize the services of a realtor, if you were no longer with your company? And how many would decide to do it themselves?

How many of you are running into incompetent, indifferent, or otherwise not great, not good, not even average realtors? You notice that, but FSBOs also see that.

The incredible growth of the number of realtors brought this to the industry. On the other hand, there is a lot of tools that were not available to general public before. You can go to Zillow to check for prices, and there are numerous other sites providing valuable information. Do you really think that the name Reator just in itself a well spent 6% (or about it) of the selling price?

I willhave hard time saying that I would always choose a realtor. I would cautiously say that I would use a terrific realtor, and my only advantage at this time that I know how to find one. THis is the biggest piece of information so far unavailabe to consumers. FSBOs are not idiots, when they will figure out how to find a really good realtor, they will. The are arrogant and not cooperative right now, because they feel that their chances to get a terrific agent are slim. So, they are not happy. And they take it upon us. But who else can they take it upon anyway?

I guess, this is an interesting topic, and I swear I would work on it and post on my blog.

Hope I did not irritate you.

Hi TLW! You off your rocker??!! :) I must be too...I like FSBO and have never had a problem I have just never encountered anything like the two mentioned above. Thanks for your comments. :)

Hi Paul. I agree....an agent gets you more and is wirth every penny. :) 

Hi Jon! Great response. This is what I'm looking for...we don't all have to agree, but I do want ideas, opinions, suggestions with merit and everyone on here has delivered. You did not annoy me...thanks for your participation. :)

Well I have a friend who was a FSBO and sold the house for more than I ever thought it was worth.  Now, even though she did have problems with closing the deal, other friends have decided that they will be a FSBO. It's follow the leader and I am trying to break the cycle.....

I enjoyed your post and David's early comment. 

A fsbo who contacts agents is almost ready to list... they realize they can't sell their own home, and they're reaching out to the professional community.  An agent who reaches back, treats them with respect, and firmly asks for their business just may get the listing. 

Hi Carey! It may depend on the area. Here FSBO do not do so well. Most cannot sell their home on their own.

Hi Margaret. Both of these FSBO's just put their house on the market. :) But in most cases I think they probably do reach out when they realize they need help.

Whats wierd is I get FSBO's annoyed about commissions with very cheap houses.  Someone has a 90k house and wants to pay 1.5 percent to a buyers agent.  And they think agents are falling over themselves to collect the 1.5 commision on the 90k house as well.

I am pleased to be a Buyer's agent and not concerned about trying to convert a FSBO but I do laugh when they come begging and then throw themselves in the way of anything good happening.  If my buyer wants a FSBO house I will do what I can to help them get it, I will also dictate the terms that I am willing to do it for because without representation on the sellers side I think there is more work for me to do in order for my clients to have a safe and good transaction close.

I left a FSBO a voicemail and email message to find out how much she was asking for her townhouse unit.  Her boyfriend called me back a few days later to dictate the terms.

Not only was it priced $16K over the the same model for sale on MLS just 8 doors down, he wouldn't disclose the co-operating commission (i.e., "to be determined") and he only guaranteed a 24-hour "exclusive" (i.e., seller wouldn't pay commission to co-operating brokerage if buyer approaches with an offer after the 24-hour period).  

I had a really bad experience with a FSBO who contacted me through an ad I had on the internet. He was listed with a .com company and was listed on the MLS as offering 1%. That should have scared me off, but he initially seemed nice and said he wanted to work with me. He also told me he had bad experiences with Realtors in the past and he previously sold a home on his own for more than his Realtor said he could get. That still didn't scare me off so I did a CMA for him and it came out $130,000 below what he was asking for his home. I told him and he didn't care. He said that if someone wanted to buy it, they would pay his price. (OK). SO I told him about mortgage appraisals and not being able to get a mortgage if it didn't appraise. He said then, they could get a mortgage for what it appraised for and pay cash for the rest (OK). I told him nobody would do that once an appraisal told them it was not worth what he was asking. Later, he left me a message calling me a (insert insult here), and a thief and liar. He said the "bank" told him differently. I never contacted him again. I don't know if he even ever sold it because I never wanted to check because I was so mad I was duped so easily. Obviously he was looking for a free CMA. He should have just told me that.

I showed a FSBO once because my client went to the open house and she really wanted to get it. I called and asked him up front for 3% and he agreed. I showed her 3 other houses that day and she bought one of the others. The FSBO called me for feedback and seemed very dissapointed. I almost asked if he wanted my help because he was so nice. But I was so burned from the other that I didn't touch it.

However, the majority of FSBO WILL eventually list with a Realtor, why not me. SO I will someday look into them.

I, too, am getting more email from FSBO's. One has even thrown a bar-b-que complete with boat rides from his lakefront home - just for Realtors.  On the rare occasions that I call to setup a showing, I make it clear that I need a signed commission agreement before I bring a buyer to the property.  This 'extra' trip is a good reason to ignore private sellers on its own, especially with such high inventory levels.

Hi Ki. I think most people want to save money and they look at our commission as ridiculous. What a lot of people outside of the real estate business don't undertand is we don't get paid unless your house sells. All that marketing, gas money, advertising, etc. Comes out of our pocket and we don't make it back unless we sell that house. :)

Hi Darrell. Thanks for your comments. :)

Hi Anthon. Thats a shame. That person didn't want to deal with a realtor and instead of trying to learn something and possibly be brought a buyer they made sure that wasn't going to happen.

Hi Stacey. I'm sorry about that. I have heard a lot of stories like that and I'm sorry that happened to you.

Hi Robert. Oh a bar-b-que. :) That sounds interesting. Thanks for your comments.

I have had three FSBO listings in my time.

The first was found by an expartner, who told them we could sell it for what they wanted.  I did a CMA, and recommended less, they insisted we try for the higher price.  It was my first listing, and I wanted to be on the board, so I took it, letting them know we'd have to lower it after a month.  We did open houses every weekend for three months, no joke, not one weekend passed by. After 60 days, they still didn't want to lower the price, they wanted us to lower our commission. They finally agreed to lower it about 10K(it needed 30K less) and then got angry at us for not selling it in the 2 weeks before we lost the listing. They had bought a new home that was nearing completion. And they went to my church. They listed it with another agent in a different office, same company, for 30K less and a full 6% and it sold in less than a month. 

The second FSBO was an old school friend that my expartner also found while out farming. Again, listed it $30K too high, and the house was geared towards a young, dark sort of buyer.  Not a lot out there.  There were gargoyle lamps out front.  I thought they were cool, but needed to come down, as did the s and m pictures. Lost that listing too.

The third FSBO was impressed with my color flyers and marketing materials we left on the counter at his house. We listed and sold that home because it was priced perfectly.

Would I ever work with FSBO again?  Maybe, but as of now I haven't gone out to get them.

Hi Amy. I think thats the problem a lot of the time. Price. If a house is priced right theres a buyer for it.

There's no law that says you have to take a listing!  I like to think that my job is to get properties sold, not get properties listed.  Many agents think a listing is what it's all about.  Motivated sellers - or buyers - is what I'm *always* in search of.