There are 3 Way to Sell FSBO “By Owner.” Which one is the most effective?

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Services for Real Estate Pros with ADDvantage Real Estate Services

Want to Sell "FSBO" or "By Owner" but want MLS Exposure? 

Many sellers are looking to sell a home but are not quite sure about the best FSBO marketing approach. Most sellers want more marketing but don't want to pay Buy Owner $6,000 to list on their website-and with good reason. Below are important questions and answers that every For Sale By Owner (FSBO) seller needs to consider before marketing their Florida home.

I am Keith Gordon, a FSBO marketing expert and broker for a Florida based flat fee MLS listing service called ADDvantage Real Estate Services. I am an authority on FSBO marketing as I have sold over $30 mill in property in the past 12 months via this flat fee marketing strategy.   As well, I currently have $13 mill under contract by using effective FSBO marketing strategies.

I have broken down FSBO listing into 3 categories with the advantages & disadvantages of each. (1) FSBO (just a sign in the yard); (2) FSBO (listed on a FSBO website such as Buy Owner; (3) FSBO with MLS (flat fee listing on the MLS). 

 

(1)    FSBO using a red and white FSBO yard sign.

  Back in a seller's market (pre-2005) this was an effective strategy to sell.  

                Advantages: 

1)      No real estate commissions

2)      FSBO sign costs just $30

3)      Sellers maintain total control 

Disadvantages:           

1)      Effective in a seller's market, not a buyer's market

2)      Very limited exposure-especially now that the majority of buyers search for property via the Internet

3)      No Realtors to help you sell (It is estimated that agents sell 85% of properties) because you are not listed on the MLS (Multiple Listing Service)

4)      Limited Internet marketing except for free websites such as Craigslist and other similar sites.

5)      The National Association of Realtors claims (likely true) that FSBO sellers sell for 32% less (sales price) than those properties sold by Realtors.

Conclusion:  FSBO listing is cheap but offers very little exposure and statistically yields a lower sales price.

 

(2)         FSBO using a FSBO marketing company/website such ByOwner.com, Buy Owner or similar sites.  

 

               Advantages: 

1)      No real estate commissions*

2)      Sellers maintain total control

 

        Disadvantages:           

1)     No Realtors to help you sell and no MLS (Multiple Listing Service)

2)     No  Realtor to pre-qualify the buyer

3)     Limited Internet marketing except for the website that you list on. 

*Oh no, the asterisks!...What amazes me more than anything is why the American public believes Buy Owner is a value. In a buyers market, which of course is the market we are currently in, the issue is a lack of qualified buyers. Those who pay Buy Owner $5,000-6,000 to advertise on their website are, in essence, paying a commission up front. There are no guarantees of a sale and as a matter of fact, the likelihood of selling without a Realtor in this buyers market is drastically reduced. It is absolutely the worst investment in America today.  

Conclusion:  Save yourself the up front $5K, list flat fee for $349 and then pay the commission from the sales proceeds.  This way you don't pay unless you sell. You keep your money in the bank earning interest and you let the Realtors sell your home for you.  By doing this you save about 3% because you replace the listing side of the commission with a flat fee. 

 

(3)      FSBO with MLS (flat fee MLS

               Advantages: 

1)      Small up front cost ($349-$1299)

2)      Sell it yourself (no agent involved), pay no real estate commissions (no   asterisks)

3)      Sellers maintain total control

4)      Superior Internet marketing (Realtor.com, Homes.com, Vast, Craigslist, GetMoreOffers.com, Trulia, Zillow, City Cribs, Realtor websites such as Remax.com, Coldwellbanker.com, Watsonrealty.com and more)

5)      Listed on the local MLS offering a commission only to the buyer's agent (usually 3% but can offer any amount)

6)      No cancellation fees or penalties

7)      Professional advice on pricing

8)      Contract representation available

9)      Listing plans that work for you such as Street Smart ADDvantage Realtor Eblast ($599) and ADDvantage Plus ($799 plus $500 at close) contract-to-close representation. 

 

Disadvantages:

       1)      Realtors can be aggressive or difficult to deal with

2)      Some flat fee MLS services don't answer their phone*

3)      Some flat rate MLS services have cancellation fees*

4)      Some flat fee listing services do not direct buyer leads to sellers*

  

*ADDvantage, a superior Florida Flat Fee MLS Listing Service, answers the phone 7 days a week 8am-8:00pm (even Saturday and Sunday)

*ADDvantage, Florida's most reliable flat fee MLS service, has no cancellation fees

*ADDvantage has fielded 946 calls after hours from Realtors and buyers the past 12 months and sends emails in real time to the seller about each caller.

 

To read more about listing flat fee in the MLS with ADDvantage please visit our Florida Flat Fee MLS Listing website and while you are there, read what our past client have to say about ADDvantage.

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