So often we see the deals fall apart.
So often we see the houses overpriced.
The buyer thinks "DEAL" when they see the FSBO sign. They're thinking right off that they are saving the commission.
However the seller also thinks they are not paying it. So when we often see FSBO overpriced by 5-10% and the buyer thinking they're saving 6-8% immediately we're 11%-20% off of a match.
You may be the exception to the rule, but we never know that.... I think it is a pretty rare that someone has bought and sold 1/2 dozen homes FSBO successfully.
If you feel confident & knowledgeable in handling your own real estate transaction; which you may be, if you are an attorney or mortgage broker, then you do not need a Realtor. Otherwise, we have invested our time to be educated in guiding you (buyer & seller) in the real estate transaction with professionalism, proficiency and in reasonable amount of time from documentation to closing. This allows you time to do other things like plan & schedule your move and spend more time with your family and their sports schedule. Let us handle your Real Estate Transaction because that is our "job."
As for me, I believe I will remove my listing for a while and maybe the sharks will leave the water.
Us Old Foggies have picked up a thing or two in our years, and hopefully learned from our mistakes.
Going back a few generations, we would see a society that didn't have much communication; pretty much limited to books and newspapers. Radio and TV opened new sources for people to expand their knowledge.
But as late as the '50's, people were self reliant; they had to be. This was pretty much limited to simple things and didn't include Legal, Medical, and Financial matters.
The Computer changed everything, and young people cannot fathom what life would be without a computer:
Now, if I want to sell my house, I simply Google "Disclosures" and I'm all set. Right?
Wrong: Realtors take seminars on Disclosures. There are volumes we have to read to understand Disclosures, including all the laws, both State and Local. In California, we have about 6-7 forms we must fill out to be included in the packet. And the consequences of not doing this, or doing it poorly, can be catastrophic; to the Seller, the Buyer, the Agents as well as their Brokers! As Realtors, we hear and read the horror stories every day, and we could bore you to death.
"Disclosures" has become a four letter word for us; we tighten up every time we hear the word. And not because we are required by law; but rather because we are trying to protect our Client's interests.
So, as a FSBO Seller, do you know and understand "Negligence", "Easements and Encroachments", "Deeds and Titles", "Breach of Contract", "Appraisals and Closing Costs", "Leins and Disclosures" and a hundred other things.
In answer to your question about "Black Listing"; When we're compiling a list of possible houses for a Buyer, we preview a lot of houses, and we will stop at a FSBO and ask the owner if we can show the house and will they cooperate on the commission. If the answer is NO, why should we try to help them for free? Would you?
We are trying to earn a living the same as you. Why should it be a blight on our reputation if we won't do something for free. Will a plumber fix my leak for free, just because I tell him I don't feel like paying him?
I really would like the know the percentage of FSBO's that end up in Arbitration or Lawsuits?
Here is the facts... You don't need a Realtor to be involved to sell your home. The fact is.. you can write a contract with a buyer on a napkin. Sellers and buyers may agree to whatever they want to.
Here is another fact: Most buyers who are pre-approved on their financing are working with a buyer's agent. These buyers do not want to have to pay their realtor out of their pockets in order to get a For Sale By Owner home, when the owner does not want to work with a Buyer's Agent. Is that sad? Sure it is. But, when they have to put down a down payment, pay closing costs, etc... adding their agent to the fee sheet is usually not on the menu when they know that any home listed in the MLS or a Builder will cover their agent for them.
Is it not worth 3% to you to have someone sell your home for you when they have a buyer?
I always find it amusing how some people do not at all value what a good Realtor brings to the table. "Ahh, they are not worth the commission." When indeed, they are worth every single penny. A good Realtor will find you your buyer in the first place, make sure they are qualifed, handle all the paperwork, coordinate all the inspections, work with the lender on anything they need to make the loan go, and in the end... take away all of your stress. There is a lot that Realtor does behind the scenes that the general public does not give us credit for...
