FSBO vs. Realtor

By Wayne Zelenak

There are a number of reasons why sellers decide to sell For Sale by Owner but find out the hard way that they do not have the expertise, resources, or the negotiation skills to properly market their homes.  They think that by selling a home by themselves they will save the commission.  The result is lost market time and lost money due to the pitfalls  they find themself in.

1. The Marketplace- the single largest advantage to listing with a Realtor is the marketplace. The National Association of Realtors have shown that over 85% of all serious buyers are working with a Realtor. By selling FSBO, you are missing out on the largest number of prospective buyers for your home.

2. Advertising- a professional Realtor will utilize the Multiple Listing Service, internet web sites, interactive web sites, direct mail, newpaper articles, professional networking, broker tours, open houses, and company signs to advertise your property 24/7 vs. a FSBO sign on your front yard. An experience Realtor will have extablished webistes designed to attract most of the prospective buyers where they can view your home and look at mortgage calculators, neighborhood information, school reports etc. The result, your home will sell faster and receive more than if you sell it yourself. 

3. Curiosity Seekers and Neighbors- with FSBOs, a large number of people knocking on the door are neighbors and curiosity seekers, and Sunday drivebys. They are not really looking for a home to purchase and are the waisting the sellers valuable time. There is also a security factor to consider, how do you know that the person knocking on your door is not casing it for another visit when you are not home? 

4. Negotiating Terms-when a buyer wants to make an offer, how does the FSBO determine the buyers financial history. How does the buyer become prequalified. What are the details of a FHA, FA, Conventional type mortgage.  It is proven that a third party is always best to negotiate the best terms for a client.  Most buyer make offers substantially lower than the asking price knowing that the FSBO may be inexperienced in negotating skills.

5. Interest Rates- Did you know that every time the mortgage interest rates rise, the buyer's buying power lowers.  This eventually affects the value of the property.  The longer a home is on the market, the lower the interest in the property which eventually affects the selling price.  Is it worth it to gamble with the most expensive asset in a persons life, their home? On my wesite, view "Can You Afford to Wait"

6. Time- FSBO's soon find out how much time is spent in trying to sell their home and eventually commission the services of a Realtor who can do the job more effectively, and get more money than they could.  Selling a home is a full time job and should be directed to an experienced professional who knows the market, advertises effectively, and can bring the best price with the best terms, with as little hassle to the owner. 

For a complementary market analysis, pre-listing checklist, and expert advise, Call Wayne today.