For Sale by Owner (FSBO) is a risky proposition for the vast majority of homeowners. Sure, marketing and home repair are two items a seller could certainly be qualified to take on themselves. Here's a little known fact if you are considering selling your home yourself: In Washington State, real estate agents save the public hundreds of thousands, if not millions, of dollars each year over attorneys fees alone.
Real estate agents are specially trained to help limit and alleviate many risks involved with the purchase and sales process. These risks can and often do lead to costly and complicated law suits and legal battles if not properly averted.
Real estate agents are also covered by errors and ommissions insurance in the event something does go wrong. Let's face it, we don't live in a perfect world. If a buyer or seller had to go out of pocket for errors and ommissions, they could easily meet with financial ruin. In this case the real estate agent offers invaluable security.
Real estate agents are specially trained to work with multiple listings service purchase and sale contracts, which are currently being standardized statewide in Washington. We agents spend countless hours on legal updates and best practices so we can confidently guide buyers and sellers through the purchase and sales process, error free.
Regardless of a home's FSBO status, if it's listed on the MLS, more often than not a seller will be dealing with a skilled, savvy and seasoned buyer's/selling agent, which may limit the unrepresented seller in the negotiations process. This could cost them way more than they save by not having a conventional listing agent in the first place.
Before you consider selling your home by owner, do carefully consider the value a qualified agent can provide you. There's a reason why more than 80% of FSBOs eventually convert to conventional listings. Think again before you devalue the intrinsic value of the single real estate agent. He/she is the fool who represents themselves ...
Your success is my business,
Brad
Residential Marketing & Investment Specialist Seattle & Tacoma Area Real Estate
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My sister had her home listed as a FSBO a few years ago, thought she knew the going rate for properties like hers, but when she and her husband found the perfect move-up property at an open house, the rookie agent convinced them to list with him. Not only did he discover they had the property priced at least $35,000 below what they probably could get, but they hadn't had any showings besides! Within two weeks they had a nearly full price offer that easily covered the agent commission and put more money in their pockets too. The power of the MLS did the work for them and that rookie agent sold two properties in the process.
Yep don't argue with the power of the MLS. You may be only hurting yourself.
A well know fact that most FSBO's hire a Realtor within the first 30 days after trying it themselves.
FSBO's get knocks on door at different hours of the day and have to unexpectedly show their home to a potential buyer whom may not even be pre-qualified.
Do yourself a favor hire a Realtor the time,money and effort they put into selling your home is more than worth the 6 % they ask as a commission.
Brad, great post. they would make our jobs a lot easier if they listed with us to begin with.
FSBO feel that they are saving themselves some money when really they are not. Just because you own and know more about your home doesn't mean you know how to sell it. Selling your house by yourself and Selling your house with the assistance of a very competent real estate agent are two different things. Can't over look the power of the MLS. If only I can get my point across to the FSBO's who I e-mail every week. Great post.
Brad, You are of course right but getting sellers to listen to a professional when they think they know it all is diffrent. usually a negative experience is the best teacher. Too bad more don't learn from other people's mistakes. Good post. Thanks
Judy T
Excellent points, Brad---Selling your home yourself certainly seems like a great way to save money in theory, but for the very reasons you've pointed out...sellers usually find themselves spending much more than they save--in many ways.
I'm delighted by all the supportive commentary, especially in such a short time frame since my post about an hour ago.
I was browsing through one of my online networking sites, and noticed a couple people who solicit serivces aimed at marketing packages for FSBO's. Instead they should spend their energy partnering with and helping agents desing good marketing packages instead of working against the grain. Either way running across these :service providers" (one gal advertising these services has a BA in ceramics), is what inspired me to write on this topic.
It's true, more than 80% of FSBO's eventually list with an agent, making them great targets for agents who use a prospecting business model vs. a referral-based business model.
Thank you all for your comments!
-Brad