For sale by owner or FSBO motivations are usually different from that of Realtors. Many sellers prefer to go it alone avoiding Realtors and and try the FSBO route sometimes to maintain control, and sometimes because they could not find the right Realtor after several attempts. However, the statistics show that many FSBO’s fail to sell. Why? First and probably the most common is PRICE. Sellers don’t know how important pricing real estate is in the process of entering the “Naples for sale” market. Most FSBO sellers think that testing a higher price is the first step because they can always reduce price later. In essence, they prolong the entire sale period, and mistakenly lead buyers into caution about making an offer. Second, the buyers that make offers to FSBO’s are mostly bargain hunters looking for a good deal. FSBO sellers are not saving 6% because buyers already factor that Realtor commission savings into their offers. MOST IMPORTANT, most serious buyers are looking with a Realtor. And that brings me to the most important point: As a Realtor, would you show clients FSBO properties… of course not, how would you get paid?? Some of the more savvy FSBO folks have a little sense and advertise (cost $$) that they cooperate with Realtors, and there goes 3%. In the end if you save 1% consider yourself lucky. Now balance the 1% Realtor commission savings against the risk of failing to produce a buyer and selling below market. NOT WORTH IT! So my rant is finished and I hope I have helped some clear the mind of this FSBO foolishness.

 

1 Comments on For Sale By Owner | FSBO | Why NOT To Do It

JAN
09
2012
281,308 Points 4 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hello Buy Naples:

 

I'm on board with your premise, but believe you make an over reaching assumption when you state, "As a Realtor, would you show clients FSBO properties… of course not, how would you get paid?? "

A true buyer's agent has a written agreement with their client to be compensated by the buyer, if the seller offered compensation is low or non existent.  In Texas, we have a promulgated form that allows us to register a buyer with an unrepresented seller and reach an agreement for compensation, before we show the property. Finally, we could write compensation into an offer so it is clear who pays whom.

One could argue we should not show owner offered properties until they knuckle under and list, but my duty is to my client, so if it works for them, it works for me.
3:04pm • #1


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