Typically, homeowners sell their own homes because they want to save a commission, right?  What is not always understood is that buyers shop For Sale By Owner (FSBO) homes because they want to save a commission too.  Let me explain... 

Let's say two homes on the same street are, for argument's sake, exactly the same and worth $300k each.  One is listed with a REALTOR, and another is a FSBO.  Values of homes in any neighborhood have a commission built into the price, and when a FSBO says, "they have their home listed for $300k, so I'm going to sell mine for $300k," what they don't always realize is that the buyer will discount the price of the home typically by a dollar figure that is equal to or even larger than the commission that they would have paid to a REALTOR. 

A FSBO needs to ask whether they want to pay the commission to the buyer, or do they want to pay it to a REALTOR who will price the property properly, expertly market their property to the marketplace, be a tireless and unemotional 3rd party negotiator serving their best interests, and be there to handle any of the several hundred things that could go wrong throughout the entire process.  Most important though is the level liability that the REALTOR shields the homeowner from. 

One of my favorite things to say is, everybody pays a commission, it's just a matter of who you pay it to.

Arizona Premiere Living understands that homeowners sometimes want to do the work, but we urge you to consider the alternatives.  It's one thing to lose money by selling your home on your own for the reason mentioned above, but it is an entirely different situation when material facts affecting the sale of the home are not disclosed to a buyer - then it's a lawsuit, and no one wins.

Still not convinced?  If the above reasons are not enough to make you think twice about selling your own home, go to http://www.ArizonaPremiereLiving.com/ourServices.htm and take a look at some of the 237+ other things we do not only to earn a commission, but to protect the greatest financial asset you will ever own.  To find out more visit us online at http://www.ArizonaPremiereLiving.com, call Ben Bailey at 480/220-8022 (email him at Ben@ArizonaPremiereLiving.com), or call Jerry Murphy at 602/334-3757 (email him at JWMurphy@Windermere.com). 

Check out Jerry Murphy's blog at http://activerain.com/blogs/jmurph16, and thanks for stopping by. 

 

3 Comments on For Sale By Owner - Who Really Saves?

NOV
02
2007
Love your phrase, "everybody pays a commission, it's just a matter of who you pay it to"!!!
11:47am • #1

Thanks Dana.  I also used one the other day when I was told by another agent that they didn't get paid by the hour, to which I replied, "everybody gets paid by the hour."  Thanks for reading - I'll keep them coming.

4:03pm • #2

Hello Ben, great post and oh so true. In most cases the FSBO actually sells for less than they would have netted if they would have listed with a professional.

Scott R Turner Sr

http://www.TurnerTeam1.com

10:32pm • #3

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Benjamin Bailey

Phoenix, AZ

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Windermere Real Estate

Address: 34406 N. 27th Dr. #9 - 198, Phoenix, AZ, 85085

Office Phone: (623) 594-2300

Cell Phone: (480) 220-8022

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Arizona Premiere Living Real Estate Blog was designed with more than just Arizona real estate in mind; it was designed to help people get the most out living in Arizona.


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