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Why FOR SALE BY OWNER Hurts The Seller's Bottom Line

By
Real Estate Agent with NEPTUNE REALTY 0225-075558

It is somewhat understandable why homeowners sometimes want to attempt selling their home themselves, they think that if they sell their own house, they will save the real estate commissions normally paid to the professionals.  The truth is that in most instances, they still need to pay the buyer's agent if they want anyone to see their house and often they are agreeable to that idea.  This uninformed seller thinks that with the internet and their digital camera, they can do their own marketing to attract buyers. A few of them actually have the resources (time, tools, skills) to produce adequate marketing materials - but rarely do they have the market penetration to effectively reach their target audience and the seller eventually lists their home with an agent to get the job done.

But here's what they overlook in the internet age.  Many of the consumer oriented websites report to the buyer how long a house has been on the market.  If the homeowner attempts to sell it "on their own" for just two months, by the time their property hits the market with agent advertising, it appears stale because sites like Zillow reveal that the house has actually been on the market for several months.  A house that has been on the market without selling makes buyers think, "What's wrong with the house?" Consequently, the buyer thinks the house is overpriced, the seller is cheap, and it encourages lowball offers if any offers at all.

A skilled REALTOR may be able to overcome some of the damage the seller did prior to listing the house with a professional, but the easiest problem to overcome is the one that never comes up in the first place.

Posted by

Search the MLSDrick Ward, Realtor and Broker Associate    757-575-5156

Neptune Realty - Virginia Beach, Virginia

 

Contacts Information 

Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

It's true...and that doesn't even start the conversation about the time and trouble.

May 09, 2011 06:12 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Drick,  Sellers many times are clueless about the realities of the market.  I've also noticed that unrepresented sellers' per centage went down again this year.

May 09, 2011 06:18 AM
Drick Ward Property Management / Broker Assoc
NEPTUNE REALTY - Virginia Beach, VA
"RealtorDrick" - Experienced Representation

Karen and Bill - as agent's we've always known that FSBO sellers are missing out on more offers and higher prices, but I wanted to alert them to this hidden danger that they may not have realized.  Thanks for the comments, hopefully we can get more sellers to realize the value a Realtor brings to the transaction.

May 09, 2011 06:26 AM
Andy Capelluto
International School of Staging - Seattle, WA

I often come across this situation when owners call me in to consult on home staging.  I'm always relentless in trying to convince them to call in an agent.  I can't tell you how often i've seen the home not sell and be taken off the market.  It beats me why they do it - i find them penny wise - pound foolish ...

May 09, 2011 08:48 AM
Drick Ward Property Management / Broker Assoc
NEPTUNE REALTY - Virginia Beach, VA
"RealtorDrick" - Experienced Representation

Andy, the other part they may not realize is that if their home is off the market for 25 days then listed with a professional, the tracking websites like Zillow will report that it's been on the market straight through - as if there was no interruption.  It really hurts their chances of a sale and certaily hurts their chances of a full price offer.  Thanks for the comment.

May 09, 2011 11:00 AM