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The Truth & Real Reasons to use a Realtor Rather Than Go FSBO

The truth and real reasons to use a Realtor.

There are dozens of FSBO sites. How do you know someone searching for a FSBO house will stumble upon the site with your home? I've tried...not easy. Some sites have cross posts from other FSBO but to do a comprehensive search a person would have to keep track of ALL the FSBO websites to make sure they don't miss anything. The homeowner who lists their home on a FSBO site is like a needle in a haystack to potential buyers.
Realtors don't show FSBO houses. Realtors have the potential buyers. Buyers contact Realtors not FSBO's.
Even when you list your house FSBO and offer the 2.5% to the buyers agent...these agents are not searching the internet for FSBO sites and listings their time is better spent looking for new clients and showing current clients listings from the MLS.
When you list privately you are telling potential buyers they too can save the realty fees (because the buyer is the one to pay it...it's in the price). Any quote you get on your home from a Realtor includes the commission. Listing FSBO you need to deduct the commission fee from your asking price.
Buyers who look for FSBO's want to save on the commission too. Don't kid yourself you are not the only one looking to save those $10's of thousands of dollars. So are buyers of FSBOs.
The fact is, the vast majority of people who contact FSBO's are Listing Agent REALTORS!

FSBO's in Ontario have it even harder than in the USA where it is much more common to sell privately. Currently it makes no sense to list privately.

Really what are you saving when you list privately? You get less for the house, you have to be the one to show the house, you have to take all calls on the house (btw, these will mostly be Realtors wanting to list your house).

So the Realtors get commission. The asking price reflects this and is paid by the buyer.

Some FSBO services will have a Realtor who for a fee will list your property on the local MLS...but when a Realtor calls to book a showing they are told by the 'Listing Agent' to contact the owner directly. They will not provide ANY information.

The best advice to anyone considering looking to list their property: get a Realtor.

Posted by Toronto's 2 Hounds Design: Decorating + Staging on 06/02/2008 11:54 AM

Comments (23)

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Originally posted at: 2 Hounds Design - Unleashed: The Truth & Real Reasons to use a Realtor Rather Than Go FSBO

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23 Comments on The Truth & Real Reasons to use a Realtor Rather Than Go FSBO

JUN

2008

Hi Dane ... you offer some good advice.

Hey Dane! Bravo thanks for the the public reminders about using realtors........FSBO's are always challenging......and its nice to see someone 'other' then a Realtor point to the benefits of using a Realtor. Especially good was your comment about prices including Realtor fees..........thats how our system works........FSBO's want the same prices but no fees.......so what is the Buyer going to think or do? Really? He's going to say, "Nope don't need no Realtor representation - but I want to Pay You the Home Seller the extra dough?" I don't think so....

Marie, I hope so.

BTW, thanks for stopping in and commenting!

Hi Liz!

Thanks for stopping in and taking the time to comment!

I have experienced FSBO's recently, as a buyer, because I've been 'in the market' for a bigger house. I was willing to do the research for a FSBO if the house, location and price was right.

Believe it or not, there was one house that seemed perfect and was a FSBO. It was just like our house now, but MUCH bigger. The price was a bit high for FSBO but that didn't stop me from having it on our list 'to see'.

BUT, it was not available for showings, no lock box, and we would have had to get a hold of the owner to even find out about bookings. There are too many other houses on the market to put up with that. I told my Realtor to forget about it.

If someone wants to sell their house, if they are SERIOUS, they need to list with a Realtor. As a buyer, I'm NOT going to jump through hoops just to see a house!

I'm now the proud owner of a new (to me) house sold by a Realtor and shown by a Realtor!

I think FSBO's have the 'it's all about me' metality.

No one could ever accuse me of spending money frivolously. I drove all the way down to Charlotte North Carolina last August to by a new vehicle (Honda Pilot). I saved just over $21,000...seriously.

FSBO just doesn't work. I wish it did...I'd love to keep the commission in my pocket when selling...but it's not my money, it's the buyers.

JUN

2008

Dane, great blog. I feel the same way about buyers working without an agent---combine the two and it can be a nightmare. It seems that whenever I run into either or both together, what is "expected" of me as an inspector skyrockets---it is almost like they expect me to be the agent. I DON"T GO THERE.

