The 411 on FSBO / Susan Brown, Your Texas Connection, Keller Williams Realty

By
Real Estate Agent with Keller Williams NE, Kingwood Texas (Humble & Atascocita too)

The 411 on FSBO.  Not the 411 as in how to create your own FSBO.  More like the 411 on all the pieces involved in a FSBO.  And finishing up with WHY?

  1. The first thing a FSBO is going to undertake is making the house marketable.  Are they thinking like a buyer?  Probably not.  Our experience has taught us that our sellers think like sellers.  It looks great to them so it will look great to everyone else. 
  2. Next for the FSBO is determining price.  That is huge.  Where do they get all the statistics that show the current sales?  You can't go by what someone's cousin's neighbor said they heard a house sold for.  Concrete figures put you in the arena for home selling.
  3. Advertising and marketing.  What's the budget here?  They could hire one of the FSBO type companies on the internet.  And that will reach a few people.  Once.  It's not like having a realtor who sends out information to a variety of people in a variety of ways on a consistent basis.
  4. Photographs are very important.  The FSBO is most likely taking their own photos.  And video too.  However, even a professional photographer has issues with lighting at times - so good luck on that one.  We won't even get into the video possibilities.
  5. Showing the home.  Now, this is the biggest task of all.  The FSBO is actually staying home.  Or perhaps taking phone appointments.  They are inviting strangers into their home.  This is a huge safety issue, not to mention time-consuming. 
  6. The paperwork involved can be overwhelming.  And one slip up could make a huge difference down the road.  These are contractural forms.  A FSBO is not going to be able to plead ignorance when they are legally bound by signing a contract.
  7. Another way a FSBO is open to lawsuit is disclosure.  All the little details that go into a home's mechanics leaves an opening to forget something - hopefully not intentionally.  There have been a lot of questions over the years about disclosure or lack of disclosure.
  8. Negotiation.  Another key area.  The average FSBO isn't trained in the art of negotiation.  And it really is an art.  How many times when someone is attempting to compromise does it get heated?  Or stalled?  Or dropped?  A skilled negotiator is worth their weight in gold - or their percentage of commission.

A FSBO wants to save the money normally spend on the commission.  But have they forgotten about the commission to the buyer's agent?  And the money they are actually saving on the listing side, well, it is worth their time, photos or money spent on a FSBO service for the advertising?  Or is it better to put the home in the hands of trained professionals?   

Susan Brown, Your Texas Connection sells real estate in Walden on Lake Houston, Eagle Springs, SummerwoodAtascocita, TX, Kingwood Greens, Royal Shores & Kingwood, TX - just to name a few!  Susan's the team leader for Your Texas Connection at Keller Williams Realty NE.  Visit their website for more in depth info about the team and what they can do for you.  Or call Susan direct (281) 415-1454 if you'd like her to start working on your behalf today!

 

Posted by

             Susan Brown       

Susan Brown, Your Texas Connection, Keller Williams Realty

(281) 415-1454   www.YourTexasConnection.com

 

 

Comments (4)

Jeremy Williams
Red Hawk Coaching - Kingwood, TX
Business Coach, Husband, Father, and Dog Wrangler

Susan,

Great insight on FSBOs.  I think people trying to do it on their own don't understand the value an agent can provide throughout the transaction.  Think of it as a puzzle with each important aspect of a transaction a separate piece.  Without all the pieces, the transaction can fall apart.  This is where the expertise of a local Realtor can assist in all aspects of the transaction to ensure a smooth transaction from start to finish.  Thanks for the post. 

Sep 29, 2009 09:38 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Susan, I think that most FSBOs are into false economies.  And they usually don't get it until it's too late.  Then they have to hire one of u and lower the sales price, too (in most cases, anyway).

Sep 29, 2009 10:05 AM
Debbie Aldrich
The Watts Group Real Estate - Cottonwood Heights, UT
Salt Lake City Realtor - Salt Lake County, Cottonwood Heights

Susan, yu are so right, I think 80% end up listing usually when desperate and then get mad when we want to lower the price because it's not moving at the price they want.  It is often difficult to convince them this isn't last year.

Sep 29, 2009 02:19 PM
Susan Brown
Keller Williams NE, Kingwood Texas (Humble & Atascocita too) - Kingwood, TX

Jeremy - You are so right about the whole thing being a balancing act.

Patricia - I agree.  They don't get it and feel worse when they have to use a realtor and lower the price too. 

Debbie - They don't realize the times have changed and we reduce the price to what the listing price should have been in the first place.

Sep 29, 2009 04:14 PM