Realtor vs FSBO
Posted 05-18-2014 at 07:55 AM by moorewny
Most often people will interview a few agents and get an estimate on what their home is worth. Only to then take the highest figure an agent gave to them, place there home "For Sale By Owner" and wait.
Your first call comes in and you schedule the appointment. You wait and wait and no one shows (This happens about ever other appointment). You set another appointment and when they show they pull up in a beat up truck that looks like something out of the movie Jeepers Creepers
. You let them in only to find out that your 200,000 home they want to know if you will do "rent to own" (You need to sell in order to purchase your next home you cant do that)
Many more calls come in and one couple tell you they want the house, will pay full price and will keep in touch.
You couldn't be happier. So now when people call to see the house you tell them. You have someone interested and your no longer showing the house.
After several failed attempts to get in touch with the couple no one returns your call (oops they couldn't get qualified so avoiding your call was the easy way out), you start up the showings again.
Its now been 4 months and no one has purchased your home. But the other 2 houses on your street that were listed with a Realtor that were not at all as good as your home have sold and the new neighbors are moving in. Wait isn't that the couple that said they wanted to purchase your home?
What went wrong?
Most first time home buyers don't know the first thing in purchasing a home no matter how much research they do. Because it cost the buyer nothing to work with a Realtor they will work with one to help them through the steps of purchasing a home. From financing to closing... Why didn't that agent show them your home? If your a FSBO more then likely you either don't like agents or you think you know more then they do... this will never make for a good business relationship.
Don't get me wrong about 15% of FSBO are sold but they are generally sold much lower then they wanted, more cost to sell for the months of turn over costs holding onto the home. And they will offer a buyers agent the commission to help with the house BUT ONLY "if they get their price". Which means the agent will now have to ask the buyer to cover their commission and that is not what a buyer wants to hear considering they have to come up with already so much to purchase the home. So they go down the street or in the neighborhood, see a similar home and go through with the purchase on that one.
If you knew you could get your home sold quicker and for more money, without all the hassles of showing the house to people who don't show, or better yet to buyers who couldn't get a loan wouldn't you list with a Realtor?
Mind you I show all my clients any home out there and when I have depleted my search I will look at FSBO homes in that area to help my client, with the understanding that they sign a little paper called "A buyer broker agreement". One part of this agreement explains to the buyer that if we should purchase a FSBO and the seller wishes not to pay my full commission the buyer will be held responsible. 9 out of 10 times I will not get the signature of the buyer because they don't (nor do I) fell it's fair that they should have to pay for the sale of your home. They are already placing thousands of dollars down at closing and making one of the largest purchases they may ever make in their life. Why should they add more on top of it. And that 1 that wasn't mentioned out of the 10 that did sign never looked at fsbo's
I want to leave you with some food for thought
"If the FSBO lists their home because they don't like agents, don't you think that agents done like FSBO's'?
Your first call comes in and you schedule the appointment. You wait and wait and no one shows (This happens about ever other appointment). You set another appointment and when they show they pull up in a beat up truck that looks like something out of the movie Jeepers Creepers
. You let them in only to find out that your 200,000 home they want to know if you will do "rent to own" (You need to sell in order to purchase your next home you cant do that)Many more calls come in and one couple tell you they want the house, will pay full price and will keep in touch.
You couldn't be happier. So now when people call to see the house you tell them. You have someone interested and your no longer showing the house.
After several failed attempts to get in touch with the couple no one returns your call (oops they couldn't get qualified so avoiding your call was the easy way out), you start up the showings again.
Its now been 4 months and no one has purchased your home. But the other 2 houses on your street that were listed with a Realtor that were not at all as good as your home have sold and the new neighbors are moving in. Wait isn't that the couple that said they wanted to purchase your home?
What went wrong?Most first time home buyers don't know the first thing in purchasing a home no matter how much research they do. Because it cost the buyer nothing to work with a Realtor they will work with one to help them through the steps of purchasing a home. From financing to closing... Why didn't that agent show them your home? If your a FSBO more then likely you either don't like agents or you think you know more then they do... this will never make for a good business relationship.
Don't get me wrong about 15% of FSBO are sold but they are generally sold much lower then they wanted, more cost to sell for the months of turn over costs holding onto the home. And they will offer a buyers agent the commission to help with the house BUT ONLY "if they get their price". Which means the agent will now have to ask the buyer to cover their commission and that is not what a buyer wants to hear considering they have to come up with already so much to purchase the home. So they go down the street or in the neighborhood, see a similar home and go through with the purchase on that one.
If you knew you could get your home sold quicker and for more money, without all the hassles of showing the house to people who don't show, or better yet to buyers who couldn't get a loan wouldn't you list with a Realtor?
Mind you I show all my clients any home out there and when I have depleted my search I will look at FSBO homes in that area to help my client, with the understanding that they sign a little paper called "A buyer broker agreement". One part of this agreement explains to the buyer that if we should purchase a FSBO and the seller wishes not to pay my full commission the buyer will be held responsible. 9 out of 10 times I will not get the signature of the buyer because they don't (nor do I) fell it's fair that they should have to pay for the sale of your home. They are already placing thousands of dollars down at closing and making one of the largest purchases they may ever make in their life. Why should they add more on top of it. And that 1 that wasn't mentioned out of the 10 that did sign never looked at fsbo's
I want to leave you with some food for thought
"If the FSBO lists their home because they don't like agents, don't you think that agents done like FSBO's'?
