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For Sale By Owner Tips for a Successful Transaction: Find a Good Realtor!

By Trumps Elite

Real Estate Agent with Keller Williams Realty Acadiana

April 16, 2010 12:17 AM

FSBO Tip #1: Establish a relationship with a good Realtor For Sale By Owner Sign

I know you do not want to list your home and you want to save the commission but you should still establish a relationship with a Realtor for several reasons:

A Realtor can help you establish a fair market price for your home based on comparable sales in your area.
A Realtor can help you prepare your home for a sale and give you some staging and marketing tips based on what is going on in your area.
A Realtor can tell you which forms you will need to use throughout the process (Property Disclosure Documents, contract, etc.).
A Realtor can possibly even help you with the paperwork and the transaction once you find a buyer (for a pre-determined fee) so that you have a successful sale.

The first mistake For Sale By Owners make is to think that once they find a buyer, their work is done when in actuality, that's when the work starts. According to the National Association of Realtors, 2 out of 3 transactions do not close when there are no Realtor involved. Don't take that chance. When you interview Realtors, ask them if they can unbundle their fees and possibly help you close the sale once you have a buyer for your home.

Why would a Realtor help you if you're not listing your home, you ask?

Our business is all about relationships and referrals. You may be buying another home or know someone else on the market to buy or sell a home. Besides, only 15 to 20% of For Sale By Owners are successful in selling their homes themselves so there is a great possibility that you will eventually list your home with a Realtor.

Having a Realtor on your side also means that if you can't sell your home on your own, you will know where to turn right away to take the burden off of your hands.

For Sale By Owner Sign

Tip #2: Offer to compensate if a Realtor brings you a buyer

Yes, you want to save the commission but you also want to sell your home, right? If you have a sign in your yard, Realtors will call you to either list your home or get information about your home if they think they might have a buyer for it. Don't push them away; they may be able to help you sell your home.

If you've established a relationship with a Realtor (see tip #1) and another agent call, simply say: "I have a Realtor that will list my home if I am unable to sell it on my own, however, if you bring me a buyer, I will compensate you __% or $________" (for a fixed dollar amount).

When we work with buyers, we try to find them the best house for them and sometimes that home happens to be a FSBO (many of my buyers have bought FSBO in the past and still used me as their agent in the transaction). Be nice and polite to Realtors when they call. Who knows where your buyer will be coming from?

More tips to come...

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Peter Buchsbaum

Gateway Funding - Horsham, PA

A relationship you can trust is an investment we a

Chantal,

I applaud you for thinking out of the box. I built my real estate business in 1974 by the same thought process. I am now a mortgage banker and have devised a plan that may be of some interest to you. Please visit www.IHaveaBetterSign.com . It is a pretty high tech FSBO program that allows you to help the seller market his/her home while you get the customers not interested in the home. It is definitely a relationship builder. It has worked like a charm in PA and NJ. Each sale sign has been generating 15 to 20 calls a week for the first two weeks. The interesting statistic is that only one property sold. While others commenting on this post think this takes away from the realtor it in fact does just the opposite. After 2 weeks the seller begins to understand how difficult the realtor's job is and usually decides to list the home. Everything in life begins with relationships and I again applaud you for taking the time to build them in your community.

Apr 17, 2010 12:28 AM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Chantal, sounds like you've got a good plan for working with FSBO's. If it works for you, go for it. Thanks.

Apr 17, 2010 12:38 AM

Irene Kennedy Realtor® in Northwestern NJ

Weichert - Lopatcong, NJ

Chantal,

Just last night I had a listing appointment with a FSBO who had no success. He was ready for this pro. Jokingly, I told him I wasn't coming in until the FSBO sign came off the lawn. And it did!

Apr 17, 2010 01:20 AM

Mike Woods

M.S.WOODS REAL ESTATE, LLC - Indianapolis, IN

Very good points. Sometimes they are successful at getting the home sold but more often than not they will eventually call the agent who was kind enough to offer their time and do the CMA and give them professional advice.

Apr 17, 2010 02:08 AM

Jack Chang

Coldwell Banker Bain - Bellevue, WA

Broker - Coldwell Banker Bain

Great points and thanks for sharing.

Apr 17, 2010 03:43 AM

Kristi DeFazio

RE/MAX Advantage - Colorado Springs, CO

Colorado Springs Rea lEstate 719-459-5468

Also, I would include in your post that FSBOS that do sell end up selling almost 16% less than if they use a REaltor (NAR statistic) So, only a small percentage sell and those that do end up selling for less.

Apr 17, 2010 03:54 AM

Patricia Aulson

BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH

Realtor - Portsmouth NH Homes-Hampton NH Homes

I like the post today, it's a worthwhile read.

Patricia/Seacoast NH

Apr 17, 2010 06:21 AM

Celeste Chism - Serving You in Crossville, Fairfield Glade, Lake Tansi & Cumberland Cove

Legacy Realty - Crossville, TN

Serving You is My Top Priority

Good post.... enjoyed reading it.

