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My Recent Experience With a FSBO

By Toronto's 2 Hounds Design: Decorating + Staging

Home Stager with 2 Hounds Design + Home Staging

June 05, 2008 08:17 AM

In my previous post, about choosing to use a Realtor rather than selling a property FSBO, I made a comment which I feel can stand as a post on it's own. To those who contributed to that post by commenting: Thank you so much!

My Recent Experience With a FSBO

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 without the owner, had 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.

Time is money; I will pay good money to save time.

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!

When entering in to a contract it should be a win/win situation. I've not come across any offer from FSBO marketing about saving the buyer money. Do FSBO's have the 'it's all about me' metality?

What is the point of selling property FSBO? Control over the process and transaction? You sell for less, or at least to be fair to potential buyers and create that 'win/win' situation you should be selling for less.

FSBO just doesn't work for the most part. 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. 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.

I'm also now the proud owner of a new (to me) house sold by a Realtor and shown by a Realtor. I know my B.A. will have earned 2.5% of my money paid on the house. If the L.A. made the same amount...well I just paid with the money I saved by purchasing my SUV south of the border. I consider it money well spent.

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I've added this post to the AR Group "Target Marketing" because I don't think FSBO's realize they are not hitting their target market. Buyers!

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Charlie Ragonesi

AllMountainRealty.com - Big Canoe, GA

Homes - Big Canoe, Jasper, North Georgia Pros

Nice post . On our radio show today we talked about this very thing. You are a fsbo , someone sees your sign, calls you , and you are out of town, Result BYE BYE Buyer

Jun 05, 2008 08:24 AM

Marie Meyer

Keller Williams Realty - Central Valley, NY

Orange County New York Realtor

Hi Dane ... I guess there is nothing like being in the buyer's shoes. Congratulations on your new home! At least you don't have to pay a decorator :)

Jun 05, 2008 08:27 AM

Toronto's 2 Hounds Design: Decorating + Staging

2 Hounds Design + Home Staging - Toronto, ON

Charlie, LOL so true!

We are in the process (big laugh the house is a disaster!) of getting our house ready to list. Two weeks of patching, painting replacing carpet, installing new floors and new bathroom...and that's just some of the inside stuff!

When the work is done then my 'job' starts and I will stage it. As soon as the papers are signed to list...we are OUT OF HERE!

We are taking the kids and dog out of the house and hitting the road (heading south of the boarder). No way you can do that FSBO!

Jun 05, 2008 08:47 AM

Marie, Thanks!

I've got my work cut out for me on the new house. I've decided to start having design clients come to my home so there will be LOTS of work to turn the house in to a 'show room'. (I can't wait to start!!)

Jun 05, 2008 08:49 AM

Anonymous

Liz Provo, Mass 4 Sale By Owner (Easthampton, MA USA)

Dane,

I'm not sure if a regional for sale by owner service exists in your area, but many of the concerns you mentioned are something that we, as marketing services for private home sellers, try to address. A home's value is a home's value. Using an appraisal to establish price makes sure that the owner is in line with other homes in the area and the result is that the property will sell for as much as an agent listed property. The difference is that the seller nets more profit as a commission is not subtracted. In a slow market, a private home seller can actually be more flexible for buyers and sellers in our area are having little problem attracting a large buyer pool. It's easy for sellers to be available to buyers - you can pick up your messages from anywhere and schedule appointments.

What puzzles me is why, if your business is staging, would you want to alienate a segment of the market that could benefit by using your services? We invite home stagers to speak at seminars and they are always well received by private sellers. The market is ever changing and reliance on agents is diminishing in many areas as consumers become more educated about the process. It's not rocket science. I have sold by owner successfully myself and enjoyed it. 90% of the work was involved in the preparation stage which I would have had to do regardless of who I chose to market the property. Sure felt good to save $11,000.

Jun 06, 2008 01:39 AM

Hi Liz,

What is the benefit to a buyer to use a FSBO if the homeowner gets to keep the extra cash the buyer pays? Why wouldn't a buyer use a Realtor to ensure the process and transaction runs smoothly and spends the time finding the appropriate properties?

From whay you say, it is the homeowner who is the only one to benefit. The market prices are set by what we as buyers will pay. I for one will pay a fee in my purchase price for a service, that would ensure all i's are dotted and all t's are crossed.

I believe FSBO is quite is quite huge in the States but in Canada it is not very popular.

From the properties I've seen locally the FSBO's are listing too high to be considered. The websites that feature the properties makes it look like properties are selling but are not upfront with consumeers that the SOLD houses on their websites are not the properties which have sold in the last couple of months; the majority are OLD because they leave all solds on line.

Is it alienating someone by saying this was my experience and this is how it appears to me? I don't think so. If I feel this way then likely more do as well. Perhaps my experience can be used by a FSBO/ FSBO business owner as a lesson learned to try to improve the process.

If I was considering going FSBO I would want to know what mistakes others have made so as not to make them myself.

At this point I feel strongly that, as a buyer and seller, I have two professionals who are devoted to getting the work done so I can do my job. There is no judging how long you will be trying to sell your house. I don't know who has the time to market it properly and oversee the showings better than Realtor.

Jun 07, 2008 01:16 AM

Liz Moras Migic

Chilliwack, BC

Chilliwack, British Columbia - Realtor

Amen Dane well put. For a transaction to be truly successful it has to be a win win.........Where is the win for the Buyer in a For Sale by Owner,,,,,,,,? Who is representing their best interests? A buyer does not have to typically pay commission ....so why would he not want to have someone professional and skilled showing him all the options, doing the research, advising him on the latest data and comparables........? All so the Owner can save $11,000? I don't think so.............And do you really think most of them will split it down the middle\/ ? I don't think so .....and even then, that could be a very costly $5,500 savings!

Jun 10, 2008 06:08 PM

My Recent Experience With a FSBO

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