For Sale by Owners
As a Realtor one common listing I run into is what most people call a For Sale By Owner, which is also known as a FSBO. A FSBO is a home that is listed for sale by the owner of the home rather than listing with a licenced Real Estate agent. Owners may have many different reasons, For Sale by Owner vs. Real Estate Agent, but I wanted to share some information to anyone that is thinking of listing their home FSBO. My goal is to make consumers realize what you lose by listing your home by yourself and to evaluate if that loss is worth it.
Talking to FSBO's
Agents make a lot of phone calls to people and some of these calls go to FSBO’s. When asked what the main reason they have listed the home the way they have, the most common response is they want to save on commission. So in order to save money on commission, it means you lose benefits of having an agent. Below are benefits you miss out on when you avoid agents.
Benefits of a Real Estate Agent
First, you lose a licensed professional representing you. Someone who fights for you to get you the most money for your home. When you list your home as a FSBO you are getting away from paying the commission to a seller agent, but in order to keep your home in the eyes of as many buyers as possible you still need to offer to pay the buyers agent commission. This means you are paying someone to negotiate against you so why would you not want to pay someone to fight for you. This doesn’t just come down to the final price of the home but also all the terms and contingencies in the contract. When working with a great real estate agent/team they also don’t just stop when the contract is complete. Having someone to get you to the finish line is just as important. A realtor that has gotten hundreds of homes to the closing table will make you feel much more secure once you have a contract on your home.
Second, is being able to get your home in front of as many potential buyers as possible. Something a lot of people don’t know is that The New Home Collective are able to get your home on as many as 350 websites. The majority of FSBO’s that we speak to only get it on 1 or 2. There is no way to track how many buyers are coming from each website but if you are only getting it on less than 1 percent of the possible sites you can do the math. Advertising a property is exactly how you get the most money for it. Just like anything else the more buyers you have for a product, the higher the price will go. Listing with the right real estate team will make all the difference when it comes to exposure.
The number one question to ask anyone thinking of listing or that has already listed their home FSBO is “If we areable to show you a way to net the most money even after paying commission would that be worth 20 minutes of your time”. The reason this is a question we ask is because if a person really thought about that the obvious answer would be yes. If someone could make them more money then they would be able to make selling it themselves and take almost all the burden of selling the home away, why wouldn’t that be worth it. This is what we do with any FSBO that our team lists. If we are not able to give you the value that you deserve why would you list with us. With any FSBO that we list we strive to make you our commission back plus more. A 20 minute interview with us will show you how we are able to do this.
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