Apr 17, 2010 07:34 AM

Eric Michael

Remerica Integrity, Realtors®, Northville, MI - Livonia, MI

Metro Detroit Real Estate Professional 734.564.1519

I really like the post. It seems like it could be a letter to FSBO's, with a little tweaking.

Apr 17, 2010 08:40 AM

Richard van Seenus

Van Seenus Partners - Santa Barbara, CA

Best SB Agent

Yes, good information, we are here to help. if a seller can sell on their own it's a good thing, but more times then not they end up needing or wanting some professional help.

Apr 17, 2010 10:01 AM

Allen Shipman

Shipman Partners - Austin, TX

Great post. One tweak I would make comes from the age old real estate rule of "Location, Location, Location!" When it comes to FSBO's the rule should be "Price, Price, Price". This is the bigest problem I run into with FSBO's. They are almost always way over price. I could go on and on about price, but I think I'll save that for a blog of my own.

Apr 17, 2010 10:42 AM

Marilyn Boudreaux

Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA

Lake Charles LA Century 21 Realtor

Chantal, I wish FSBO's would be more cooperative and not know it alls! I have not had much luck with them here in Lake Charles. I think they are hard headed cajuns! Enjoyed your post it is encouraging!

Apr 17, 2010 01:48 PM

Chris Olsen

Olsen Ziegler Realty - Cleveland, OH

Broker Owner Cleveland Ohio Real Estate

Hi Chantal -- I have gladly represented buyers who have purchased FSBO homes. I try to determine if FSBOs are simply trying to drain all my Intellectual Property for free and then go it alone, I don't have any interest in helping someone for free. I will gladly meet with them, talk generalities, etc., but that's it. After all, it's a business and my business is about making my clients successful.

Apr 17, 2010 01:57 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

There are a lot of good recommendations to for sale by owners here.

- I just noticed you're in Lafayette. I have a bit of family there and spent a lot of time there as a child.

Apr 17, 2010 04:14 PM

LLoyd Nichols

Premier Florida Realty of SWFL - Fort Myers, FL

Southwest Florida Homes By The Sea

I never mind providing some basic advice to people, but as stated by many above, there's only so much that you can do if the buyer is adamant about selling on their own.

Apr 18, 2010 01:11 AM

Anonymous

Thanks for the post! I agree with building relationships with the FSBO if they are open, its a good source for future business.

Apr 18, 2010 04:40 AM

#36

Michelle Molinari

FEATURE THIS... Real Estate Staging & Interior Decor - Lafayette, LA

Feature This Real, Estate Staging & Curb Appeal Concepts

Hi Chantal -

I have always admired your position and advice to the FSBO market in our local Louisiana market.

I will continue to drive all FSBO's I encounter as a stager your way, becasue I know you will handle them with aplomb and allow them the courtesy they deserve to try it on their own, and the decency to catch them when they falter.

~Michelle

Apr 18, 2010 05:17 AM

Trumps Elite

Keller Williams Realty Acadiana - Lafayette, LA

Realtors/Career Consultant

Hi all and thank you for all the great comments!

The first thing I do when talking to FSBOs is figure out if they are receptive to my help or not. Some of them are rude, even on the phone, so I usually don't pursue them. I don't need clients like that.

However, I find that many are receptive to talking to me and listening to what I have to say. I always come from contribution and share some of my knowledge with them.

According to an appraiser I know, about 30% of transactions in our area are FSBOs, which is higher than in other areas. However, it also means that 70% will eventually hire a Realtor to help them sell their home. I want to be that person when the time comes.

I will have more FSBO tips in days to come...

Have a great day!

Apr 19, 2010 12:02 AM

Anonymous

Ike

Some of the posts here are calling FSBO's 'more coopoerative and know it alls'. 'Mercurial and difficult to deal with'. Umm, excuse me? Who are YOU - Someone who cold called them after they made it clear they are advertising themselves?

How about telling Realtors not to badger the you-know-what out of a FSBO seller? or treat them like irritating dumbos? You know what you all often do: it's non-stop with promises of the moon, until your own sale listing is signed. News flash: they are selling FSBO because ethey don't/can't pay the huge fees. Or don't trust you (take an honest step back and try to think from their perspective). Stop bothering them! if they want you they will find you.

You act like vultures and then wonder why they don't respect your 'expertise'.

Apr 19, 2010 06:46 AM

#39

Anonymous

Ike

Some of the posts here are calling FSBO's 'uncooperative' and 'know it alls'. 'Mercurial and difficult to deal with'. Umm, excuse me?! Who are YOU - Someone who cold called them after they made it clear they are advertising themselves?

You act like vultures and then wonder why they don't respect your 'expertise'.

Apr 19, 2010 06:48 AM

#40

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