I have to concur with most of the postings - and put a little twist on the answers.
Although, I would not keep a buyer from viewing a listing - I do have buyers who do not want to deal with the FSBO - Limited or otherwise.
Buyers today want to be protected - and the perception is that there isn't a safety net when dealing with a FSBO. This isn't what you are told by the commercials or the providers of these services - mostly you are advised of the $$ you will be saving.
However, if the statistics are true: 80% of the FSBO's will return to the traditional form of selling with an agent representative, AND if time is money - What are you saving?
So, to answer your question - I will be more than willing to show your home, but my current buyers may not want to.
Agents are human, and all else being equal, most prefer to work with professionals. Not only for their sake, but for their clients as well. This is a key point I make on listing presentations. I have worked very hard to build a reputation in the industry as one with whom other agents want to do business.
I won't go so far as to say that agents will steer clients away from your house, but your home would have to be heads and tails better than the competition to ensure that there is no lingering stigma. I, personally, would show it if it fit my client's needs, but with plenty of apprehension. Good luck in whatever you choose.
Thanks for taking the time to return to the post with your comments. There were a few trains of thought that you referenced that I did not pick up strongly in the thread. You indicated posters implied that you couldnâ€™t do this because you werenâ€™t a Realtor. I donâ€™t hear that loudly in the thread. I do hear that you will have some disadvantages in the marketplace as compared to an experienced Realtor. We often predict future success based upon past results, not just in real estate, but across the board. If you were going to hire someone to represent you to sell your home, would you disregard experience as irrelevant? As compared to the experienced Realtor, you will have some disadvantages. That does not mean that you canâ€™t do this. I have seen FSBO transactions close where I knew the seller undersold, and I have seen FSBO transactions close where I thought the seller did well.
If your home is priced right and shows well, yes, you will get showings. The Realtors who show it will approach with some uncertainty, not knowing what to expect. There is no higher authority guiding a FSBO, or to supervise a FSBO, as compared to a transaction w/ a Realtor. With a Realtor, there is a Broker, an MLS board, the collective associations and a state regulatory body that govern the actions of the Realtor and provide a support system.
You can certainly try your approach w/ a LSB and if, indeed, you find you are not getting the expected results, switch to a full service broker. While with a LSB, I would suggest that you do as much outreach to the buyer brokers as possible. Host a broker open house, extend extra effort to get as many buyer brokers there and interact with them. The more exposure they have, the greater oppty you have to build rapport and bridge the gap of uncertainty.
You wonâ€™t get the exact same market exposure from LSB as you would FSB. You will make some compromises in exposure as a result and that will cost you some showings. Not because anyone is steering away from you, but because other properties that benefit from the marketing and networking that come with FSB and escalate your property to a top of mind position.
May I ask what occupation you have?
Are you paid based on performance? Or a flat salary, not matter what you produce?
After responding to your first question, let me ask you:
If you were compensated on the work that you closed (that means, if I show a home to you, and you buy it, I get paid , and my family eats). what would your greatest incentive be?
Let's cut to the chase...if you want to net the most when you sell, and get the best deal when you buy, with whom would you work? Someone who's best barganing chip is "I am the cheapest?". I don't think so.
If all it took was what was posted in your questionk, EVERYONE would be in real estate sales. Why is that not the case? BECAUSE it takes more than that. This is not a complex business. But it is not easy.
I can tell you, I feed my family from my business. EVERYTHING matters. The ONE factor that is Limited is TIME. I am not going to waste my time with YOU, with CLIENTS, with LOOKERS, wihout GOOD REASON.
However, I will invest my time for my CLIENTS, BUYERS, and SELLERS that NEED my help. Because WE ARE A TEAM.
Part of that investment in time is simply this....I would prefer to open escrow with a professional who as the same motivation as me. If I know that the property is represented by a Flaky agent (regardless of commission), that is a factor.
Also, if I know that the property is represented by an agent who is a weak negotiator....I will work REALLY HARD to see what deal I can cut for my buyer!
