As the owner of a Real Estate company I do understand why some sellers think they don't need an agent/broker to sell their property. And why not pocket the extra 5% - 6% it usually costs? Before you go down the FSBO road there are some things you need to know about how the process of an owner trying to sell their property really works:
- Most buyers are uncomfortable dealing directly with the owner, which means you'll have to pay a fee to a buyer's agent anyway. And many buyer’s agents are reluctant to deal directly with the owner since they end up having to do a lot of extra work and not get paid for it. So starting right out of the gate you have significantly reduced your buyer pool. That doesn't help you sell your property.
- Many buyers are also uncomfortable asking the owner the tough questions or relying on their answers, which means you have further reduced your buyer pool by excluding those who want representation.
- We have worked with many owners who started out trying to sell themselves first and almost everyone one of them started out way too high on pricing thinking they were being smart by allowing room for negotiating. Instead they contaminated the property in the marketplace and either didn't sell or sold for much less than they would have if properly priced out of the gate by chasing the market down through multiple price reductions.
- A majority of buyers who are willing to make an offer without an agent are likely going to reduce their offer by the commission amount anyway, so in the end you're doing all the work on the sell side for the same or less money.
- There are two major components of selling real estate - marketing and price. A huge part of the marketing program is photos, and most photos by FSBO sellers are just not very good. It’s understandable; it’s not your business. But those photos either capture a buyer’s attention and make them look further or don’t and it falls off their radar. By missing out on many buyers you might have attracted through a top shelf professional presentation, you are further reducing your buyer pool even if your price is right.
Admittedly there are a lot of people in the real estate business who don't bring much to the table in terms of marketing, negotiating, and offer strategy, but the ones who do will get you more money for you home than you would otherwise, relieve you of the work of doing it yourself, have a comprehensive marketing plan that you could never come up without being a pro, reach WAY more potential buyers than you ever could - some of the fsbo sites claim to put your property on the "MLS" but it's usually some other website with the letters MLS in it that no one who is serious about buying actually uses - and make sure that you have covered yourself in terms of liability by making sure you have disclosed everything about the property that you need to. This is why most properties that start out being marketed by the owners end up being listed by an agent/broker. Save yourself the aggravation and talk with a few reputable brokers before going the FSBO route. Most likely you’ll be very glad you did.
We have had repeated success in selling properties where other agents and property owners have failed. If you would like to see a proposal and/or a no strings consultation for your property, contact info is below:
Lance R King/Founder Managing Broker
King Realty Group
King Realty Group - Better Service. Better Price. Better Results
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