In my last newsletter, I gave you some hard facts about how it is truly a Buyers Market. This week I want to talk about For Sale By Owner or as we call it in the trade "FSBO".
My first home was a new construction home that I raised my children in back in Michigan. When I was ready to move I was certain that I could sell it myself. I wasn't a Real Estate agent at the time but I was certain that I could easily do it myself and didn't want to loose the equity to a Realtor. My mother, a seasoned Realtor cautioned me, however I was headstrong. After dealing with the calls, showings and disappointments I decided I would go with an agency that would list it for a reduced commission..I was still responsible for the showings, the phone calls and I just kept lowering my price. It also took forever to sell. Statistics show that almost all people that try to do it on their own eventually list with an agent anyway.
For all of you who think like I did, here is just a sampling of what a Realtor does to earn her/his commission. First of all, the 6% is split equally between the Buyers Agent and the Sellers Agent (your agent). The biggest factor is that it is a Buyers Market, meaning the competition is a Huge Factor!. A Realtor is aware of it and will price the home accordingly. Marketing on the Internet extensively is critical. Buyers come from Realtors and those Realtors come to the homes that pay them for their work. A Realtor uses the MLS not the classifieds to find properties for their clients. They negotiate the contract on your behalf, co- ordinate potential repairs and negotiate that. Keep everything on tract to the close with all the players involved freeing you up the entire time to focus on your new home. We earn every dime and then some.
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