Long Island FSBO’s and the Multiple Listing Service (Part 3)

In part 1 of this series, Long Island FSBO's and the Multiple Listing Service, it was discussed that there is a business model that allows homeowners to appear on the Multiple Listing Service (MLS) while still having all of the responsibility of selling their home on their own. 

In part 2 of this series, Long Island FSBO's and the Multiple Listing Service (Part 2), I addressed the issue of how flat fee brokers don't have the same incentive to get the home sold as a full service broker does because they are paid in advance, rather than after the home is sold.

In this part of the series, I will discuss one of the most important factors that homeowners fail to address when deciding to sell their home on their own - putting aside their emotions when negotiating. 

Many people feel that they are best suited to negotiate the sale of their home because they have the most to gain or lose during the negotiations.  A common misconception is that agents and brokers are just looking for "fast" deals so that they can move on to the next sale, and not the "best" deal for the homeowner.  This may be true on occasion, but it is more the exception than the rule.

The truth of the matter is that agents and brokers are trained to make decisions based on facts, whereas homeowners are more likely to base their decisions on emotions, and there is a logical reason for this.  When a homeowner decides to sell their home, they usually don't think of their home as a product.  They think of their home as a place where holidays were celebrated, where life-changing events occurred and where memories were made.  Homeowners take pride in any improvements that were made, and often times give these improvements undue weight when negotiating the sale of their home.

There's nothing wrong with having an emotional attachment to a home, nor is there anything wrong with being proud of the work that has been done.  However, when it comes to negotiating, pride and emotion have a way of clouding one's judgment, which often leads to illogical decision-making.

When choosing to hire a brokerage whose only service is to place a home onto the Multiple Listing Service, homeowners take on the burden of directly negotiating the sale of their home.  Negotiation, like most things in life, is a skill that requires constant practice to perfect.  A homeowner that sells a home every few years will still only have a fraction of the negotiating experience that an experienced agent has, and thereby will have a difficult time achieving the same results.

There are other factors to consider when negotiating the sale of your own home as well.  In part 4 of this series, the issue of fair housing will be discussed.  Most homeowners don't realize that they are legally bound by the same fair housing laws that agents and brokers are bound by.  In part 4, homeowners will learn about what can happen when fair housing guidelines are not followed.