Should I Hire a Sales Professional or Sell It Myself?

By
Education & Training with Kezhi International Consulting Co. - Vancouver, B.C.

 

   I’ve become a very savvy computer whiz through my former education in Math & Science, being a former educator and having all of those SEO’s on ActiveRain teaching me and all of the other co-computer savy REALTORS®.  The Information Era is here to stay!!!

Today, salespeople who accept & embrace the internet ultimately make their businesses more profitable, while the Realtor who chooses to ignore the internet usually pay the price by going “Out of Business” very quickly.   The Realtors who recognize this & make it easy for their consumers to access their information and see what makes them superior also succeed in generating many more sales.    We have on our fingertips, the ability to analyze our customer’s behaviors by the way they navigate on our particular websites.  That can tell you a lot about your local customers.

So the question is; Will it create more FSBO’s (For Sale By Owner)?  No, only if we educate the uneducated consumer on the benefits of using a REALTOR®. 

Today, many uneducated consumers fail to see the value of the services of a REALTOR®.   Consumers want to save on the commissions, but many don’t get the proper exposure of their property to their potential buyers.  With today’s fluctuating market, many of these FSBO’s are either priced too high or too low. Therefore consumers don’t have the most accurate info on their fingertips about what their property is really worth.   These consumers are NOT prepared for the disturbing phones calls, unqualified buyers and stressful negotiations that will be needed.   The FSBO owner isn’t aware of the potential legal current issues needed before closing their property. 

For Sale By Owner (FSBO) Statistics from 2008 NAR Source: 2008 National Association of REALTORS® Profile of Home Buyers and Sellers

 

FSBO’s accounted for 13% of home sales in 2008. The typical FSBO home sold for $153,000 compared to $211,000 for agent-assisted home sales.

FSBO Methods Used to Market Home:

  • Listing on Internet/FSBO website: 45%
  • Yard sign . . . 42%
  • Friends/neighbors . . . 33%
  • Newspaper ad . . . 22%
  • Open house . . . 18%

Most Difficult Tasks for FSBO Sellers:

  • Selling within the planned length of time: 13%
  • Getting the right price: 12%
  • Preparing/fixing up home for sale: 11%
  • Understanding and performing paperwork: 10%
  • Having enough time to devote to all aspects of the sale: 8%

 

Online FSBO’s offer a variety of services such as; online advertising or auctions, possible time on a cable network, sign kits, brochures or guides on how to sell your home, staging, lawyers, appraisers & access to mortgage brokers.  They can charge home sellers $300-$1,200 depending on the services requested.  The best part is that most consumers are not aware that these are all available for FREE from most real estate board offices, realty companies and their salespersons.

 

The BIGGEST problem here is those FSBO consumers don’t have access to the huge group of salespersons and their buyers, since they are NOT part of the REALTORS®' MLS listing system.  So the homeowner is basically isolating themselves & their properties by eliminating most potential buyers and salespersons.

 

In conclusion:                                                   

 

Professional REALTORS® will:

 

1)   Receive all the calls: good & bad.

2)   Ensure that only qualified buyers see your property, thus eliminating people who are just “nosey” and endless traffic in your home.

3)   They gather all the feedback from potential buyers.

4)   Address the sellers on any concerns coming out of the showings.

5)   Discuss the latent defects that are usually not readily observable by the seller themselves.

6)   Will negotiate the best possible deal for their sellers, from their exposure to negotiations on a daily basis.

7)   Your successful agent will know how to find the right info (online or offline) and use it to their seller’s advantage.

8)  Are aware of the time constrictions of their sellers and will help to sell it on a timely manner.

 

Now, knowing this, my question is; "Why would you not hire a REALTOR® to sell your home?"

 

 

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  1. David Nicholson 02/09/2010 01:14 PM
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Topic:
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Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Jim,

As long as we REALTORS stay on top of our industry and technology, we will expand our business!  Hope the weather in San Diego is warmer than here!!!  ;>))

 

Hi Carole,

I agree!!! People have to understand we are great at our job, since we do it daily and like any other profession, we take our jobs seriously!!!  Stay warm down there, my Italian Aunt was telling me the temperature in Staten Island, NY and it's freezing down there also.   ;>))

February 01, 2010 07:31 AM
Rainmaker
556,060
Cherise Selley
Colorado Springs Realtor
Selley Group Real Estate, LLC

FSBO's are a nightmare these days...There are too many roadblocks for the seller to encounter... As for the buyer, there's too many uncertainties with the financing...Realtors are needed now more than ever within this fast-moving industry...Cherise

February 01, 2010 08:19 AM
Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Cherise,  I agree substantially, since many FSBO sellers aren't prepared for today's challenges; electronically, financially and in a timely manner!!!  ;>))

February 01, 2010 09:07 AM
Rainer
19,886
Paul Burns
Century21 Countryside Realty Ltd.

Hi Ann - Marie;

Good Post.  After the very one-sided article in the Weekend ROB you would begin to wonder if we were all cursed or something.  I think the smarter, more experienced buyer and seller understand the value we bring to the table and that we are substantially more than a taxi driver with a key box key.  However, you are aalso correct when yo say we need to be professional and on top of our came to justify our commissions.

Happy selling from Moncton NB

February 02, 2010 02:36 PM
Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Paul,

Nice to see you here on ActiveRain!!!  The more knowledge on technology, marketing, staging, etc the better we are for our sellers!!!  The educated consumers will always look for us and we will stand out of the crowd and grab future opportunities...  ;>))

February 02, 2010 06:29 PM
Rainmaker
583,335
Sharon Lee
Sharon Lee's Virtual Assistance

Hi Ann-Marie-I think it is foolish to try to sell your home without a realtor. <SMILE>

February 02, 2010 09:42 PM
Anonymous #9
Anonymous
Anonymous

How can anyone argue with that? Like many professions, real estate is sometimes missunderstood.

