For Sale By Owner: Raise The Price Then Call A REALTOR®?

We picked up a FSBO that had been on the market for over 6 months. We had him paint a couple of rooms, clean the place up a bit. Then we raised the price $10k and sold it in two weeks. He netted out more after paying us than he would if he had got full list price on his own.

I recently responded to a new home buyer who just entered contract in a co-op building and is at the point where if he used an agent to purchase he wouldn't be asking for help at this point.  Not using an agent is totally fine, but you should at least consult one if you have never bought or sold before.  Going in alone is just a little bit careless and foolish with so much money on the line.

Jeff,

This show the intelligence of that the Social Media has created on one end.  On the other end, it show the need for a communication to exist between the Real Estate community and prospective clients.

Open the MLS up to the consumer on a low level.  Create transparency in the industry and services that meet these new expectations.  The area, service, brokerage, agent, that greets and meets this new environment will become a leader in the marketplace and success will follow.

There will always be a court jester or fool in our crowd.  He just gets the leftovers.

Maverick Rules! 

This is the kind of advice that we get PAID for!

Hopefully by the time I write this, he has already sold by himself...? Perhaps he can see if any agent would offer any advise to him and send him an invoice by the hour. I say $500 an hour to give him some seller consultation.

He needs an attorney if he can get his own property sold and doesn't need to buy. Then hire an attorney - one that specializes in real estate and pray the buyer has an agent.

So basically this guy wants something for nothing.  He would not retain a realtor but now he's reaching out for sage advice from business professionals.  Free advice is like a free lunch - there is none.

It sounds like he needs a Realtor and an attorney... but it sounds like he only wants FREEadvice.  It's a slippery slope!

I am a newbie to AR and I am an investor not a realtor, but I always hire a Realtor to sell my properties, well worth the cost.  But what do I know, I only make a living in real estate.  You get what you pay for.  That guy might get more than he paid for: a very expense lesson.

Interestingly, I know Mrs. de Menil, and have for at least thirty years.  I don't know Mr. Baron, although the chances are that he and Mrs. de Menil are acquaintances if not social friends.

This USA Today story is a bit misleading, although I'm sure it's unintentional.  Here's why:

Like many very wealthy people, Mrs. de Menil uses attorneys and her selected real estate brokers to assist her in transacting business.  She pays them a fee directly to represent her. 

You can bet this was not a deal made and cut between her and the buyer as is inferred.

Most of my real estate income over the years has come from clients like Mrs. de Menil who pay me directly for advice and for negotiating their real estate business.

When we as a Industry, decide to police our fellow REALTORs and ask that they conduct business as committed full time agents, this kind of problem will disappear. The truth is that we REALTORS are viewed to be as lowly as the used car salesman. I have to admit, I know too many in the business that this description fits, giving us all a bad rep. If we clean ourselves up, the rest will be history! FSBO's are right! A big part of our agent community aren't worth the commissions paid. Once we rid ourselves of the "Country Clubbers" our reputations will soar.

If he is selling on his own he needs to figure the rest out on his own.

Is he serious???? Really, is he? He should have gotten a realtor first, then he wouldn't be in any sort of mess...

Jeff,

What I would like to see, is, how you would response to this person.  I know how I would respond and it would short and sweet, that's what Realtors are for:) 

Peggy

Hmmm...

Sounds to me like you've just issued a challenge :)

TLW...ROAR!

We are in a new era of tech-savvy marketing!  Isn't it wonderful that this new medium makes information easy and fast for all parties to view and sift through? 

Marketing is just one aspect of a real estate transaction.  The sales and closing the transaction are other phases and equally important.  One of the many caveats for the neophyte FSBO (for sale by owner) or first-time homebuyer is that the real estate transaction is unique to the parties, the home, the neighborhood, and the economy and planning or resourceful help may be required to successfully close a transaction with minimal stress to all parties. 

Some transactions can occur without a hitch.  Many, however (especially in this time of stringent credit and changing underwriting guidelines) can require the skill of an experienced realtor, financier or attorney who can handle the negotiations between a FSBO and a savvy investor to a first time homebuyer, as well as, the emotions or stress of the buyer obtaining financing, the coordination of other realty-related professionals, and the task management of other items that different situations require.  In addition to using the expertise of an agent and the agent's broker and brokerage, the FSBO can benefit from seller representation by a Realtor because the Realtor should have E&O (errors and omissions) insurance coverage for that particular transaction.

If you assume that the tech savvy FSBO will undoubtedly attract many prospects, it would be understandable that he could easily find many prospects and or multiple offers.  Would the FSBO be equipped to handle these situations and legal documents?

The FSBO may not realize that buyers may look online for home information but they often rely on Realtor expertise for neighborhood information, home pricing evaluation, contract negotiations, escrow closings and moving details.   A first-time buyer may be enthusiastic but may not be equipped to complete the sale should unexpected events occur.   In addition, if the buyer is looking at many different neighborhoods, cities, or homes for that matter, and it may be advantageous for an agent to point out the strengths of the FSBOs home compared to the other homes, neighborhoods, or cities the buyer or buyer's agent may be looking at so that the FSBO doesn't appear desparate to sell and can maintain his position on pricing or terms.

Perhaps this tech savvy FSBO can provide some tech marketing and negotiate the fee with a realtor to compensate him for some marketing efforts.

Ronda Ching Day

Realty Executives Oahu

This is funny. I keep getting emails from a FSBO condo seller and his last email read, "price lowered $7,000 now" or something along those lines. Hmmm, that's about equal to the commission he would have paid a Realtor had he listed it with one several months ago! Will they never learn? Good post and topic.