Michael M, Home Seller in Staten Island, NY

Do most agents avoid working with FSBO sellers?

Asked by Michael M, Staten Island, NY Mon Sep 30, 2013

Do agents work deals with FSBO sellers? or Do most agents view FSBO as either one or the other, an opportunity to pick up a listing, or not worth their effort for the commission?

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Jonathan Dalton’s answer
Generally not ... the larger issue is marketing and exposure. Personally, I use our local MLS to search for homes for my clients because the data's far more reliable than on Trulia or Zillow. And there generally is no need to wade through the faulty listings data to find a home when there are other choices far more readily available and visible.

Agents can't show what they don't know exists and the vast majority of FSBOs are virtually invisible.
0 votes Thank Flag Link Sat Oct 5, 2013
FSBO home owners have declared they know more about real estate than the professionals who help buyers and sellers a dozen times a year.
Such home owners will require constant, vigilent, persistant ovoersight and supervision. They will second guess every action and will not be transparent in the transaction. The agent involved must handle, with great liability, both sides of the equation....and do all the babysitting.
Of course this means the DIY home owner will need to pay additional compensation. Compensation in excess of what would have been required had the home been listed on the MLS.
In their state of denial, the DIY home owner, the FSBOer, won't co-operate. The willing seller therefore evaporates. Of course I'll work with FSBO sellers, but not on their terms.
2 votes Thank Flag Link Tue Oct 1, 2013
Hi Michael

From experience I would say most agents do avoid them because most FSBO"s don't want to deal with agents for whatever reason usually they don't want to pay commission but stats show a high percentage of fsbo's eventually list with a realtor.

Thanks Felix
1 vote Thank Flag Link Sat Oct 5, 2013
That right Felix.
Flag Mon Oct 7, 2013
Not sure agents avoid them, especiallly if the property meets a potential buyer's criteria; however also keep in mind that when dealing with FSBO's agent have a greater liability on their shoulder, therefore FSBO's may not be a priority if other properties meet buyer's needs....
1 vote Thank Flag Link Tue Oct 1, 2013
Let's put it this way. ALL agents work with homeowners on MLS, but NOT ALL agents work with FSBO's. Therefore, it's to your advantage to list your home with a real estate professional. Not only because of the marketing but we take full control & take the burden off of you AND work for free until we sell it! How could you go wrong?
1 vote Thank Flag Link Tue Oct 1, 2013
Yes, but It doesn’t make sense to ignore this great market segment, though most agents do. Owners of FSBOs are qualified, motivated sellers. Clearly, they want to sell. Typically, FSBO sellers have lower median incomes and are more often singles, especially single males. FSBO owners have a reputation among agents for being tight with a buck: They're generally trying to sell a home themselves to avoid paying commission fees to a real-estate broker. Further, they may have an emotional and personal attachment to their property. They can take it personally when buyers or their agents want to negotiate. Despite their reputation, FSBO sellers may become more flexible the longer a house sits on the market. The vast majority of FSBOs fail to sell on their own. Statistics show more than 70% of the owners, if they want to sell, will eventually enlist the services of a real estate agent.
0 votes Thank Flag Link Tue Oct 1, 2013
It's situational, right? If an agent has a buyer under contract, they'll show it; if they don't have a buyer, they're probably not going to pore through their Roladex trying to scare up a buyer for it.
0 votes Thank Flag Link Mon Sep 30, 2013
I don't know about most agents but I have no problem dealing with FSBOs. Contact me so I can take a look at your listing.
0 votes Thank Flag Link Mon Sep 30, 2013
I have shown a few buyers FSBO's . One I had a deal on but the engineer killed it. The seller did sogn a listing agreement and was put in mls for 30 days and we put in the contract that is was for this particular buyer just so no one got screwed.
0 votes Thank Flag Link Mon Sep 30, 2013
It has nothing to do with the commission. Once they bring the Buyers over and they see the sign "For sale by owner", they will loose the Buyer in case they like the house. It is really nothing Agents can do to avoid it, unless they protected d by some kind of a Commission agreement.
Honestly, I thinks FSBO's probably will loose more by trying to sell the house on their own.
It's an official statistic that Brokers bring the sellers much higher prices, that Sellers themselves.
And all this without any hustle, marketing and extra spending's
We are not trying to earn the money for free, actually we do a lot of work for it, or at list some of us.
My advise, if you decide to handle it over to a professional, be very choosy.
Here are some basics rules;
1. Agent sells the house, not the Agency
2. Choose the Agent that can spend enough money for the Marketing (Brokers/Owners are the best choice by far)
3.Be one of a few listings, than one of a very many.
4.Make sure your Agent is trust worthy when you see him
5. If Agent agree with you on everything, drop him. They just trying to get a listing at any price.Time is a very important commodity, don't loose it
0 votes Thank Flag Link Mon Sep 30, 2013
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