Are You Selling "For Sale By Owner" Consider "Not" & Save Time & Money

Reblogger Charita Cadenhead
Real Estate Agent with Keller Williams Realty

I could not have said it better myself.  Who can really blame a FSBO for trying to save money on commission?  Not me.  But in the end, selling FSBO will likely cost the seller money rather than save them money.  Nick hit the nail on the head when he mentioned that yard signs, flyers, and print ads don't even begin to put a dent into the efforts of real estate agent's marketing arsenal.

Original content by Nick T Pappas

Are You Selling "For Sale By Owner" Consider "Not" & Save Time & Money

Are You Selling "For Sale By Owner" Consider "Not" & Save Time & MoneyWhen you decide to sell your home, For Sale By Owner ("FSBO") everyone knows why...it isn't rocket science, you want to save money...right??  Let me offer a few statistics and personal observations experience has given me over the years.

According to the National Association of Realtors only 10% of all home sales in 2011 were "FSBO" related and that the average sale price was $150,000 while sales involving Realtor assistance or representation averaged $215,000.  Clearly I think, there is more to selling, marketing or bringing your home to the attention of those who want to buy and for more money.  Realtors have a great many resources and tools at their disposal to help you sell your home faster, and for more, saving you your hard earned equity or possibly from having to bring money to the closing table as we slowly emerge from a difficult housing market.

A good agent will probably list your home on dozens of websites, give you social media exposure, your home should easily be found on the first page of a Google Search.  Single property websites, blogging about your home, QR Codes, the list goes on of available tools used by a real estate agent.  You notice that I didn't mention yard signs, newspaper ads, flyers...these are all things that a "FSBO" will use as well as the Realtor, but one thing most agents realize is that print...newspaper ads, are not cost effective with only about 6% of buyers finding their home in the papers compared to 90% of buyers finding their home online.  My company website (there are several) receives about 135,000 hits a month...we take online presence very seriously.  I've only had a hand full of calls generated over the last couple of years because of Open House ads.

A good Realtor knows what it takes to present your home to the home buying public and has the time to do it.  From needed repairs, knowing the required paperwork to the all important "getting your house priced right", and making sure the person submitting an offer on your home can qualify for a mortgage.  

One last thing to consider; I began this post saying that everyone knows why you are selling "FSBO"...to save money.  Buyers know this and know you are not paying the Realtors brokerage fee.  The buyer is going to figure out what that might be and reduce it from your list price plus any other reason they can think of to reduce the offer...and it really doesn't matter where you price your home selling "FSBO"...you are still going to get penalized by the buyer.  Price your home too high and you won't get any offers or showings...price it where you think it should be without the aid of an agent and you'll still get dinged for not having an agent.  Realtors know the questions to ask and how to negotiate the best price and terms on your behalf, if you're still undecided give me a call or send an email...I'll answer your questions and show you a better way to keep more money in your pocket.

Nick T Pappas

 

 If you need a knowledgeable real estate professional in Madison or Huntsville Alabama area, why don't you let me Google that for you! I also know outstanding agents in all states and Canada should you need help relocating to a new area.

 


close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At

Anonymous
Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,930,488
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thanks for reblogging, I hope FSBOs will read it.

Jul 24, 2012 04:28 AM #1
Rainmaker
140,444
Faith LaRosse
Springer Realty Group - Douglassville, PA
Realtor(R)

It seems that no matter how much information we provide, FSBO's seem to think their case is different and it will some how turn out better for them.  When the truth is, the commission that they are trying to avoid is simply an investment in a solid transaction. 

Jul 24, 2012 04:30 AM #2
Rainer
169,745
Richard Burge
Coldwell Banker Sloane Realty - Sunset Beach, NC
ABR - Property Manager - Notary

I think the most important issue that the FSBO overlooks is how do they qualify the buyer? 

Is the buyer able to purchase the property or is it just a way to look at what you have in the home for a possible theft.

Seller beware of looky looks...

Jul 24, 2012 04:41 AM #3
Rainmaker
716,245
Sharon Parisi
Keller Williams Dallas Premier Realty - Dallas, TX
Dallas Homes

Charita, thanks for calling our attention to this great post! I missed it the first time around.

Jul 24, 2012 05:13 AM #4
Rainmaker
337,654
Jennifer Prestwich
Henderson, Thornton, Broomfield and Westminster - Henderson, CO
Your Castle RE Colorado

Thanks for re-blogging Charita.  I missed it the first time around, and it's a great post!

Jul 24, 2012 06:30 AM #5
Rainmaker
1,027,058
Nick T Pappas
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Charita, just wanted to thank you for the reblog.  I completely understand the sellers motivation, but they don't realize how much that decision actually hurts them in the long run.  Richard#3 brings up another good point about the possibility of theft.  Thanks again.

Jul 24, 2012 09:41 AM #6
Rainmaker
1,293,922
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

I understand the FBSO too, and their need to save when they can.  It's been such a touchy market that listing with a brokerage might be the difference between a short sale or equity sale.  I showed a FBSO this weekend -- I wish they had listed it with an agent who would give them some showing advice, it might have come in handy.

Jul 24, 2012 06:17 PM #7
Rainmaker
575,215
Valerie Zinger
House Proud Ottawa-Ontario-Canada - Ottawa, ON
Home Organizer
Charita. Excellent post for a re blog. FSBO make so many mistakes but the lack of advertising is the most critical. Even a bad price can be negotiated but getting no one in to see the house is not going to make a sale.
Jul 31, 2012 03:18 AM #8
Anonymous
Post a Comment
Spam prevention
Show All Comments
Ambassador
685,078

Charita Cadenhead

Serving Jefferson and Shelby Counties (Alabama)
Ask me a question and expect an answer.
*
*
*
Spam prevention

Additional Information