FSBO's - Are You Planning to Sell Your Home Yourself?

I appreciate your view and think it's fantastic that you've found a way to be unique in your market amongst other Realtors and provide a form of value specific to your cliental. 

In our pursuit to help those who wish to sell their home on their own, we're absolutely not disagreeing with them if they've made that choice.  In fact, in our blog post, we're providing a factual resource (information of Value) while offering those who are interested the idea of a higher level of service the option - through consideration of a professional Realtor.  We understand and embrace the value we bring to others as "full service" real estate professionals.

Respectfully considering that every market is different and there are different market demands, this too falls into play with FSBO's.  In "our area" FSBO's have an unmatched success rate as it relates to actual sales when going through a Realtor vs attempting to sell their home on their own.  Numbers are numbers - our market has its own voice and it simply responds in favor of Realtors.  Moreover, there is still a significantly higher success rate when using a Realtor in every market for that matter.

I would agree with you that FSBO's can post their listing such as on Craigslist, get a yard sign, have some flyers printed, get guidance and copies on the necessary forms and legal docs, request a CMA from an Agent, do some market history on their own, hold their own open houses, reach out to agents and... work a full time job or two, while trying to have a balanced family life... etc.  They can do A LOT of things, but at what point does someone stop and realize that the emotional investment, time and money spent may just be better invested in a professional that truly has "better odds" of getting the job done, in a timely manner and for the majority, bringing in a higher return on the investment?   

I can personally relate with this... When I'm ill, rather than going to the doctor, I can hop on Google and do a bit of research on my own, dig up some home remedies and call around for advice - and, this is great.  I may actually feel better - even if for only a while.  But, let's face it...  In most cases, and as with just about anything... One thing tends to lead to another.

So, beyond the common cold, my "long term" health and wellbeing is just far too important.  I value the experience of our family doctor and his preventative healthcare... More importantly, I like and "trust" him.  I'd hate the idea that I could possibly ignore something that could lead to something else... or worse, lead to something potentially more serious that put my family, my children or myself at risk... And later be saying "If I would have only just gone to the Doctor." 

As Realtors, our value in the lives of others is much the same.  We're dealing with people's most precious life investments(s), people's livelihoods and futures, "long term" investments and even retirements.  What we do is not rocket science, but it's a collection of experiences, resources, talent, ability and leverage that is not just second nature.  It's a craft just like many things, and some just happen to be better at it than others.

This is my take...

•·         In the event that a FSBO was to weed through it all and sell their own property, they would either have to process the pages and pages of paperwork or pay a fee or percentage to do so - typically 1% of the sales price.  

•·         Let's also address that they will most likely be paying a BAC - Let's face it, Realtors are usually the ones bringing in the buyer.  This should respectfully be at least 2.5% to 2.7%. 

•·         Now, money invested in marketing with the sign, flyers and news paper ads- let's just use a minimum expense of $500 hundred dollars.  This is "considerably" low since we pay thousands per month in advertising and as Realtors, our team spends a healthy percentage to market and advertise "each" property we represent and sell.

•·         Duration costs are ever so important to keep at top of mind because FSBO properties on average take longer to sell if they sell - Now, this will unfortunately result in carrying costs of additional mortgages and utilities due to the extra DOM - this could easily equate to thousands.

•·         Statistics prove that on average, FSBO properties sell for lower than properties represented by a Realtor.  Again, we're talking about the potential loss of thousands again.

•·         Inability to participate in some of the most trafficked "professional real estate" sites only offered to Realtors and home magazine publications, again only offered to Realtors (We've had several sales result from these from the 200's to millions, so we believe in this type of marketing.)

•·         Let's not forget the emotional time and investment - For some, how can you even try to put a value on that?

•·         In our experience with FSBO's and even seeing other agents work with FSBO's, we save them money.  Even when using a full service Realtor.  These bullet points are typical and must always be considered when selling on your own.  After considering all these statistical factors, the commission they would pay a Realtor to list and sell their property would in the end pay for itself... If not more.

The point - It's a gamble.  Some win and some lose... But more lose.  Like you said, they end up liking you and what you have to offer and just end up going through you anyway.  Long in the short, that is our point.   Using a Realtor is simply the better option for so many reasons.

Good job to you for finding a niche that works within your business.  Offering FSBO's your time, some convenient and helpful free services, a flat fee option and the transition of them utilizing your real estate services sounds like it may be paying off for you.  Not a lot of agents seem to really embrace the FSBO market, and we too provide unique services to FSBO's.  We even provide them with a FREE do it yourself kit, among other things. 

If you continue to run your business offering everyone the same level of service and always providing something of value, then you will have no choice but to create a successful environment around you. 

Best of luck in 2008

Amber Gardner

The Gardner Team

www.TheGardnerTeam.net

Thanks Kaleb.  It's pretty simple stuff huh?