NO AGENTS! NO AGENTS!! NO AGENTS!!

Its like any advice.. its easy to give and hard to take!

Except those smart enough to do their own research...I have no problems taking advice.

Any good agent will get about 26% more money for the same house as a For Sale By Owner!!

As much as that statement works for Seller's Agents, it works AGAINST Buyers & Buyer's Agents....If that is true, then Buyers should almost exclusively look at FSBO properties, because they can expect to pay 26% more for the same house if an Agent is listing it.

-Peter H.

Peter, how come buyers ARE NOT exclusively looking at FSBO properties? How come the vast majority of buyers prefers working with a professional? Because most FSBO's don't succeed in selling their own home.

Johnathan

You said:

If I was a For Sale By Owner I would not be so hard headed and I would ust pick a good agent!  Any good agent will get about 26% more money for the same house as a For Sale By Owner!!

I would like to read the article that his statement was from. Can you create a post to share it with others? I am going to subscribe to your blog so I don't miss it.

Peter makes a good point.

Thanks

I would agree that Peter makes a good point that Buyers should work more with FSBOs since they expect to pay a lot less. Yes, theoritically! However they work mostly with realtors. Why? Because most FSBO transactions have two parties with no knowledge and experience and don't have a clue what they are doing. Is the price really a bargain or is it something wrong with the house? Any un-disclosed items or issues, any liability issues, and on and on.... and in a lot of cases as Erica mentioned, the FSBOs blinded by their emotions, overprice the house and turn off a lot of would be buyers.

So, the buyers prefer to work with a Realtor that will guide them thru the process, present them with a list of properties to choose from, do all paperwork and coordinate all that needs done: lender approval, appraisal, inspection, all the way to closing. And the buyers feel (and rightfully so) that they are working with a professional that knows the business and the law, and is making sure their interests are protected.

Actually, all I was saying is that it is a bit inconsiderate for Seller's Agents to constantly say that they will get 16%, 26%, or x-amount more for house than a FSBO, because it actually encourages Buyers to hold on to the belief that a home listed by an Agent is selling for an inflated price, which in turn makes it HARDER for a Buyer's Agent to work with these wary buyers, and ultimately leads to a lot of lowball offers.....why not just word it a little differently, for example:

"Any good agent will get TOP market value for their Listing, compared to many For Sale By Owner listings that often sell for BELOW market value."

That way, a Buyer won't have cause to suspect that Agents are merely inflating home prices by 16% or 26% or whatever that magic number is.....By avoiding unfounded quantitative claims, Seller's Agents can make life easier for themselves, for the Buyer's Agents who bring offers to them, and for the industry in general.

Meli & Andrea, I hope you guys understand my point here...

-Peter H.

No question it can be more convenient for a buyer to work with a realtor to find a home. Especially since the seller is paying the commission. However, more and more buyers are buying privately as the FSBO market grows.

Realtors have to realize that technology has changed their industry and will continue to do so. Buyers and sellers can find anything they want on the ‘information highway'. Nobody will argue that all of our lives have changed dramatically in the last 12 years.

I was an agent for 15 years and now I operate a FSBO company. I feel that this business will explode in coming years. As the young, internet savvy generation get older and enter the real estate market place, more private sales will come on the market.

I am learning more about the FSBO business everyday. When I started, I thought the #1 reason sellers decide to go the FSBO route is to save commission. What has surprised me is there is another reason that could be tied for first place. I am referring to the owners past experience with a realtor. Everyday I talk to someone that has a story to tell and they have decided to go the private route. There are a couple of sellers on my site now that cancelled their realtor listing to sell privately.

The good realtors are unfortunately in a business that has been tainted by some bad ones. The same can be said about car sales people. Everyone reading this post knows a good one, however their industry ranks low in the public's perception.

Sellers are becoming more conscious of spending thousands of dollars in real estate fees. A commission of $15,000 saved will be a nice contribution to their retirement plan or pay for a cruise with enough left over to use as a down payment on a new car. 

It might be best for Realtors to look for ways to work with FSBO's, rather than fight the system. 

I agree.  Offering to help with purchase agreements or market comps is a good way to start

Finally I have made a comment in a FSBO forum and not been hit with some unprofessional responses.

I have worked with FSBO's for the past 1 1/2 years. These people need help if they think they are going to sell privately. I have heard it said that people are lazy in some things they do. This statement is especially true when looking at what a for sale by owner is doing to market their property.

I was an agent for 15 years. If I got back into the business and decided to work with FSBO's, I would look at these opportunies.

Most private sellers have a for sale sign on their lawn that they bought at Home Depot. It is nailed to a stick and if it is still standing, it has quite a tilt to it. I would offer to install a sign post. In my area I pay $27.50. I would try to get them to pay for it and if not, I would. Some agents use the metal stands that a sign slips into. You could loan them one of these. If their phone number is fading on their sign, you can print labels inexpensively. Make sure to use a permanent, weatherproof label. Check with Avery.

You can supply them with a professionally done color brochure for them to hand out at open houses and to prospective buyers. You might already have a program on your computer to compose one. Use a better quality paper. Take some photos of the home to include. What do you think you will put on the back? Well, you can put some promotion for yourself. You might get a mortgage broker, stager and home inspector to chip in. Your cost could end up to be zero. You can add a brochure box and keep it full. See what I do for FSBO's in my area. 

As you can see you have not been a threat to a FSBO by offering this service. You have provided ways for them to promote their property in a professional manner. I have seen figures that state that over 80% of FSBO's end up listing with an agent. If that is the case and you help the seller by doing what I have mentioned, do you think you have a good chance? Make sure to tell them that when they want the sign down to call you. Hopefully they have not already listed with another agent.

By doing the above, you can see you have demonstrated to the FSBO that you work to sell a listing. This should increase your chances when they want an agent.