Limited services may limit your exposure. In Bucks County - the most important things for you to sell your home is to price it correctly and make sure it is marketed correctly.
Make sure it is on the MLS - on Realtor.com and other websites. This is where all the buyers are looking. If there is a realtor that won't show your home because who your agent is, there are 10 other agents that will show the house.
I would never withhold showing my clients a property just because it is represented by a limited service broker.
My goal is find the best house that fits my client's criteria. As long as your house fits the general criteria, it will be one of the houses that are shown by me along with the others that fit the criteria. In some way, dealing with limited service broker can be advantageous to my clients because from a few past experiences, I have noticed that limited service or discount brokers (who offered rebates to their clients), the negotiation from the other side was much easier (maybe they just want to close the deal with least trouble). I wasnâ€™t complaining for my clientâ€™s sake.
The risk is really more on your side because by definition, a limited service broker provides limited service. As he/she represents you and not my clients, you will be the one who decides just how much of the service you are willing to take on yourself in exchange of the lower commission you are paying (thatâ€™s pure my assumption, but probably a good assumption, because why would you use a limited service broker unless you think you are getting something in return?) To protect yourself, make sure your house is getting good exposure, that you have enough knowledge to handle or understand the contract and navigate the inspection period, the negotiation process and the escrow period; as well as assume the liability if you are not getting good counsel.
As far as the buyer agent is concerted, we wonâ€™t pass up a good property for our clients because thatâ€™s our fiduciary duty to them.
One thing you can do, and it may seem too obvious or too simple is to put in your advertising and possibly in your yard on your sign, Realtors Welcome! It sets the stage to buyers working with a realtors and to realtors that you are indeed friendly to all shoppers. There are a lot of buyers that are loyal to their realtor, that shy away from FSBO's because they don't want to cut their realtor out! In my area I work with FSBO's all the time. Since you will have a LSB it should say the same thing.....but you might want to put a little extra sugar on the deal!
I can sense som frustration on your
I concur with Deborah. As in your prior replies to this post, you feel you have done your researches, you know the market, you will price it right, you have the knowledge, the legal advise behind you, you can be objective, you are detail oriented, and you will do thorough follow thru every step of the way to the end; then you should give it a good try.
There are successful FSBOs and if you price it right, prepare your house for best showing condition, do ample marketing, make it easy for Realtors to show and communicate that; then go for it - from what I see, you will never feel good about this if you don't try it yourself. Same as a lot of other FSBOs.
I think the other thing I worry about is that even though you say Realtors are your friends, but you also don't quite trust Realtors. As a realtor who have tried to show houses (because they fit my clients criteria) that are FSBO, I personally have seen or received rejections from the beginning (a screaming 'Realtors need not Apply, nor show your clients my property' type of thing), so we are also leery of FSBOs - are they going to expect to nickle and dime everything?.
So, on top of aggressively marketing your property, show the professionalism while doing so, be sure to show equal treatments of all Realtors on your end and be upfront; it will definitely help your cause.
Make sure the listing agreement you signed with the limited service broker is in such way that you can cancel anytime if you are not satisfied with the results. In this market, you don't want to waste any precious time - fall is here already.
Best of luck. Come back and let us know what happened.
I see alot of folks doing FSBO / LSB who... well, they're honestly clueless and obviously would be a nightmare to work with. It seems one of my challenges walking into this process might be to convince realtors that I'm different .. that I will work professionally and effectively with them to sell the home, that I will do my part, that the deal won't fall through because I'm clueless.
So ... the real question is - as I start this process, what can I do to ease this preconception? How do I get realtors onboard with me? If you're squirrelly about FSBOs, what things would change your mind?
Or does it really just come down to the right price, the right features, and shows well regardless of who listed it?
If there is a lot of inventory, I won't be able to show everything. A house that is $150k overpriced is not a likely candidate unless all other options have been seen and rejected. That's common sense.