JUN

2008

FSBO don't understand the the complexity of selling a house. Manytimes they get themselves into so much trouble. They think they can go to kinkos and pick up forms and they are done. They don't realize that there are timelines associated with transactions.

The title company that I use told us about a FSBO that they were supposed to close. The buyer walked in and said return my deposit I purchased another home. He sued the reason that the seller didn't provide him with forms that were needed by law.

He got his money back and the seller had to start all over again

Amen.

JUN

2008

Hi Charles, when there is no Realtor present the natural instinct is to look to any professional in the business, in your case the home inspector, for validation.

Ultimately every average 'joe' wants to know from a professional that everything is 'correct'...so hire a Realtor!

Virginia, That is another great point.

And who is to say if one side of the FSBO transaction is capable of getting the paperwork done on time and correctly. If as a seller you ARE capable...you are relying on the buyer to be competant...my husband has a saying...98% of people are idiots! (He works in the trades so he sees a lot of butcher work).

Audrey, Danka!

Dane -The voice of experience speaks loudly as the market shifts from a sellers market to a Buyers market there are some who might wish they had read this.

JUN

2008

Dane, this is a great post. Thank you for letting the public know that we do provide a great service. The money Realtors (sometimes) make is well worth paying, when we ensure that our client gets representation, gets advice, gets the legal documents prepared, while taking into consideration our client's best interests (protecting our clients); helping with Legals, Financing, Home Inspections, Moving services, etc.... (and if we're lucky enough that the seller has money left over on closing, we may even get paid). :)

JUN

2008

What a great FSBO story Dane - I think I'll use it - its so very true.............the 'all about me' attitude is pervasive.........they know better, think highly of their own skills, and probably pull their own teeth! :-)

Dane how would you feel if I quoted your FSBO comments on my FSBO website page? I'd give you the credit and even put a link to your site......? If it doesn't work for you i'm ok with that too! :-)

Sylvie Thank you! I will never buy or sell a house without a great agent by my side all the way. I like to know that while I'm sleeping, playing or working someone has a vested interest in my success of buying & selling.

I've heard of some horror stories about the ripple affect one FSBO gone wrong sale can have on all the other buyers/sellers closing down the line. Too many people can lose out on so very much because of a simple error or oversight a broker or sales rep would have done in their sleep.

Hi Liz!

Absolutely use the story and feel free to quote me. Feel free to provide a link to the blog post!

That house is still for sale...has been for months and is still FSBO. I'm sure someday when they get serious they will find a L.A. to finally get it to sell but what a waste of time and money for them!

JUN

2008

Hey Dane - decided to challenge you in the Canadian Bloggers Connect - since we seem to be on the same page about it'all! :-) Come check it out... Canadian Bloggers Connect a MEME Challenge

JUN

2008

Dane - Some have the ability and some do not but it reminds me of an old saying that was about lawyers who have a fool for a client when they represent themselves.

JUN

2008

Liz, you're on! (But I'll need a little time!)

Kathy, I know my nephew in North Carolina has sold his own houses (2) FSBO and is happy with it and wouldn't do it any other way. I talked to him about not getting seen by buyers and taking a lot longer to sell. He didn't care...I wonder how many are not 'serious' about moving forward with their lives. I would go nuts having to sell my own house and having such a small pool of buyers for my house.

BTW, I love the old saying!

JUN

2008

Thanks for saying all this. An unrepresented seller and an unrepresented buyer can be a recipe for disaster. Some things are better left to professionals rather than DIY-ers.

JUN

2008

I agree with everything in the original post, and as a condo specialist, I would add that everything is doubly-true for condos.

Condos are complex beasts and the potential for disaster for buyers is much greater. So condo buyers without an agent/Realtor should have their heads examined in my opinion. So what do FSBO condo sellers expect, that agents with buyer clients will come knocking on their door? I can't be bothered to work with FSBO sellers to bring them a condo buyer.

- Andrew

JUN

2008

Dane well said! I agree with an earlier post that it is nice to hear someone other than a Realtor say it like it is. Similar to a testimonial from a client always saying it better than you patting yourself on the back (tends to sound like boasting or bragging). Again well done!

I also would like to ask you for persmission to put your post on my website, giving you the credit for it.

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