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Your Home Expired Now Your A FSBO!

What the heck is going on out there...It seems like every where I look there are FSBO's sprouting up all over the place like spring flowers!

What is really interesting to me is most of the FSBO's lately are listings that have recently expired.I know homeowners are frustrated with the market, why wouldn't they be...but do many of them really know what they are getting themselves into?

Don't misunderstand I'm not complaining.In fact, if you think you can sell your home without the help of a full time licensed professional then I'll be your biggest cheerleader! I just hope you understand its more than just sticking a sign in the lawn and placing an ad in the paper.

You see in the past FSBO's and I have had a great relationship. I have helped many through their transactions by answering questions or providing them with forms they didn't know they needed to have. Yes, I have worked for free!

Why would I do this, simply because I want to see you succeed! Real Estate is a complicated business, many do not realize this until they try to do it themselves. But what bothers me about today's FSBO's is most of them take on this challenge because their expectations are not realistic. Simply put, PRICE!

I know this is not the case with all FSBO's, but the ones that stand out are the ones that have recently expired and were over priced anyway. I will admit I have become pretty picky about which listings I will take, its nothing personal just business.

Most buyers are looking to negotiate a deal, I suspect this could make it difficult for some FSBO's to successfully sell in today's market. Considering Buyers will subtract the commission you are saving off your asking price...and thats just the beginning!

Best of Luck!

P.S. If you have questions please don't hesitate to contact me.

Posted by Suzanne Sands-Somerset, MA Real Estate on 04/08/2008 09:27 AM

Comments (39)

fsbos, buyers, homeowners

Originally posted at: Suzanne's Somerset Real Estate Blog: Your Home Expired Now Your A FSBO!

This post has been included in Massachusetts Information
Post is included in group: Realtors®
Post is included in group: FOR SALE BY OWNER - MARKETING(FSBO)
Post is included in group: New England Professionals

39 Comments on Your Home Expired Now Your A FSBO!

APR

2008

Suzanne - I'm not sure of the validity of it, but I heard a large percentage (something like 90%+) who sold their house by FSBO would not do so again. Hmmm.....

Suzanne, its also interesting to see the DOM stats with FSBO's. They on average take longer to sell and sell for 16% less. (Causation and correlation at play I think- all based on what you said "price".) Thanks for your comment on my blog!

Suzanne, FSBO's in my area typically undertake the job because as you surmised they don't like what the pro's are telling them. The homes are priced high so success is hard from the start. Add to that the fact that many buyers that seek out FSBO's tend to have some of their own motivating issues. Makes for a difficult transaction when the emotional and financial considerations are all mixed together.

Hi Jason,

It wouldn't surprise me, the majority that I have dealt with have told me they would never do it again. :)

Hi Jeff,

You are too cute (yes, you look good on top of the mountain!) Some will learn this quickly, while others will attempt to sell on their own and potentially lose $$$. Thanks :)

Hi Dan,

I suspect that is also part of the reason, there seems a lot more out there right now. I do have to admit I admire the ones who can pull it off successfully.

Suzanne, I always liked working with FSBO's. By the time they've had their home on the market for at least a year they're worn out and over it. Even knowing the market, I think it would be hard to sell my own home...I'm too attached. I would be glad to hire someone to do that for me...yes, me..a REALTOR, would hire someone to sell my own home.

Hi Linda,

So nice to see you! I like FSBO's and always want to help when I can, some just need to give it a try. You are funny, I completely understand that one! :)

I like FSBO's. I will also give them the tools, give them my support, root for them and wait for the call to list it.

Some succeed, when they do, I applaud them. Many don't. when they don't, i'm a shoulder to cry on and sell the property.

Like you, I have worked for free as well.

Suzanne...

I don't think many of them know what's ahead of them.

If they did...Well...There wouldn't be a FSBO sign in the yard :)

P.S. I was thinking about this topic the other day and find myself wondering if we'll start seeing more lawsuits as the result of Seller's and Buyer disputes.

TLW...ROAR!

Hi Chad,

They will remember you when they have another real estate need in the future, now thats the best kind of PR I can think of! Thanks for stopping by. :)

TLW,

They don't realize how much time we spend behind the scenes putting out all the fires to bring it to a successful closing. They see the glamour and think its easy!!!! :)

They will remember you when they have another real estate need in the future or they will remember you when they get tired.

People always think staging seems so simple, too.

Suzanne, well said my MA friend. There's a lot of effort and work that goes on behind the scenes that's not mentioned and often taken for granted.

Hi Kathleen,

You are absolutely right! Btw, I don't think I could ever do your job....that my friend is a gift! :)

Hey Ray,

I think its because we do it so well it looks easy. But ask a FSBO who has made it through the entire transaction they usuallly tell me they could never do my job! Thank you :)

APR

2008

In my experience FSBO's fall into two main categories. You have the people who have the time and energy to get the exposure their home needs to sell. They price their home right (typically 6% less than listed homes) and they welcome buyers agent participation. Then you have the Agent haters that put on their ads, "NO AGENT NEEDED", or "PLEASE NO AGENTS". These ones normally stick a sign in the yard, with flyers in a zip lock baggie (yes, I've actually seen this). Just my experiences!

Hi Ben,

I would have to agree with that, I like how you phrase it "The Agent Haters" LOL! Thanks Ben! :)

Hi Suzanne~ They are popping up all over Western Mass too! Pretty gutsy homeowners in this market! I love offering my assistance/knowledge/forms to them as well. It can never hurt to build a good relationship within your community!