February 03, 2010 12:58 PM
Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Sharon,   It's like anything else, if you are a professional and do you job daily, the results are you are an EXPERT in your field and consumers should realize it!!!

                                                ;>))

 

Hi Greg,   That's why we need to continuously "educate" the public to our Expertise and why they need us!!!  ;>))

February 03, 2010 03:21 PM
Rainmaker
703,880
Claude Cross
Charlotte NC Homes For Sale
Claude Cross-Charlotte NC Real Estate(Homes By Cross, Inc.)

Self surgury is never advised as a cost savings. Your 8 points are very valid and ring true for me. I still have more paper that i wish to store. I am hoping for the day I can forward a disc or an e-document. Alas they still demand paper here as the true documentation

February 03, 2010 10:06 PM
Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Claude,

Many REALTORS are ahead of our time, especially the productive ones!  Society is beginning to change, just remember the average person & business needs many years to change their habits.  Our kids were raised with technology in their hands since birth, they will be the ones who decide paperwork is useless and they will have alternative methods for saving the data without losing it and will probably do much more of their businesses with the use of technology with less traveling time!  ;>))

February 04, 2010 05:30 AM
Ambassador
405,056
Jo-Anne Smith, Sales Representative
Oakville, Burlington and Mississauga Region Real E

Ann-Marie,

Great points! Plus they should know that a professional sales rep will usually net them much more money in the long run, thereby covering their commission and then some.....with these facts in hand, why would anyone want to try and sell their property on their own?

Jo

February 05, 2010 09:23 AM
Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Jo-Anne,

Hopefully, more people begin realizing this, especially the fact that the sellers will get "the biggest bang for their bucks" in the long run!!! ;>))

February 05, 2010 09:32 AM
Rainmaker
270,495
Ross Quintana
Spokane Washington Real Estate - 509-362-1966
TQ Real Estate Coaching

Ann-Marie,

Great posts you covered most of the key points. FSBO market is my main market and there are many angles to educate them. In this market I tell them that they are in the toughest spot because if it is so competitive that average agents can't get homes sold with a full marketing plan and homes are expired, then a FSBO with even less advertising is probably not going to sell. The market a few years ago was prime for FSBO's because just putting a sign up with limited inventory and lots of buyers would get the job done, now it is the opposite there are gobs of homes and less buyers. This usually illustrates how bad it is for them.

February 08, 2010 01:23 PM
Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Ross,

I agree, even up here in Saint John, New Brunswick (Atlantic Canada) we are having the same problem!  Too many homes on the market and no buyers, due to the economic forecast with the energy sector.  Hope you have a moving market this year, it's got to be better than last year!!!  BTW:  Do you guys still have the "Red Wagon" kids park and the "Carousel" in Spokane?  I have photos of my youngest daughter playing by the "Red Wagon" and the "Carousel" when we lived in "The Tri-Cities" (Richland, Pasco & Kennewick)...  ;>))

February 09, 2010 03:36 AM
Rainmaker
270,495
Ross Quintana
Spokane Washington Real Estate - 509-362-1966
TQ Real Estate Coaching

We sure do, it is down at Riverfront Park, I take my kids there all the time. If you ever get in town look me up and we can do coffee and I would be happy to help anyone you might have down here and I will keep you in mind also.

 

February 09, 2010 09:38 PM
Rainmaker
511,963
Russell Lewis
Broker,CLHMS,GRI
Realty Austin, Austin Texas Real Estate

Ann-Marie this is an excellent post on the subject and there will always be folks who think they can do without  our professional services as well as a number of people and websites etc who for a small fee will encourage them to do without us too! I still think the large majority will continue to rely on a professional became as we both know, it's just not a simple proposition to sell a home yourself!

February 16, 2010 11:39 PM
Rainmaker
908,080
Bill Gassett
Metrowest Massachusetts Real Estate
RE/MAX Executive Realty

In a challenging Real Estate environment it is nearly impossible for a FSBO to sell their home. People live and learn because more often than not they think it will be different for them.

February 17, 2010 08:03 PM
Rainmaker
951,458
Kathy Clulow
CNE - ASP - SRES .... Uxbridge Ontario Real Estate
RE/MAX All-Stars Realty Inc. Brokerage

Interesting to note a local FSBO Company here in our part of Ontario seems to have given up on AR. Their last post was back in October 09

February 20, 2010 10:58 PM
Rainmaker
101,432
Matthew Naumann
Goose Creek, SC Real Estate Agent
Exit Realty Charleston Group

Ann-Marie,

Great Post.  It is amazing how many try to sell on their own especially in the current real estate market.

Thanks for sharing,

Matt Naumann

March 30, 2010 12:27 PM
Rainmaker
167,002
Ann-Marie Clements
M.S. Ed., Principal
Kezhi International Consulting Co. - Vancouver, B.C.

Hi Matthew,

I believe the country is ready for a turn around...  I'm getting ready to possibly move from Canada and back to the U.S.  My spouse is looking at 4 jobs; one near Charlotte, SC, Raliegh, NC, Pittsburgh, PA and also Idaho Falls, ID...  As liberal as I am (moderately anyway), I think I'd prefer SC, NC or PA...  Idaho Falls scares the "life out of me"...   Thanks for the feedback...  ;>))

March 30, 2010 02:36 PM
Anonymous
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Rainmaker
167,002

Ann-Marie Clements

M.S. Ed., Principal
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