Home : Blogs : Cari Pilon, RE:STYLE Home Staging : Cari's Blog

My FSBO friend

I have a question...

I have friend who is selling her home and is currently a FSBO. She is not doing it becuase she mistrusts Realtors or anything, she says her reasons are purely financial.

She has had it listed for about 2 years now. Because she has to get a certain price for the home, she states that she cannot lower it any further. She stopped using an agent a year ago because after lowering the price, the commision amounts would deduct from the amount that she needs to get from the home.

I viewed the home and while my stager brain would like to see it staged, there is nothing horrible about the house that would make it not sell (other than probably the price and the Michigan selling market). The home was previously the model for the subdivision and she bought it furnished and everything.

My friend and her family do not currently live in the home, they are living with her mother in my town and hope to buy a house here when their home sells.

My question for you is how can I help convince her to use a Realtor? Like I said, she is not anti-Realtor, she just has the perception that she cannot afford one. I'm afraid that she won't be able to effectively market her home as an FSBO and it will stay on the market even longer.

Any advice on convincing her?

Posted by Cari Pilon, RE:STYLE Home Staging on 05/15/2008 08:13 AM

Comments (7)

fsbo

Post is included in group: Realtors®
Post is included in group: Michigan Realtors

7 Comments on My FSBO friend

MAY

2008

Cari - I am right in the middle of a post that talks about the 'costs' of selling FSBO. If this is a purely economic decision on her part, talk to her about economics. How much is she spending on advertising? What are her carrying costs for 2 years (the interest and taxes will not be recoverable)? How much time and effort has she invested and what is her time worth in $/hr? Finally, put a value on your negotiating skills vs. hers. When these costs are properly accounted for, she may realize that the savings are not as high as anticipated.

As long as the owner believes that pricing real estate is remotely related to "has to get a certain price for the home", she is completely deserving of the results, no sale.

No doubt she paid way too much for the property, which many purchasers of mode home do. Now she expects a buyer to pay her too much.

Fortunately, the market doesn't work that way.

Cari:

It is not easy when a homeowner needs a certain amount out and commission does take a bite out of what they need. The scenario that you have with this friend maybe one of consulting and hopefully she will see the light. I would like to recommend a magic bullet but there is none. I also, wonder if she might end up doing a short-sale or ??? Also, since they are not living there have they the ability to support this home payment wise while living with parents? Could there be more to this situation then meets the eye. The other question is why did the home not sell when listed.

good post...her price is too high-she bought it as a furnished home-model..so she overpaid for it...it has been 2 years, doesn't she realize that??

It seems to me she isn't serious about selling. If someone has their home on the market for 2 years, it seems pointless to continue to market it as is. The price is obviously too high.

Do a CMA for her so that she can see for herself what others are getting for their homes and maybe then she will realize that not only did she probably overpay for a "model" home, but she probably overpaid for the contents as well. She can't expect a buyer to pay her back for her furnishings! Maybe suggest that she hold the house open and have a somment sheet for potential buyers to leave their comments. Also, have her write down how much she has put into this home for the 2 years it's been on the market....house payments, utilities, taxes, insurance..that all adds up, especially over 2 years. She will "see" just how much she could have come down on the price to begin with.

Cheryl, the soldier's wife

I don't know if she realized that she overpaid for the home, but she probably did. So now she finds herself in the "has to get a certain price" world.

Having never been in that situation, what is she supposed to do? When you sell the home for less - where do you get the balance to pay the bank? Is the short sale where the bank agrees to take less? Are short sales a bad thing?

I'm pretty sure they can afford to pay their morgage, I believe they are living here with her parents so the kids can be in this school district and so her 4 kids don't trash the house that is for sale.

I'm pro-Realtor so I want her to list with someone, but it won't matter anyway if she is overpriced.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?