FSBOing???

By
Real Estate Agent with Keller Williams Realty - Topsfield, MA 92593-B

 Is FSBOing even a word? There are many reasons why sellers make the decision to enter into For Sale By Owner territory. Primarily to save on paying a commission. "After All...How hard could it be?" 

It's not that it's hard...However, there are many issues that come up during the transaction that a FSBO is not prepared or knowledgeable enough to handle...Here are 5 the folks at KCM think are important

 

Top 5 Reasons You Should NOT FSBO

Top 5 Reasons You Should NOT FSBO

 

Rising home prices coupled with a lack of inventory in today’s market may cause some homeowners to consider selling their home on their own (known in the industry as a For Sale By Owner). However, a FSBO might not be a good idea for the vast majority of sellers.

The top 5 reasons are listed below:

1. Online Strategy for Prospective Purchaser

Recent studies have shown that 95% of buyers search online for a home. In comparison, only 13% use print newspaper ads. Most real estate agents have an Internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

  • 50% on the Internet
  • 28% from a Real Estate Agent
  • 7% from a yard sign
  • 1% from newspapers

The days of selling your house by putting up a sign and listing it in the paper are long gone. Having a strong Internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent, who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser, if there is a question of value

4. FSBOing Has Become Increasingly Difficult

The paperwork involved in the process has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 7% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, they may actually cost themselves more. One of the main reasons for the price difference at the time of sale is:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

The more buyers that view a home, the greater the chance of a bidding war for the property. The study found the difference in price between comparable homes of size and location is currently at an average of 6%.

Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent without additional cost?

Bottom Line

Before you decide to take on the challenge of selling your house on your own, sit down with a real estate professional in your marketplace to discuss your needs.

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Barbara Todaro 07/06/2019 06:38 AM
Topic:
Real Estate Industry
Groups:
FOR SALE BY OWNER - MARKETING(FSBO)
New Hampshire - Real Estate and Life in The Granite State!
MA REALTORS
Tags:
fsbo

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Rainmaker
3,545,713
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Doug. Some folks just think they can do better on their own. For everyone else this is excellent.

Jul 06, 2019 06:31 AM #1
Rainmaker
3,203,991
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Doug. Many things sound easy until you commence the project. There are some, very few, who do well selling by themselves. Unfortunately, for every winner there are multiple losers. The question then is: “are you feeling lucky?”! Enjoy your day 

Jul 06, 2019 06:37 AM #2
Rainmaker
4,910,961
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Doug Dawes some homeowners do a great job of shooting themselves in the foot.... real estate professionals who are well-versed with what they do make it look easy...nothing's easy.... it's just smooth flowing when one is well-versed with the tasks involved....

Jul 06, 2019 06:37 AM #3
Rainmaker
4,358,935
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Doug,

We have a strong contingent of DIY mentalities, and they often learn the hard way that one needs a professional.  Good post, I first found it on Barbara Todaro reblog.  A

Jul 06, 2019 07:00 AM #4
Rainmaker
1,872,120
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Doug - just number three alone.  How does a seller with no experience handle all those and at once.  Hire a professional!

Jul 06, 2019 07:07 AM #5
Rainmaker
1,175,842
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

I have found that clients are seeing more and more FSBOs on places like "Z".  It can be very difficult to get a seller to deal with a buyer's agent which make our job more difficult. 

Jul 06, 2019 10:47 AM #6
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Sheri Sperry - MCNE® 

You are right. I know a person that looks for FSBO's on Z. Very frustrating for me.

Jul 06, 2019 11:02 AM #7
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

There is much the FSBO practitioner does not know and is why so many end up with a Realtor Grant Schneider 

Jul 06, 2019 11:03 AM #8
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hey Ron and Alexandra Seigel 

A. they certainly do find out they need a Realtor

Jul 06, 2019 11:05 AM #9
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

LOL...I love this statement Barbara Todaro "some homeowners do a great job of shooting themselves in the foot.... "

Jul 06, 2019 11:06 AM #10
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

People hear stories Wayne Martin then automatically think they can do it

Jul 06, 2019 11:07 AM #11
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Afternoon Sheila Anderson 

I agree. I hope you are enjoying this stretch of weather

Jul 06, 2019 11:08 AM #12
Rainmaker
3,213,874
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Huge numbers...have seen in the 90 plus per cent of buyers begin their search on the net....and how visible can a FSBO be in that medium ? Not Very...

Jul 07, 2019 03:06 AM #13
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

When I speak with a FSBO seller I always refer to FSBO market as the inactive market Sally K. & David L. Hanson since they receive little to no exposure. 

Jul 07, 2019 04:55 AM #14
Rainmaker
3,186,531
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Doug then on top of it is the liability factor many home owners are not keeping up with Real Estate Laws and regulations and the money they think they are saving could cost them more....Endre

Jul 09, 2019 11:20 PM #15
Rainmaker
748,440
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hello Endre Barath, Jr. 

You have just made a great and valid point. Most FSBO's DO NOT keep up with Real Estate Law

Jul 10, 2019 08:15 AM #16
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Rainmaker
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