If you do go by the limited service route....please, please, PLEASE look at the most recent "solds" and price your property accordingly. If you don't, you will spend a lot of money on the listing and promotion only to have to list it later with an agent - creating more expense, not less and defeating your own purpose.
I, as most buyer agents. would alert my buyer to the flat fee lisitng fee paid by the seller and that would be factored in the offer. When presenting the offer, I discuss that was a factor in arriving at the offer price. As a buyer agent, it is my duty to provide my clients with all material facts. Whether I mention it in presentation of an offer is not a requirement, and many buyer agents may not mention it to you, the seller, but that does not mean it was not covered w/ the buyer.
I donâ€™t believe most agents steer away from a listings submitted to MLS by a limited service broker, but I still believe that your showings end up being less. While agents do not steer away, neither does your property have the oppty to catch a buzz the way a property represented by a full service agent.
Upon gathering a list of potential properties to show a buyer, the properties that are the best matches go in the first pile. If your property matches my buyers needs perfectly, I will go through back breaking efforts to show it. Assume you didnâ€™t make the perfect match pile. You and a large inventory of other properties sit in a pile that are now grouped together as the maybes. The more tallys you have in your favor, the higher your property moves up within the list of the maybes. (Higher than average BAC - buyer agent commission - has minimal effect. I saw your other question, and will try to post there about BAC.)
The challenges with dealing directly with an owner are many. I read your posts, and you seem very collected and reasonable. When buyer agents read your listing, they wonâ€™t know that. Buyer agents will know that there is high probability the seller will not be objective, and that the seller may ask the buyer agent for much help and guidance. The buyer agentâ€™s biggest concern is an accidental dual agency. This creates a liability issues as well as drains time. While you personally may be the exception, the buyer agent who has shown several limited service listings has learned to be guarded and anticipate these challenges.
Agents network and share comments about properties as a result of Broker-to-Broker marketing and outreach. You will not gain the same benefit from limited service.
Some showings to buyers are buyer driven, while others are agent driven. Buyers spend much time looking at properties on the internet, either through auto updates set up by their agents of new listings, or on sites such as Trulia, Realtor.com, etc. When a buyer asks his/her agent about a property they have seen online, the agent may rave about the property, may explain what about the property does not meet the criteria, or may not know enough about the property to comment. You quoted a statistic of 85% of sales coming from the MLS/Realtor. Although the Realtor may bring the buyer, buyers are looking online on their own. In order to find the best buyer and secure the best contract for your property, you need broad exposure to both the agent community and directly to the buyers. Buyers go a lot of different places than just Realtor.com.
I certainly do think you come across as very level headed in your posts. I will have to strongly disagree with you about your comment that most experienced Realtors would not have a problem being objective in their own negotiations. Real estate is emotional. At our company, as is common, agents may not represent themselves in a transaction. This policy is common for a reason! Our insurance places certain restrictions on us for agent/owner representation. There is a reason for that, too! As a Broker, I have represented several agents in our office when they have had personal transactions. I can personally attest to the fact that they frequently become emotionally charged and I have to work hard to bring their focus on the facts they would immediately consider if it were someone elseâ€™s property besides theirs. So, yes, I will disagree with you on that point, and speak from experience.
If your property is a great match for the prospective buyer, priced aggressively, and easy to show, you will get the attention of the buyer agent working with that buyer. You have to be better than the competition in all facets, get more buzz, be perceived as easy to work with, etc. The great property with full service and a great agent will have an edge.
Upon receiving an offer, you will be relying upon the buyer agent for info versus your own agent. This is where the accidental dual agent role becomes problematic for the Realtor, and for everyone. If the agent helps you, are they failing their responsibility to their buyer, whom they are supposed to be representing as a buyer agent? It can get a little tricky sometimes if a seller starts wanting to rely on the buyer agent. As a buyer agent in this situation, I remind myself that I work for the buyer. I will be fair and honest with the seller, but if the seller does not have representation, that was their choice.
