I say FSBO, you say Fizbo in Canton OH

By
Real Estate Agent with Hackenberg Realty Group

Canton OH, I say FSB0, you say FIZBO

I'm showing a house tomorrow to some new clients that is "For Sale By Owner."  I called and identified myself and asked would they pay me a commission if my buyers wanted to make an offer.  The FSBO lady said they needed all the money and how come the buyers couldn't pay me, after all you are the buyers agent. Couldn't the buyer just add the commission to the price?  I said that is not how we do things.  

Isn't that kinda how we got into this mortgage mess with all the out of the box razzle dazzle? Trying to make the deal work?  I don't know, What do you think? 

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Rainmaker
427,006
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Deborah, Some people just do not get it. I need lots of things, but that does not mean I am going to get them. Please let us know what happens.

Mar 16, 2011 03:00 PM #1
Rainmaker
3,099,244
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hi Deborah,  FSBO are hard to work with sometime, but I explain to them that Sellers pay us, and that I will help get everyone to the closing table

Mar 16, 2011 03:12 PM #2
Rainmaker
85,498
Samantha Davault
Alexander Chandler Realty - Fort Worth, TX
Fort Worth, TX

You could then explain to her how properties listed by agents are more likely to net more than properties that are not listed.  Then give them the list of complicated paperwork that they are going to be dealing with and tell them they can either hire an attorney or hire a REALTOR.    Tell them to take their pick.  If they still don't get it then explain to them that you and your clients will move on to a more cooperative seller.

Mar 16, 2011 03:12 PM #3
Rainmaker
792,881
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

The primary reason owners sell FSBO is they do not perceive the value in the traditional real estate commission compensation system.  It is high risk high reward for all parties involved.  Paying a commission to cover costs for expenditures on unsuccessful marketing efforts means the commission is more than the cost/profit margin to market/sell the property.  The seller or buyer not having any skin in the game upfront means the real estate agent/broker must get a higher reward when a transaction is completed. Simple risk/reward concept.

Alternative compensation systems, such as fee based services are being developed to meet such seller's needs.  Pricing can be addressed by hiring a real estate office to do a CMA or an appraiser to complete an appraisal. Options do exist.  Attorneys are also available to assist in the transaction and avoid potential legal mine fields. Alternatives exist to the traditional real estate commission compensation model and often result in significant savings to the seller (often the buyer too). Many in the real estate industry apparently do not recognize owners are fully capable of handling many, if not all, of the steps in a real estate sales transaction. Or they can hire for specific tasks and/or skills.  We do agree For Sale By Owner is not right for some sellers; if they do not have the commitment or skills to complete the transaction they should not try to do so, unless they obtain the needed skills by hiring for the task.

Buyers can certainly pay the commission to the Buyer's Agent, not just Sellers - not all transactions have to fit the same mold. 

Mel

Mar 17, 2011 08:05 PM #4
Ambassador
876,696
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Deborah, I have sold many FSBOs and have never had them tell me no. That's too bad for the Buyers.

May 28, 2011 04:31 AM #5
Rainmaker
230,229
Dee Mayers
Covina, CA
San Gabriel Valley, CA

Reasons for going FSBO is that they do not want to pay a commission.  Do you know if the property is priced right?  If it isn't then establish a relationship with them, focus on their needs.  Give them a CMA, show them that if it is priced competitively, they may can afford you a commission.

Or, if the property it is a buyer must-have, ask the buyer if they will be willing to pay you the commission and as always put it in writing.  It is doable unless it is against a written law in your state that is.

Jun 27, 2011 02:06 PM #6
Rainmaker
710,551
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Deborah

The FSBO person needs an education. Perhaps if you gave her a list of all the disclosures she needs to complete, she may see why it's important to pay someone to at least take care of the paperwork in the transaction.

I must admit, however, that I've had a buyer pay me 1% of sales price when I found him a house that wasn't even for sale, but we convinced the seller to sell. While 1% may not be a lot, I got to list his other house for sale, and that turned out to be my biggest sale that year.

Jan 17, 2012 07:34 PM #7
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Rainmaker
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Deborah Wilson

Stark County OH Real Estate
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