What every seller should know about FSBO's

By
Real Estate Agent with Cape Fear Real Estate Solutions, LLC

Even in this tough market, there are sellers who haven't seen the light.  I can understand where they are coming from, who wouldn't want to save 6-7% on fees when selling real esate.  But there are a few points that should be taken into consideration.  1) The practice of real estate brokerage has been around for over a century.  Things that aren't worth the cost simply do not last.  2) On average, homes sold with the assistance of a broker sell for more money and in less time. 3) The basic economic principle of opportunity costs suggest that it is more profitable to focus on ones area of expertise than to attempt to be a jack of all trades.

A few reasons why the above are true:

A) People only shop FSBO's to find bargains.  Otherwise, why not just get with an agent, use their gas, time, resources, and expertise.  The normal commision, as the buyer sees it, comes right off the top of the buyers' offers, if it gets to that point.

B) Agents have the resources to get the word out about the listing. The mls alone has the power to reach thousands of potential buyers. In order for a FSBO to match the exposure an agent can achieve, the FSBO would have to spend a fortune and lots of time.  This time could be spent doing something more productive and profitable

C) Most average people do not know the ends and outs of what is required to sell a home.  The liability alone can be highly costly to the seller if something is handled improperly and the seller is sued. 

D) Professional negotiations can be the difference between 2 happy parties going to closing, and a deal that will not work.  Third parties can help filter out the emotions and get down to what is really important. 

E) Handling the transaction can be a chore.  People think that once an offer is accepted, the deal is done.  This could not be further from the truth.  Many things can go wrong, and without someone who knows how to handle the process a deal can fall apart very quickly.

Selling a home should be left to the pros.  When the right information is presented to the seller, it shoudl be a no-brainer.

 

 

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Rainer
81,219
David Width Jr.
Coldwell Banker Red Top Realty

Very good post. You hit on a lot of kep components as to why using a real estate broker is worth the money.

January 21, 2009 12:30 PM
Rainer
18,606
Kenneth Fisher
BeachTownBrokers.com, Remax Essential - Wilmington, NC
Cape Fear Real Estate Solutions, LLC

A lot of times FSBOS are too focused on the trees to see the forest.

January 21, 2009 01:24 PM
Rainmaker
723,212
Richard Weeks
Realtor, Associate Broker - Manager Business Development
Waller Group

Kenneth,

Well said. FSBO's are very low hanging fruit.  Easy to convert just take it slow and no pressure.

January 22, 2009 09:27 AM
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Rainer
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Kenneth Fisher

BeachTownBrokers.com, Remax Essential - Wilmington, NC
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