I don't rank low in trust at all. I cant think of anyone I have worked for in the past 15 years that could honestly say that I did not do a great job. I can think of a few people that I couldn't make happy if I gave it away, but when you deal with the general public, and you do enough business, you already know that not everyone will like you as a person... but no one can say I did not do a great job, and no one will ever be able to say I was not 100% honest all of the time.
Here is another fact: Most For Sale By Owner sellers OVER PRICE their homes. I'm not saying that you have done that, as I have no idea what you have your home listed for, but if you look at FSBO sellers overall... they think their home is worth $10K more because they lived in it... We see it more often than you can imagine.
Fact of the matter is.. There are plenty of Realtors our there, me included, that would sell your home for you at no seller commission at all (you saved 3%), as long as we get to be your buyer's agent. Since your buyer agent doesn't cost you anything on the buy side... it becomes a win-win. You sold your home without having to pay a full Realtor Commission, you get an agent who will work hard for you, help you get a much better deal on your purchase than you could have gotten on your own, and you didn't have to pay a thing. Like my Daddy always said, "You can't go broke making a profit" Your home will sell a lot faster, and if you look at the statistics, you will probably actually NET MORE MONEY EVEN WITH THE COMMISSION to the buyer agent. The statistics don't lie.. Realtors sell homes faster and for a lot more money than For Sale By Owners do.
In reading what you are writing.. I get the feeling that you would like these Agents have their buyers consider your home in the mix.. But, If you are not willing to pay an agent who brings you a buyer, then it is not a fair or realistic expectation for any agent to bring their buyer to your home. This is how we pay our bills and feed our families. Would you go to your job and work 40+ hours and donate your paycheck back to your employer just to be a "good guy" I am thinking the answer to that is "probably not"
What you are not seeing is the fact that that agent had to spend hard earned dollars to market, find the buyer, qualify the buyer with their favorite lender, spend tons of time and money on gas showing them multiple homes. Running them neighborhood reports, send them all the homes that fit what they are looking for. Educating them on the process, and tons of other stuff that does not show up on the stat sheet. We have already put in tons of hours and money before they ever even started to look at homes.
So... ask yourself the honest question.. If they had no hope of getting paid for their work, how can you expect them to bring a buyer your way?
As professionals, we value our clients, we work with them constantly and have a very strong relationship with them. This is how we earn our living. Should our client want to buy your home that is not a problem. The Realtor representing the buyer does educate the buyer because we have to protect our client. The fact you don't want to work with an agent or pay a fee does have an impact. We bring value by bringing a qualified ready buyer to you. Do you think this is worth something? We think so. It does not make you "blacklisted" there is no such thing.
I stand ready to work with to help you understand the role Realtors play in all this. We are here to serve.
Glad you responded again and am also glad to hear that you liked most of the answers. I didn't read them all, but can understand a little if a buyer's agent told you they may counsel their buyer against FSBOs. This doesn't automatically mean they won't show your home. However, there are two issues at hand.
First, if you are not willing to pay that agents side of the commission, then the buyer will need to pay that. Most buyers do not want to do that.
The other issue is that even if you are offering a one sided commission, the other agent may end up doing the entire transaction for half the pay as most FSBo are not experienced in Real Estate transactions, laws, title companies, etc. There is a lot involved with a Real Estate transaction. Additionally, if that Realtor does bring you a buyer and is working to close the transaction, you may think that provides you with representation and if simply doesn't. The buyer's agent works solely for the buyer and their interest. They are also fairly trained in areas to get that buyer what they want, which may leave you without the most money. Anywaym you can check out my blog on this site Goin it Alone Selling your Schertz Texas Home. It will give you some insight into what I am talking about.
Other than that, good luck on selling and again, if you do want some help and representation feel free to give me a call and perhaps I can assist you.
Realtor(r), ABR(r), e-Pro
Smart Moves Realty