Murky Waters of DIY

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

Owners selling their property without hiring agents are called FSBOs (For Sale By Owner). 

Try asking these Sellers what they do for living, and then tell them that you, probably, could easily do it.

They would smile at you. They would tell you that it is very unlikely that you would be able to do it with any measure of success. There is so much involved, so many nuances, tricks, and it only sounds easy, but without education and experience it really isn't.

Then how come selling your home is any different? Did you spend years mastering it? Do you know what it involves? Are you prepared to deal with issues? How would you stack against a professional, representing the buyers?

Ask yourself why is that outsiders do not really know your business, but as an outsider, you know real estate?

Do you?

The funny part in selling by owner is that there is no financial benefit. Unlikely any benefit whatsoever.

- How come? Isn't making more money the goal of selling yourself?

- It is the goal, but it does not work this way.

If buyers know that there is no agent involved, they immediately calculate how much you are trying to save and they would discount this amount. At best they would buy it for the market value minus the amount of commission that you are trying to save.

So, best case scenario is that you would sell and get exactly the same amount that you could get with the agent, and you would not have to go through the hoops.

But best case scenarios are rare. If an experienced agent is stack against a Seller, who is not active real estate professional, you stand no chance to get the best deal possible. No chance.

So, why people keep doing it?

I spoke to a Seller, who bragged that he sold 28 properties, all by himself, got offers within hours.

He simply does not know how much more money he could have made with a decent real estate agent.

People keep doing it because they do not know what they do not know.

Because to really know it you need education and experience.
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I am a condo broker in Daytona Beach Area. Call me 386-405-4408 or email.

Image by ROBERT HUFFSTUTTER via Flickr.com/creativecommons

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Ron Barnes 12/31/2017 07:35 AM
Topic:
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Kat Palmiotti - true, we are trying to make is as uneventful as possible, and clients take it for easy.

Happy Nea Year!

Dec 31, 2017 06:47 AM #45
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Lise Howe - Thank you so much. Happy New Year to you!

Dec 31, 2017 06:48 AM #46
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Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

The ego sees success in "I did it myself!"  Ego seldom allows clear picture!

Dec 31, 2017 08:22 AM #47
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC - well said, my friend.

Happy New Year to you and your family!

Dec 31, 2017 08:26 AM #48
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Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

That's a nice analogy, Jon. And it's very true. For Sale By Owner can be real easy, until it's not. 

Dec 31, 2017 09:06 AM #49
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Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Jon, I hope your potential buyers and sellers read your post and my comment. I have purchased 2 different condos on the beach on the other end of Florida and both times I used a Realtor. There are so many potential problems out there for the buyer and seller. Why not use a professional to avoid all these. From knowing Jon as long as I have you will not be sorry using his expertise in buying or selling a condo. Happy New Year Jon Zolsky the Daytona Beach condos expert.

Dec 31, 2017 11:41 AM #50
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

So well said, Jon, and congrats on the feature that is so well deserved.

I cannot understand why anyone would want to take on the risks, and all the work, of selling on their own. And the expectation of saving money is unrealistic. In my mind it's money well spent and peace of mind to work with a professional.

Happy New Year

Dec 31, 2017 02:03 PM #51
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Ben DeHaven
Haven Realty & Investments - Winter Haven, FL
Proudly serving Winter Haven & Lakeland, Florida

"Try asking these Sellers what they do for living, and then tell them that you, probably, could easily do it,"

I havent used this line exactly, but I do like trying to help them get to the bottom of why they would be good at selling their home on their own. 

Jan 02, 2018 08:22 AM #52
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Nathan Gesner - funny that this is such an easy concept, yet so many are getting it wrong

Jan 02, 2018 08:29 AM #53
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Mike Frazier - isn't it something? I hear this probably every time I get a call from out-of the area real estate professional. They know that there pitfalls, and while telling me that they are agents/brokers, they say that this property is for their own use, so they are not asking for any commission, but want to be represented to have peace of mind.

And people, who are far from real estate have no fear, because they simply do not know that something may and often would go wrong.

Thank you!

Jan 02, 2018 08:34 AM #54
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Jon Zolsky, Daytona Beach, FL
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Jeff Dowler - Happy New Year, Jeff. It is not very smart, but greed takes over.

Jan 02, 2018 08:35 AM #55
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Jon Zolsky, Daytona Beach, FL
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Ben DeHaven - I do not really believe that they would be good. Having luck and being good at are different things. Some of them are lucky, and do not lose, but many dod not know that they did poorly.

They think that it was a good deal, but when you do not know what a good deal is, how can you be sure that you got a good deal?

Jan 02, 2018 08:37 AM #56
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Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

The for sale by owner market here is very small, but I have found that if I am representing the buyer, they do realize during the process that they end up paying more in the end.  In addition to paying for me to represent the buyers, they end up paying ala carte to the FSBO company or the attorney to respond to the forms that I send to them.  And it isn't cheap.  They are getting what they pay for in this "discount" scenario.  But the ones that continue to do it, usually have no problems the first time or the second.  It only takes once for it to become apparent that you cannot do it yourself.  Great post.

Jan 02, 2018 09:02 AM #57
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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

You nailed it Jon - People do not know what they don't know. Sometimes they do find out - after it has cost them big bucks.

Jan 03, 2018 08:47 PM #58
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Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Interesting post and comments, yet, it depends on the FSBO seller and his experience, doesn't it, as to his success in closing a transaction? Successful investors, for example rarely employ Realtors to sell their properties and many have a process and a margin that when met will close quickly because more important than the extra money is the value of their time and money. I've learned from experience that most FSBO's don't understand how money works and unfortunately wouldn't comprehend it regardless of the lessons they took to learn all about it. 

Jan 03, 2018 09:43 PM #59
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Karen Feltman - excellent point. In Florida we are transaction Brokers by default, so theoretically we still can help Sellers, and hook them with Title companies.

But that nly guarantees them that the paperwork is done properly, all searches are done and all disclaimers are in the file. It does not help them if they miscaltulated the value and created a deal for my Buyer.

Jan 03, 2018 10:03 PM #60
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Marte Cliff - and often they do not find out. I hear stories from people bragging how they sold in no time and for the full asking price. Quite a few times I would ask FSBO what their home was worth, and they really had no clue.

So on a $200K house, they sell for $175K and they think that they have saved money because they did not have to pay the commission, but If they would sell with the agent for a market value of $200K, they would have paid, let's say $12K, so they would have walked away with $188K (minus closing costs, that they still have no matter what the price was), but they do not know that they lost some money.

Jan 03, 2018 10:09 PM #61
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Kimo Jarrett - yes, I should have mentioned that this is about regular folks not in Real estate, who work "normal" jobs.

Investors are highly focuse and highly trained, and I consider them for the most part very serious professionals.

Thank you for your comment

Jan 03, 2018 10:10 PM #62
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John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Jon, I liked you start off question to the FSBO.

You drill down to find out their experience and motivation for selling on their own.

Then you can better address their motives.

Thanks

Jan 04, 2018 08:47 AM #63
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

John Wiley - Thank you, John

Jan 05, 2018 06:33 AM #64
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