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FSBO or Real Estate Agent… The Conclusion

By
Real Estate Agent with Dakno Marketing

Note: You can read the first post by clicking here.

As many of you may know. I recently wrote a post about whether to sell my house FSBO or use an agent. I must confess, although my wife and I have tossed around the idea, we are not selling our home. More importantly, we are not going to sell it FSBO. So why did I write such a controversial post? Why did I risk getting the very people who subscribe to my blog mad at me? There are actually a few reasons…

But before I jump too far into this post, I have to give credit to Rita Taylor for being the first one to blow my cover.

My guess is that Brad is going to turn this whole darn thing on its ear and ask why we are doing our own SEO and website building if we see how it does not make sense for a seller to do FSBO.

To Prove A Point

All too often I see Realtors doing the very thing they preach so strongly against. They take the FSBO mindset and try to do it themselves. I have never quite understood this. Why would someone pay to advertise in the newspaper or other media and then create the ad themselves in an effort to save money? The truth is that a professionally designed ad will yield far more responses then something thrown together in Publisher. Why? A good designer will consider things like color theory, negative space, setting focus and call to action placement. It's the exact same reason so many people warned me against things like contacts, pre-approval, feedback, coordinating the transaction, etc.

I Can Do It, But You Can Do It Better

I could probably sell my house myself. Granted I may not get the full price. And, because I don't sell houses every day, I will probably end up putting three times the amount of work into it because of the learning curve. It's the exact same way with SEO. Yes, you can learn SEO and you can probably have some success with it. Just like Real Estate, SEO is not Rocket Science. But, how much more income can you create by focusing on your core strengths? To use a quote from a friend and colleague, Michael Russer (a.k.a. Mr Internet®),

Anytime you do something outside of your core competency, you are paying top dollar for amateur results.

Some Houses Are Easier To Sell Than Others

Depending on market conditions, competition, and more, it could be pretty easy to sell a home. It's the exact same way with SEO. Sure, it's easy to get top placement for keywords with little competition. You may be able to rank well for keywords that contain 200K, 500k or even 1M results. But what about the keywords that compete against 10 Million or 30 Million? What about a multi-keyword strategy? Last month alone, Kevin's South Beach Real Estate Blog received traffic from over 450 unique keywords. And his blog has only been up a few months.

You Know How to Sell Houses. I know Marketing Strategy.

I look at everything from a marketing perspective. When I first joined Active Rain, I spent a few minutes trying to find the hot topics. It was SEO. So I jumped in and started talking about that topic. The reality is that Search Engine Optimization is only a small portion of Dakno Marketing. This is because well designed and coded websites do not need as much optimizing. But I knew that SEO would get eyeballs. It was a strategic marketing strategy. This last post was no different.

One Word: Exposure

For the last two months, I have tucked my post away in only a few Active Rain groups. I never really ventured outside of those groups. I realized that by doing so, I was limiting the exposure of my blog. I wanted a way to make a splash in a few other groups. So why didn't I just write one of my standard posts and submit it to another group? Since there are almost 40,000 people on ActiveRain, I knew that unless my post stood out in a new group, it would quickly get lost in the crowd. I needed a hot button. And to a Real Estate Agent, it doesn't get much hotter than telling an agent you don't need their services. So did it work? I think so. I had over 60 comments in less than 24 hours and the post pushed me to the most subscribed AR bloggers for the week.

How Much Does It Really Cost?

One of the biggest motivations for FSBOs is to save money. I think the same is true with web design and marketing. I often hear posts about Point2's free sites and all the software and template companies that allow you to build a site for almost nothing. I have nothing against Point2 or these other companies. That's not it at all. It's more the fact that the same Realtors that discourage me from trying to be a "do it yourself" seller are trying to be "do it yourself" web developers and marketers. Is the motivation to save money? I have to ask the same question I was asked in the last post. What is the real cost? Let me give you an example. We recently launched a website for a Realtor in Sunnyvale. The first month, the site generated almost 50K for them in commissions. It's no wonder he just called me to create 2 more sites.

Kevin Tomlinson doesn't know a thing about Squidoo, Technorati, Flickr, etc.. And the truth is that he doesn't want to. He would rather have my company deal with that stuff. Why? He is too busy selling miami beach real estate. And lots of it! He did about 24 Million in January and February alone!

