The Perils of the FSBO, Syndication and Limited Services Providers

By
Real Estate Agent with Keller Williams Realty
The Perils of the FSBO, Syndication and Limited Services Providers

This post is not intended to bash FSBOS or limited services providers because each has the right to do whatCaution they do.  But rather the following correspondence between me and a FSBO is only a glimpse of FSBOs thinking that what we do is a breeze.  Of course personal information of the FSBO has been changed for obvious reasons.  Please note that the second paragraph of my response was not actually included in my response to the FSBO.  Instead I added to this post for the benefit of all FSBOs.

TO: Webmaster

From: FSBO
@gmail.com

Message:
Hi, The house 1234 Main Street in Some City in Alabama , is currently listed sell by owner, but agent welcome, not agent exclusive. please change
the listing type on your web for this information. Thanks.

FSBO
the owner of 123 Main Street
ph: 205-555-5555
 
Hi FSBO
 
Unfortunately I will not be able to change any of the information about your property that appears on my website.  You see, the information that is on my website is pulled directly from the MLS.  Therefore, you will need to contact the limited services brokerage that you hired to list your property in the MLS and have them correct any information that you deem incorrect.  Otherwise you will find yourself contacting thousands of agents one by one and asking them to change information about your listing that appears on their websites via IDX or other syndication methods.  But that type of one by one dissemination of information is just one of the perils of Sale by Owners.
 
Oh and just one final thing.  When you hired the limited services provider to list your home in the MLS, I am confident that they probably explained their menu of services thoroughly and as a result, you selected only the services that you felt you couldn't perform yourself (i.e. putting info in MLS).  Unless you have sold a number of homes before FSBO, then I am sure that this experience has been quite daunting as wells as disappointing in the 5 months that your home has been listed.  But know this, it probably isn't too late to revisit the services that you thought you could live without.  And it's okay to change your mind and recognize that perhaps a full service brokerage agreement would benefit you.  Afterall if entering information in the MLS is all that we real estate agents did, heck I'd have far more time on my hands.

Best wishes on the sale of your home,

Charita Cadenhead
Bham WIiRE Realty
www.bhamwiire.com
 
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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Roger Johnson 08/23/2012 02:27 AM
Topic:
ActiveRain Community
Location:
Alabama Jefferson County
Groups:
Bananatude
Tags:
fsbo

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Ambassador
767,726
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Melissa this is the first time that I have ever been contacted by a seller with such a request, but I had heard of others having faced this isue.

Aug 22, 2012 12:18 PM #25
Rainmaker
1,570,764
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Excellent, Charita.  I was just commenting about a FSBO that finally hired a limited services provider.  The FSBO was for sale for a year, and the LSP was on the market for a year.  How much did he save in 24 months of payments, taxes, insurance, HOA dues, etc., etc., etc?

Aug 22, 2012 12:20 PM #26
Ambassador
767,726
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
What gets me Mike is when a seller list the home for that long and finally sells it for their price and then they say, I knew it would sell for that price. But like you said, at what cost?
Aug 22, 2012 01:09 PM #27
Rainmaker
659,070
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

Hi Charita...Nice chuckle from your letter to the FSBO. 

I am on the other side of the fence than most folks on FSBO's.

Seller's markets (like we are in) are very kind to FSBO's.

My former neighbor and very close friend just sold his house FSBO. Closes on the 24th of August. Had one open house and sold it from that.

He had an early offer from a Realtor that was 15k less than where it sold.  That Realtor told her clients the comps did not support the price.  What she did not know is that there were two private sales within a few houses of us that did support the price but these two homes were not in the MLS Solds.

I wonder how many Realtors ACTUALLY check the recent Solds at the courthouse instead of just in the MLS?

She cost her client a nice home in a nice neighborhood...with a nice neighbor like me.....

