Real Estate Blog - FSBO....FSBO... where for art thou FSBO

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FSBO....FSBO... where for art thou FSBO

For the last few years my partner and I are always looking for other ways of produce income for our Real Estate business.

Along with our listings...we've also been showing properties to more buyers now then we ever had to in a long time. I usually handle the listings while he takes the buyers for the "Grand Tour". He's even going the extra mile by providing cold drinks or coffee if it's a morning run.

I....on the other hand have been going back to the basics. As much as I dread doing this but...I used to drive around once a week looking for FSBO signs. I'm usually looking for the sign that's been out there on a regular basis and for a long time. Recently I decided that I needed to go back to this habit.

Sometimes I randomly drive a neighborhood I'm familiar with and look for my next hit. I figured that I might as well do this and maybe I'll find someone who is just getting tired of the same calls from unqualified buyers just looking to see how much the price has been reduced.

Lately I've noticed something different...I haven't seen many if any of those signs that I'm used to. I know this has been going on for a while...I just haven't had time until recently to notice it.

Well now I do...and I think there are a few reasons why I'm not seeing as many FSBO's.

If you don't see many FSBO's in your area it's probably because SELLERS NEED REALTORS® NOW MORE THAN EVER.

One reason is that there are many short sales out there and most consumers don't understand how to do it themselves so they figure if they hire us to do it for them then they don't have to worry about paying us and also know that they are just hoping we can sell it and have the bank relieve them of their debt.

What do they have to lose? If they're not able to modify their loan then either they go into foreclosure or they sell short and get the bank to pay us.

Then there are the reality sellers....they're the ones who know they can't sell on their own in this market so they need to hire us to make it happen.

For more information please contact Neal The Real Deal Bloom-CRS-Realtor® /Remax Premier Assoc.

2500 Weston Road ,Suite 103

Weston FL 33331

(954)608-5556

Posted by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL on 08/27/2008 10:26 PM

Comments (34)

fsbo, short sales, sellers, realtors

Originally posted at: Weston Florida Real Estate Blog, Neal"The Real Deal"Bloom : FSBO....FSBO... where for art thou FSBO

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34 Comments on FSBO....FSBO... where for art thou FSBO

AUG

2008

Neal- I have seen very few FSBO signs. And those that use Buyowner are now calling us because buyowner had them spend tons of money and can not do a short sale! This is the time that sellers need us and they also are not complaining about our commissions either.

We have never had many For Sale by owners in my area. There has not been much of a change on that. When I speak to the occasional owner, they tell me they are getting bombed with a million phone calls from real estate agents and most are telling them in not so many words that they are idiots form not using an agent. Not a great way to win friends and influence people.

Realtors have value. Some sellers take awhile to figure this one out Neal.

Our area is saturated in FSBO signs. I am working on a plan but it is weird. I dont know what to do. I have seen signs that say no realtors or no agents. Do they really know what they are doing? Well we all know the answer to that. Its unfortunate. I would love to bring my buyers through but I have no way of previewing the house and I have no way of knowing how the price was determined and I have no way of setting up an appointment because I have no way of knowing if they work days or nights or any idea of their schedule?

They say we do nothing but put a sign in the yard!

Hey Neal, You must be busy in the market your in. Good Luck. Regards, Aldo.

Neal, it seems like our local market is seeing less FSBO signs as well.

Neal, there are those that will always say they can sell their home and I have a few in this area. I had a FSBO's mother ask me a few things about a well test and other inspections and I had to ask what's going on. She said my son sold his home (FSBO) and needs help. I helped out for free...ouch

Neal,
Well, you know what? I have seen less fsbos lately these days, it means that they are using REaltors :) great blog ! :)
Ray Saenz

AUG

2008

Neal, there are not as many FSBO's here as in the past either. Too much inventory, and since Realtors brought their buyer clients to them, we don't need too anymore. There is enough inventory in the MLS to show them. Only looked at one FSBO all year, gave them a good offer, better than the one they took with another FSBO.

It seems to be pretty obvious that in most areas where inventory is high and sales are low and people are up side down it only makes sense to hire a Realtor(R). Thanks for all the feedback

I agree that I'm not seeing as many Unrepresented Sellers as in years past. I also have started referring to them as Unrepresented Sellers in my conversations and pitches. It's important that the public come to realize what they actually are. Sellers trying to do the process without representation.