There is always the possibility that you could have a great buyer at a great price and a smooth contract. Itâ€™s also possible that you will net less than if you had taken the full service approach. Evaluate your risks and decide what is best for you. Good luck.
I will comment on your question about BAC of 3.5% later.
I think i am going to write a book on this one, ther eare a lot of funnies. This example will give you the midset of the limited or discount brokerage ans seller.
I called a FSBO client the other day, when checking the listing service to evaluate the price I noticed they were listed with a large discount broker. I asked the home owner why if she was listed was their no realtor sign. She said there was, down her wooded drive way tucked away in the trees, she said her agreement was if she sold it herself she owed the broker no fee!! So She hid the sign??Her sign was not head on to the road offering both sides so drive by traffic could easily miss it and her Realtors sign forget it.
I explained that it costs nothing to put her house in the system she had listed with and by hiding the sign she was damaging her chances of calls from buer or Realtors. It also showed me the Realtor didn't care because they had not noticed their sign was not visable.
The buyer ifn the did come and subnit an offer, will expect a deal because if FSBO their is no commission. So guess what they deduct the calculated commission from the asking price before asking.
Limited is limited for a reason and with sellers then fighting the system can expect a long listing. I like to tell my clients that when we list we want to speed date, I would like them sold l before we get serious and stay away from listing so long we start sharing birhdays and anniverseries.
This market has so much inventory right now and competition you need full representation and exposure to get showings.
Hey, I think most realtors would show it. I don't know of any that stray away. If the house fits the criteria for our buyer we are representing a buyer. We have a fudiciary responsibility to help that buyer find the right house. It does not matter what the listing specifics are. Good Realtors will remain in business and be profitable. Even if these other avenues present themselves. Good luck to you. You sound very determined and dedicated.
See post below - took me a while to find - you will see my position on the objectivity if it was me and what others said.
I think it's a good point, that many people find it difficult to be objective and keep emotions out of the process, even realtors are human! Let's be careful not to generalize though - I think most experienced realtors would not have this problem, and many, many people have the skills to negotiate effectively even when they're selling their own home!
I just finisehd talked to an experienced Reatlor whose own listinge of his house expired. He told me that he had a deal after a couple of months being on the market but he was not able to be objective enough and lost the deal. He said that he learned his lessons and when he put his house on the market agian, he'd be really objective this time and treat the house as somebody else's house.
Well, his house came back on the market, and he is now represented by another realtor. I wonder why he changed his mind.
As a matter of fact,
You sound very knowledgeable but there will be a lot of things that must be done that may not be familiar to you. Agents know that they will wind up having to do the work involved for both sides of the transaction when they are dealing with this type of listing. Depending on state laws some agents may be leery of working with this type of agency relationship.
The current market is a very difficult one and you may find that you would be better off if you chose to use a full service agent to represent you. In the long run it might actually be less expensive then trying to do a fee for service listing. The good thing is that you can always give it a try and see what happens... most of these companies will release you from the listing as long as you pay their fee upfront if you don't like their service.
Sounds like you did your research, checked everything out, have plans in place and are very confident in what you can do and will do. Then go with what you believe and try it out. I am sure you will be successful; and if ever in doubt, come back and say Hi; I know there will be people helping you out here! .
Certainly a buyers market right now! We are very well researched and realtistic about where the home will sell. Home would be marketed on the Internet, MLS, Realtor.com through the service. Of course, we would manage additional marketing campaigns. As I understand it, upwards of 85% of sales originate from the MLS/Realtor, other marketing targets the remaining 15%. We have a real estate lawyer (very reasonable rates) and negotiation is old hat - I am objective and quite honestly I'm on the same team as the buyers broker - I want to sell the home and create a great situation for both sides. As for details, I'm meticulous so I'll make sure the deal gets done.
As for your question, a buyer's agent is going to sell their client a property that meets their needs and wants, irrespective of compensation. What's more important is determining whether the parties can rely on one another to close the transaction rationally and efficiently. Good luck!