Aug 22, 2012 01:18 PM #28
Rainmaker
818,605
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

While I agree with some of your points (not everyone is qualified to sell FSBO), you neglect to mention the folks who are perfectly capable of it. Many of our clients are attorneys, former Realtors, MBAs, have sold multiple homes etc. You are so right that merely listing a property on the MLS is not enough and barely the tip of the iceberg of what a Realtor does. Our company does that, then helps to market the property well, too. Our clients who aren't capable of negotiating and writing contracts, hire an attorney to do so and still save substantial money (and avoid those liability issues). Not all our clients are successful selling FSBO and some do end up going with a Realtor eventually, which is a wise decision for them. I am certainly pro-Realtor for some people. Many of our other clients have been successful going the FSBO route and saved a lot of money.

Gretchen

Aug 22, 2012 01:19 PM #29
Ambassador
1,704,110
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Charita, I would probably have been too tempted to include the second paragraph. Who cares what they think?

Aug 22, 2012 02:16 PM #30
Ambassador
1,441,126
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Charita,

This sad story is being played out every day by unrepresented sellers...just to save a few bucks.

Rich

Aug 22, 2012 08:21 PM #31
Rainmaker
589,783
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Charita,

You did not have nearly enough comments, so I decided I would add mine.

An investor tried to buy my bank owned listing. As I met with him and his partner, they tried to slam the price they had offered way lower.

It didn't work and they lost out on the deal. In their conversation with me they said - "We really need to concentrate on for sale by owners. They can be tied up with a contract then we can negotiate the price way lower at the inspection time..."

Phil

Aug 22, 2012 08:31 PM #32
Rainmaker
199,859
Brian Kuhns
Coldwell Banker Roth Wehrly Graber - Fort Wayne, IN
Fort Wayne Real Estate by Brian Kuhns

I often find fsbo's just have a longer education cycle than most clients. People have to live it themselves before they'll believe the advice of a professional agent...because we're all biased right?. Best line I've got from a fsbo selller?....."That's a lot of money just to show my house"  .... oh brother.

Aug 22, 2012 10:34 PM #33
Rainmaker
877,898
Janis Borgueta
Key Properties of the Hudson Valley - Newburgh, NY
LIC RE Salesperson

From what I heard... Mr. FSBO.com himself hired a Realtor when he sold his home... there was a reason for that.. ya think?

Aug 22, 2012 10:37 PM #34
Ambassador
2,005,381
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

There will always be FSBO's out there. they serve a purpose on my listing appointments. . an example of WHAT NOT TO DO!

Aug 22, 2012 11:16 PM #35
Rainmaker
889,755
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

I won't show FISBOs either. If my client wants to see one I will show it but have a good heart to heart talk with them too.

Aug 22, 2012 11:25 PM #36
Rainmaker
1,384,127
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Charita, I'm sure the agent told the FSBO their listing would be all over the Internet on multiple sites. Point well taken.

Aug 23, 2012 12:18 AM #37
Rainer
482,047
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Hi Charita. Great response!
I've not yet figured out why people "commit" to someone for a service, then reach out to others to make changes to what that service has messed up, or justify their thinking, for them. I guess they really have no clue how something works and are afraid to ask, or perhaps they are simply unable to get in touch with the service provider anymore. Either way, it creates lots of additional problems for them.
Bruce

 

Aug 23, 2012 05:08 AM #38
Ambassador
767,726
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Mike I haven't heard a lot of those stories. Matter of fact, yours is the first.
Aug 23, 2012 05:10 AM #39
Ambassador
767,726
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Gretchen I am sure that their are many success stories. I just can't cite any.
Aug 23, 2012 05:13 AM #40
Ambassador
767,726
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Oh boy Tammie wa I tempted. But I resisted.
Aug 23, 2012 05:14 AM #41
Ambassador
767,726
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Richard make that perceived savings.
Aug 23, 2012 05:16 AM #42
Rainmaker
544,206
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Charita, the person selling their house FSBO for 5 months needs to figure this out quick. I like the way you suggested that you could help them in the email response.

Aug 23, 2012 06:45 AM #43
Rainmaker
316,151
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

Hi Charita, this a good cautionary tale that all FSBOs should read and learn from.               

Aug 23, 2012 07:28 AM #44
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Charita Cadenhead

Serving Jefferson and Shelby Counties (Alabama)
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