Hi Nancy,

You got that right, it does build great relationships! Thanks :)

I just convinced a FSBO if she finds a buyer to CALL ME. I'll write up the offer, get them to the bank and move her through to settlement for a flat fee. Of course, if she doesn't find a buyer .... I hope to nail the listing!

Hi Erica,

That's awesome, I hope it works out for you! :)

APR

2008

Hey Suzanne....I pretty much agree with you all the way, EXCEPT the "Why would I do this, simply because I want to see you succeed!" part. I do it simple to "establish a friendship and trust and IF they don't succeed, then they have someone to turn to for help". I'm completely honest with a FSBO....I'll help....I'll do a lot of free work and I even have a FREE FSBO webpage listing for them...and will even go out and take the pictures for them...BUT, once they wear out...there's only one person they remember that TRIED to help them that deserves the Listing.

Thanks Suzanne. You never know what it could lead to. I was up against 2 other agents from traditional firms that I know cannot offer the kind of a-la-carte options I'm able to offer. They just walked out when she said she was going to try FSBO for 2-3 weeks. I offered her an alternative (sort of hybrid) plan. If she gets a buyer, I'll do the paperwork and get it to close. If not, I'm the only one who offered to help her after she mentioned FSBO. It cannot hurt.

I agree with you Erica. Being nice to a FSBO pays off. I'd say better than 80% I worked with eventually came to me...the other 20% sold on their own but still appreciated me.

Suzanne: This is very interesting... I see the same thing around here. WoW....

I have seen more in my area also, however I dont think I have seen one sell. The ones that sold were ones that went with an agent---Bart

Look, guys. Our market and the way we do business is changing rapidly. The dinosaurs around here say "6% or nothing" and walk away. Am I worth that? YES. But If a seller thinks he/she can do it on their own, I try to get my foot in the door and develop a relationship #1. That's my goal. Because when they don't sell, or when they find a buyer and the financing falls through, or they get sick of showing the house to all the neighbors, who will they come to? The agent who was cocky and told them "You'll never sell it." or the agent who sent them letters stating hte sad statistics that most FSBO's don't sell until they are with an agent. Or the agent who tells them "Good Luck, here's some tips, and call me if you need me." Some will manage to to it on their own (my neighbor/friend just succeeded without one bit of help from me). But most will come back to the agent who they remember being kind, helpful and persistent.

Hi David,

Establishing friendship & trust happens naturally when you are sincere, with or without me they have goal to sell their home and yes I want them to succeed! :)

Hi Erica,

Sounds like a good deal, let me know how it works out for you. :)

Hi Roland,

Spring has sprung! :)

Hi Bart,

Many just don't realize what they are getting into until they go through the process. I have seen a few make it through but they had a good support system behind them. ;)

Hi Erica,

You snuck right in there, I like your outside the box thinking! I always build relationships first, they will call you once you have earned their trust. They will also remember ones who told them they could never do it on their own. :)

Suzanne, where is your blog deco??? I was looking forward to what you had come up with?

As for your blog post, I've not seen this in our market. I think it's usually the other way around. First they try to sell by themselves, and then call a Realtor. ;-)

APR

2008

Some ( Who am I trying to fool? )Just about all FSBO's dont know what it takes to sell a house. It is even more than they can imagine. On top of that,their house is not in sellable condition but yet they want top dollars. Great post suzanne.

Hello from Idaho Suzanne. These are trends that have always taken place in the years I have been in real estate. For sale by owners will not be any more successful and they won't have the benefit of having thier listings in the MLS, Realtor.com and on several website portals. This trend will change as it always has in the past. I hope all is well and I hope you have an awesome year.

APR

2008

Hi Teri,

I'm working on that....;) Thats what I mean, usually they try it on their own and then list. But I'm seeing many that have already been listed, expired & now they are FSBO's...:)

Hi Lanre,

Welcome back! Most don't realize that it is a full time job until they try it on their own. :)

Hi George,

I'm doing well my friend, nice to see you! :)

APR

2008

I supply FSBO's with a "FSBO First Aid Kit", with all the needed state forms and advice they need to sell it themselves. Of course it is FULL FEATURED so the get the realization that I earn my commission and can do the job better than they can, however everything is there for them to do it themselves. Also I put them on a weekly call back list and quiz them about open houses they have held. How many showings? Any strong potentials. After a couple of weeks of this most of them invite me in to talk about listing the home and this works most of the time. If they are successful selling it themselves, there is usually a good relationship built with them for the next time they sell or buy a home and I get to help them then. Just add them to your database at their new address and stay in touch!

APR

2008

the safety aspect alone is scary. IN NH we had a guy targeting FSBO...he is in jail now but the price one family paid was pretty steep.

APR

2008

Safety is definitely an issue and we just put a home under agreement that was a FSBO for over a year it all boiled down to pricing and marketing

Hi Steve,

I like the idea of a "FSBO first aid kit" its all about relationships! :)

Monika & Jay,

You both make agood point safety is so important!

Steve, I love the idea of a FSBO First Aid Kit. But, what about your comment on a "weekly call"....isn't that in violation of the do not call list? I can see a "email" contact though. But still a GREAT IDEA!

APR

2008

It is kind of scary here - we are seeing less FSBOs and I have more listings than I can handle

APR

2008

Ironically we're seeing them too! I guess they figure "someone" might write their number down while there - and call later. After all, there are Realtors and signs in EVERY NEIGHBORHOOD now!

MAY

2008

The majority of FSBOs I have encountered are over-priced by a long shot -- the same, with the flat fee listings -- I can't imagine someone trying to go FSBO and succeeding in this market.

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