So at the end of the day, could I sell my house myself? Probably so. Could you do it better? No doubt about it..yes. The same applies for Web Design and SEO. Can you create a website and optimize it? Sure you can. Can I do it better? You better believe it. :-)

Brad Carroll
Click here to subscribe to my blog

Connie Ragen Green
Small Business UnMarketing - Santa Barbara, CA
Online Marketing Strategist
Once again, Brad, you are teaching us valuable info here on ActiveRain. When I grow up I want to be just like you - smart and nice.
Jul 12, 2007 03:44 PM
Gabe Lombard
Today's Realty - Guam, IT

Brad awesome post.  I'm a new agent that has "advanced amatuer" web-design ability.  I have just posted my first website (http://www.guamrealestateresource.com) and wish I would have come across AR and your great BLOG beforehand.  Nonetheless you have given me great ideas to improve my search rankings and content design.

As a "resourceful" agent just getting started I have started a side-business on my own within my brokerage creating websites for a few other agents.  No more than I can handle, no less than will pay my rent!

Much thanks again for the GREAT blog!

Jul 14, 2007 07:25 PM
Brad Andersohn
Retired Executive Director of Education at eXp - Boulder Creek, CA
ActiveBrad - 707.646.1876
Brad - I'm a subscriber, love your informative posts!  You're the #1 most subscribed for the month! Go check it out!  Great post by the way!!
Jul 15, 2007 08:55 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
I like how you turned this around on us. Very sneaky.   Perhaps what we need to do when working with FSBO's is find out what they do for a livng and relate selling FSBO to their customers circumventing them in their profession. 
Jul 16, 2007 03:53 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
I like how you turned this around on us. Very sneaky.   Perhaps what we need to do when working with FSBO's is find out what they do for a livng and relate selling FSBO to their customers circumventing them in their profession. 
Jul 16, 2007 03:53 PM
Bob Carney
Taylor-Made Deep Creek Vacations & Sales - Mc Henry, MD
Licensed MD/PA Real Estate Agent
Well orchestrated!!!  You deserve the business you get from here!  Must be why you're not blogging much lately!
Jul 19, 2007 08:14 PM
Darrel Quebedeaux
Evergreen Realty & Associates Inc. - Newport Coast, CA

I must admit, you had me hook line and sinker.  I had read many of your post prior to the FSBO post and even commented on a few and as I typed my heart into my comments I was totally duped by your plot and it was not until I read Rita's response did I see the light.

Good job and I must say I am impressed.

Beyond that I am curious, I currently employ Compass systems I think its called and yes I have a point 2 website.  Compass has been progressively moving me up in the rankings but it seems to have slowed to a crawl before I have actually yielded any business form it.  Their cost are not outlandish but with Zero return as of yet I want to discuss you and your companies services before you are swamped with the rest of the AR herd.

Jul 23, 2007 06:04 PM
Anonymous
Cheri Rayas
Brad, Thank you for the information regarding posting. It's been helpful.
Aug 11, 2007 01:57 PM
#42
Melissa Wagner
Leo Parker Real Estate & Auction - Woodbury, TN
Great job! You certainly got my attention! I am thoroughly interested in what you do. Will be investigating further!
Aug 11, 2007 02:06 PM
Dom Naidoo
Westside Properties - Venice, CA
Malibu to the Marina Real Estate
Great post! Very helpful information. I'm definitely looking forward to your next post. All the best of luck!
Aug 11, 2007 02:28 PM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Brad, this was posted before I joined AR. I found the article interesting and convincing, but the comments were the best part.

I too will want  a website done in the near future. I have talked to one person about an IDX solution but he wants to charge me the same for every incarnation of the site, while I want a replicatable site that I only pay for once. It this an unreasonable demand?

I am also interested in results and you have convinced me that you are capable of getting results.

Bill Roberts

Sep 13, 2007 08:27 AM
Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate
Have you worked as an agent before going into design for the web?
Dec 27, 2007 05:31 AM
Brad Carroll
Dakno Marketing - Knightdale, NC
Real Estate Web Designer
No Heather, One of my goals for 08 is to get my license. Not to sell real estate, but to get a little more familiar with the process.
Dec 27, 2007 08:29 AM
Bobby Carroll
Jaclyn Smith Properties - Clayton, NC
Clayton NC New Home Happiness Coordinator

Hello Heather - I begin practicing real estate as an agent in 1985 with Merrill Lynch. It helps to have the practical experience as a member of the Dakno team. It's past time for me to renew my license. Let it lapse a few years ago when I worked in Marketing with Delta AirLines.

Bobby Carroll
Vice President
Dakno Real Estate Marketing

Dec 27, 2007 01:47 PM
Meg Zoller
Keller Williams - Houston, TX
Houston Fine Homes

Brad - People are asking what the cost to do business with you  . . .  and wanting to know  why they should do business with you.  THE ANSWER IS THAT YOU PUT TOGETHER FABULOUS WEBSITES, TEACH HOW TO USE THEM, SUGGEST NEW WAYS TO USE INFORMATION FOR OBTAINING YOUR OWN INTENDED GOALS, YOU AND YOUR TEAM ARE ALWAY THERE WHEN NEEDED . . . AND A GREAT NUMBER OF OTHER REASONS.