Neal,

That makes sense why FSBOs are a rarity nowadays. This tough market isn't for the rookies. Only someone who understands aggressive pricing can succeed now as a FSBO.

Neal: More reasons than ever not to go it alone when you can have a professional Realtor by your side.

Hey Guys,

As you see...it does make sense. Especially with owners who have no clue what to do if they are up side down and need to sell. There will still be a few out there that will give it a whirl themselves ....I just hope they know what they are doing.

We still have a few Unrepresented Sellers, but in general owners are now willing to pay full commissions or full commissions plus for an experienced agent with a track record. In the really hot market, many thought they didn't need us, builders included.

Neal I have not noticed a decline in FSBO signs around here, but I am seeing them come down quicker and Realtor signs going up in their place.

AUG

2008

RIGHT ON with this one, Neal! Sellers cannot afford to risk that they might get lucky and sell their home on their own. Furthermore...with the fluctuation in prices across the country...a seller would be hard-pressed to know where their home should be priced to be competitive.

It's good to be back!!! GBU!

I haven't noticed fewer for sale by owner signs in Connecticut. But while I was driving through an area I'm not familiar with, one homeowner had taken the time to put a wooden post in the ground, with a wooden sign with the letters "PROPERTY FOR SALE BY OWNER" etched or carved into the wood. I thought this sign was symbolic of the amount of time it takes to a FSBO to actually sell.

Elizabeth,

Unfortunately most will end up wasting time and end up listing it later and have to get less as the market continues to spiral down and they are always trying to catch up to the market.

Sharon,

You'll always find some that will stick to their guns if not in a rush...well there is a long wait.

George,

So what you are telling me is they put them up and then come down right away?

Jessica,

I even saw the paper signs that just get washed away from all the rain we have here.

Neal I would not say that they come down right away, but they do come down fairly quickly, about 30 to 45 days.

George,

Thanks...I didn't quite understand your original comment.

AUG

2008

Interesting Neal. I have never gone after FSBO's so I'm not as in touch with the numbers we have right now versus several years ago. You are so right, now, more than ever, sellers need a Realtor!

Diane,

That's surprising to hear. I figured most agents did at one time or another.

Neal you are so right I am seeing less of them and they do need us more than ever before

SEP

2008

Thesa,

I'm hearing that in most states we are seeing a decline but the others haven't seemed to notice.

The number of FSBOS in our area seems to have dropped off as well, but perhaps I am not paying as much attention as I used to. With the market being as challenging as it is, adn what the media has to say, perhaps more folks here are deciding they reall CAn benefit by working with a quaified REALTOR.

Jeff

We don't have quite as many as we used to...but with the drop in home values, I expect to start seeing more of them. One house in the area was FSBO, then listed with an agent for a few months, and now is FSBO again. My guess is that since the price needs to drop to a certain point to get it to sell, they can no longer pay the real estate fees, and are trying to "go it alone" again. It's sad.

SEP

2008

Jeff,

In my area they can only post their signs in certain neighborhoods...others don't allow any signs so unless I scour the papers... I'm not seeing many on the open streets lately.

Kelly,

They are now realizing that they do need us more than ever.

Neal - I stand corrected! On my way driving home from the office today I passed 5 FSBO signs! Within the space of about 1/2 mile!

Kelly,

Wow...it must have been the long holiday that got them thinking...now you should call them to see if they are up side down or not...there will be the motivation.

SEP

2008

I totally agree! Seller's are more savvy now and understand the importance of selling their investments..especially in today's market. When I get calls regarding home staging consultations by home seller's I always ask if they already have an RE Agent....if they don't (which isn't as often anymore) I offer referrals and stress the importance of investing in a great agent!

SEP

2008

I still see plenty of these UNREPRESENTED SELLERS out there in my area, although the number has decreased significantly. I personally don't mind showing these to some of my clients because it gives me a chance to build a rapport with the owner and sometimes they call me back to list their home. If my buyers want to make an offer, I can also negotiate a higher commission too!

Janice,

Very common here right now.

Michael,

We used to have signs on every corner..but that seemed to disappear lately.

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