Okay, I know as real estate agents the last thing you want to do is ENCOURAGE FSBO's (or encourage a fee that is less than your standard commission).
So even if there ARE ways to pay a real estate agent in a FSBO transaction, you wouldn't want to blab about it. "Hey, Mr. Seller, why don't you try to sell it yourself for a little while and call me if you get a live one?"
It might encourage MORE people to sell their own house without a Realtor.
But isn't that a little like not giving out condoms to teenagers because that would encourage them to have sex?
Maybe the world should admit teenagers have sex and there will be buyers and sellers that come together without a real estate agent.
After being the mortgage broker for 2 "for sale by owner" transactions, I have a brand new appreciation for real estate agents. I also wish there was a simple and cost effective way for FSBO's to buy the services required to complete these transactions.
I don't want to be the (poor) substitute for 2 Realtors in a FSBO transaction. I am the mortgage broker.
It is hard enough to get the loan approved, much less handle a dual agency transaction with all the drama of low appraisals, move in issues, inspection issues, contract revisions, re-negotiations, melt downs, near divorces, etc. etc. etc. etc. etc. etc.!!!!
Damn, you guys sure earn your money. Didn't I just read an ActiveRain blog that stated this "Finding the house is the easy part"?
Amen.
Buyer and seller may have muddled through to the point of coming together on price, but after that the train of thought goes something like this:
"Well what do we do now?"
"I dunno. We need a contract, don't ya think?"
"Nah, what do we need that for? But I do need a loan. Maybe I should find a mortgage person???"
"Hey! Those mortgage people know all about paperwork and stuff. Let's go see the mortgage person!"
And thus, the mortgage person (as the only real estate professional in the transaction) becomes Realtor By Default.
Maybe it is time to offer limited services to FSBO's with a different pricing model. Openly. Willingly. So everyone knows about it.
Instead we let them muddle through with a little help from the mortgage person, and a little help from the title company. This nearly always results in something LESS than a satisfactory transaction (not to mention depriving Realtors of much needed business).
Is it because stepping outside of the traditional pricing model is just too scary? Oh ye of little faith. People NEED Realtors. HA! Let them try to do it by themselves and you will see a whole new appreciation for Realtors.
Maybe it is time to EMBRACE the people who choose to find buyers for their real estate. Guess what? With the Internet it is only going to get easier and easier for sellers to find their own buyers. These people are going to seek out a different pricing model than "seller pays X percent" to list house.
When will we, as an industry, stop labeling people who want to sell themselves with the unflattering term "Fizz-bows"? When will we realize they are just another potential customer who desperately needs the services of a real estate agent?
When we stop being afraid that asking buyers to pay instead of sellers just might be a good idea.
Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area
Comments(84)