A client’s brother recently listed his house with a discount broker, one of those who put the house in MLS and disappear. My client asked if that kind of competition worried me. I said, “No. There is always somebody cheaper. You don’t live in the cheapest house you could find; you don’t drive the cheapest car.” She said, “I get it."
And there is always somebody cheaper. If the FSBO seller is lucky, it’ll be fine — but selling a home is a big transaction to trust to luck. Even best-case scenario, he’ll be a clueless lay person up against a professional, and in case of a conflict he’ll have no one to turn to. I just terminated a contract with a FSBO seller. I could give him some tips on how to respond to buyers in a way that doesn’t infuriate them, but he’s not paying for my advice. Too bad, it cost him a sale.I figure people who are trying to beat the system are Difficult anyway. I just wish them well and go work with people who appreciate what I know and what I do.My two cents!
Those TV shows make it look so simple, but it's not. Most FSBO's will agree when they can't sell their home. To me, the most important part to have an agent involved is AFTER you have a buyer signed up. That buyer, if he doesn't get the full disclosures, can come after him even after the sale.
Hi Hella. You're so right. Sellers tend to be focused on the marketing phase, but what comes after the offer is much more complicated.
That's all we can do! You can't beat cheap by lowering your standards Dianne Goode!
I found your excellent post ( I missed ) through Kathy Streib's What I Learned This Week At ActiveRain-August 14-August 20, 2016.
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Rene Fabre
Renton, WA
I am a long-time fan of Kathy's Sunday Summaries, and it's an honor to be on her list. Thanks for stopping by!
Competing to work for the person who absolutely does not value your service or respect what you do? Yeah, not my cup of tea, either.
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Rene Fabre
Renton, WA
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Dianne Goode
Raleigh, NC
If you cut your price to get their business, you've forfeited any claim to their respect.
Good morning Dianne, we get what we pay for, in real estate and many other areas, being cheap actually costs more. Great post!
Hi Beth. I've basically learned to avoid the low bidder. Pay a reasonable price and then you can reasonably expect to be happy with the result.
No kidding. Just one is in the better schools and cities that does not mean home values are shot through the roof. After 6 years straight two digit inflactionary price increase few can afford homes. But the seller wants more, I got a call he says he got a broker willing to do 2% both ways. 1% to list and another 1% to coop. It was off the market. He called me again I ask what price he wants, he says a lot more than last time. I declined again.
Good call -- you just saved yourself a huge headache!
Another great post...I can see why Kathy chose to highlight it this week!
Thanks, Kristin. And thanks for stopping by.
Hi Dianne
Of this is much more than just 2 cents!! There is such wisdom in your words - there is always someone cheaper. And we all know you usually get what you pay for, right?! Glad to see this was featured by Kathy - well deserved.
Jeff
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Rene Fabre
Renton, WA
It's liberating to realize there is always someone cheaper, and you don't have to compete on price. Just say "I wish you well" and move on.
Hi Dianne - yes you are spot on. If you get into the price game it will be a continuing downward spiral.
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Rene Fabre
Renton, WA
Hi Dianne. There will always be someone cheaper. True. But, you get what you pay for!
Great read Dianne Goode ... I agree, there's always somebody cheaper. I heed your advice, wish them well, and move on to enjoy the people I want to work with! Nicely done post!
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Dianne Goode
Raleigh, NC
Diane, I do not prospect FSBO sellers because there is usually a reason for their initial choice to go the do-it-yourself route. And they want to be in control. There are sellers who respect professionalism and follow my advice. They're the ones I want to work with.
Yes, FSBO sellers are usually either trying to save the money and/or have issues giving control over to anyone else, even a professional.
It's true that those people looking for a cheaper way are difficult to work with. No loss there in my opinion!
Exactly! Go find someone who will appreciate what you do for them.
JUST sold a FSBO - had I been representing the Seller (and not the buyer, of course), the transaction would have netted him more money, more control & understanding of the process AND fewer repairs!
Here's how I look at it - We have plenty of agents that only sell 1-5 houses in a year - things change, Contracts are modified and they often haven't a clue! If LICENSED AGENTS with some experience under their belts can't get through the process without help from their BICs or their mentors, who on EARTH is going to 'help' a FSBO? They'll tell you their attorney friends but, I've represented several RE attorneys who look to ME when it comes to the execution of their own Contracts!
What is it that they say about fools and self-representation?! He/She who represents him/herself has a fool for a client!!
Hi Debe. Except for those those who specialize in real estate closings, attorneys can be as clueless as anyone else when it comes to the nuances of the Offer to Purchase. What they say about self-representation is pretty much correct -- and fools rush in!
Another example of my #FSBO opinion/generalization... FAILED SALE BY OWNER!
Dianne Goode - and this is one reason I love to work by referrals...
" just wish them well and go work with people who appreciate what I know and what I do."
Bargain stores, bargain agents. It makes me think of what I have always heard, you get what you pay for.
Dianne, my business model is not being the cheapest, my business model is being the most knowledgeable and most responsive Realtor...and yes clients appreciate it and are willing to pay for it, Endre
I think you said it all when you said that people trying to beat the system are difficult anyway. Amen!
The deepest discount comes when there is no education, time, effort, money spent on marketing...Amen and Women.
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