THE COST FOR THIS IS INSIGNIFICANT WHEN COMPARED TO THE NEW BUSINESS AND POTENTIAL BUSINESS.

Sometimes you have "to spend money to make money". 

BRAD, BOBBY, LESLIE, and OTHER TEAM MEMBERS -  I CANNOT THANK YOU ENOUGH FOR THE CONTINUED WORK YOU HAVE PUT INTO MY WEBSITE AND THE TIME AND EFFORT YOU HAVE SPENT TEACHING ME, COACHING ME, ADVISING ME . . . AND JUST PLAIN OL' HELPING ME OUT!

Oh, by the way . . .if you ever need a referral . . . send the folks to me.  I'd love to brag on you.

 

Dec 30, 2007 03:49 PM
Jacki & Jerry Shafer
The Shafer Real Estate Team, Keller Williams Louisville East - Crestwood, KY
The Shafer Team, Call 502-643-SOLD

Hi Brad!

I do think we're all suffering from bloody knees from fighting and scratching to try to get to the top of the heap.

And it's UNBELIEVABLY expensive to stay in business.  We ARE gun shy.  Everybody promises the moon and the stars and SEO.

I would be happy to talk with you and find out more.  Would love to see some of your work.  Give us a call.

Jan 01, 2008 12:21 AM
Anonymous
David Langham

This have been many great posts here, and very relevant to what I am trying to do.  I am a Real Estate investor with some experience in Internet marketing.  I built my own web site and did my own SEO with some success.  I am now looking to expand the web site by adding my own blog. 

I have also sold many houses FSBO and it has been great experience.  I have a couple Realtors willing to work with me to whom I pay a commission if they bring me a buyer,  but I do not get locked into one agency.  With each sale I learn more about selling houses and our market, and I learn how to make more money in Real Estate.

All these posts have been helpful to me as I seek to expand my Real Estate business on the web!

Feb 27, 2008 02:06 AM
#51
Bryan Flynn
Regency Mortgage Corporation - Worcester, MA
Central Mass and Worcester Mortgages
nice post, i enjoyed it
Feb 27, 2008 03:18 PM
Anonymous
Anonymous

We all are trying to get to the top one way or another but it costs heavily to do so if you do not know how to get it done.  Same as with fixing your car engine.  If you don't know, you bring it to the mechanic, Right?

I did a search on Meg Zoller's website, built by Brad, and one of her competitors built by someone else.  The page rankings are not very similar at all.  In fact, her competitor has a highly ranking by a huge difference.

Now, I don't know the details of how long both websites have been in competition, nor do I know who does any of the Ad-sense keywords or key phrases for either of the sites but I can tell you that Brads work is amazing over the other website.  It's like night and day BUT the less impressive is getting a higher ranking.  WHY?

Sooooooo, Is a $1,400+ website worth having?  Wouldn't it behove the owner to go for less on looks and have a larger budget on targeting more clients through SEO or other target marketing?  I can only assume that better rankings achieved by the competitor are bringing in more clients than she is getting through this amazing website.  Maybe not but seems logical, doesn't it?

The point I am trying to make is, Yes, technology is expensive and it is very hard to choose an adiquite company to automate your processes but you need to be up to date on your knowledge by reading more on your business.  Go to seminars about websites and search engine optimization.  You'll be surprized at the questions you will have when you do actually go looking for a company to deliver results.

Remember that all website gurus are not created equal and that there are many who say this and that but don't have a leg to stand on.  GET back to basics of business and check them out with the BBB and ask for references.  Do your business homework and you won't be wondering what a website costs or how to handle your automation processes.

This entire post has brought up many differences in our business and hope to see more like this.  After all, isn't that why we're here?  To discuss issues we are having in business and how to attack them?  Of course it is.

 

BTW, here are the Alexa rankings I spoke of earlier: I'm not a guru by any means.............

Meg's site -->  finehomeshouston.com has a page rank of 4,273,984

Their competitor --->  Ryland.com has a page rank of 78,835

May 21, 2008 10:23 AM
#53
Doris Freeman
Zach Taylor Real Estate - Gallatin, TN
Broker/Agent, 615-961-7799

Brad, awesome post, I just wish I had known about you before we hired someone to make us a custom site, (it is still under construction). And yes we paid dearly for it, but everything you said is why it will be worth it.  I keep reading on AR about all of this tech stuff and while I enjoy learning a little about it so I don't sound totally dumb (I am totally a novice), I decided to leave it to the experts.  We can't be everything and I am a great agent, so I'll leave the rest to the other experts.

Have A Great Day.

May 21, 2008 02:57 PM