FSBO Facts

Price vs. Net – If we could put the same amount of money in your pocket as you could put in your pocket, would you use our services? Of course you would, here’s an example. Pretend you are the buyer, and that I am your buyer’s agent. You call me up to find a home to purchase. I will pull up all available listings from the MLS (Multiple Listing Service) in your chosen area. I will call the listing broker, set the appointment to show the home, and drive you in my car to the showing appointment. Then when we find the right home for you, I’ll negotiate the best price on your behalf, I’ll guide you through the home inspection process, I’ll work with your lender to get loan approval, I’ll attend the home appraisal, handle all the paperwork (contracts), and assist you in the closing process. By the way, all of this is free to you (the buyer). Now if you (the buyer) were to give all of that up, why would you do that? PRICE! You would reduce the price offered to the seller. You see as a buyer working with a Real Estate Broker, all of these services are not paid by the buyer, the fees are taken out of the commission on the listing side and a CO-OP takes place with the buyer’s agent. Let’s say you have your home listed at an x% listing whereby the listing broker takes x% of the sales price to market and sell your home. Now that x% is to be shared with the buyer’s agent, and that is typically x%. Not many buyers are willing to give up the expertise, assistance and knowledge of a licensed Real Estate Broker, especially when the services do not cost anything (since the fee is paid by the seller). Thus, to access all buyers and remain competitive, you will probably have to offer an x% CO-OP to a buyer’s agent who brings you a qualified buyer that purchases your home.

How much time do you have? Generally, while you can sell your home yourself, by using a Real Estate Broker, it is more likely your home will sell faster. All properties will sell when provided with enough time and the price is right. Let me explain a little further. Let’s say there are 15,000 Real Estate Agents in the metro area. Most of them, like myself are aggressive self-starters. Statistics show that each agent has approximately 5 buyers that they are currently working with on showing homes. That would be 75,000 prospective buyers that would not be viewing your home, (since they are already committed on working with their agent) because it is not listed in the MLS (Multiple Listing Service). Further, without the assistance of a Broker, you will waste time showing your home to either someone who may not be financially qualified or who is just a nosey individual wanting to see the inside of your home. So my concern is this; it’s not that you can’t sell your home, it’s when?