Gee Badurr
You are one angry rabbit.
Clowns and Chumps. Bozos, Stockbrokers, vipers, and attorneys. Trapping the unwary.
Either you spent the day drinking or you work for FISHOE.com.
Sleep it off, you can delete your post in the morning.

FSBOs can be quite a challenge, especially if you don’t have any experience in selling one. Some sellers choose this option to save on agent’s fees. However, most of the time from a buyer’s point of view, they think that the savings from not using a Realtor should be passed on to them. Thus, when they make an offer they would usually discount the cost of the agent’s fees.

Moreover, FSBO listings usually have less exposure than the properties listed by Realtors. You may have access to the same marketing materials that agents use, but you don’t have the benefit of their network. Usually, when you hire the services of a Realtor; while you may deal only with one Realtor, chances are you have a team of Realtors marketing your property and cooperating with other buyer agents. This is especially true if you hire the services of big real estate agencies who usually have a network of agencies working together.

Most buyers are represented by Buying Agents. Thus, most of the time sellers still have to pay a commission. In fact, instead of a standard 3% commission, some sellers are even giving a 4% commission just to encourage buying agents to bring in clients. In the end, the total savings is not substantial. Some would argue that if it is a million dollar property, the savings will be huge.

However, if I am the seller of a million dollar property, the more I will utilize the services of a Realtor. I've listed at least 10 reasons in my blog; http://globalrealestatehighlights.com/2007/10/01/for-sale-by… why I would use a Realtor.

Hard facts - not really. If the home is priced right no matter who lists it, it will sell.

Baldurr spammed with: (clipped for brevity)
You don't fully realize how many desperate, and for all practical purposes
unemployed RE agents there are until you sign up on some RE message
boards and start reading one RE agent "snow job" after another.

REALLY? HOW MANY DO ARE YOU SPAMMING?

Just to Refute the most common lies RE agents tell;

1) A seller needs an RE agent to get to the real buyers !!
Statistics on this subject clearly show that a majority of buyers
find the home they eventually buy and then must endure the
boorish behavior of RE agents in order to get in to see the
home that they found without any help of a parasitic RE agent.
With the advent of FSBO, buyers can negotiate directly with a
seller without being extorted for an outrageous commission
from what might best be referred to as excess baggage.

AH< YES, ALWAY PLEASANT TO NEGOTIATE DIRECTLY WITH SOMEONE WHO IS GOING TO THINK YOU"RE NICKLE AND DIMING THEM.

2) Buyer Pays Nothing The Seller Pays all the RE Commissions !!

This may be one of the most outrageous lies in the history of
modern commerce. If buyers were not just brainless sheep,
they would realize that the commissions are being paid by
the party bringing the cash to the closing, that's right buyers,

UM. . . THAT IS EXACTLY MY POSITION. THE BUYER BRINGS A BAG OF MONEY, AND THE COMMISSION COMES OUT OF THAT BAG. HOWEVER, THE BAG FIRST GOES TO THE SELLER, THEREFORE, IT IS COMING OUT OF THE SELLER'S PROCEEDS.
One phrase you heard from every
single one of them was that they would be committed to
getting you the most for your property. Well just how can
they possibly do that when they are supposed to be getting
the best possible deal for the buyer??

OBVIOUSLY MR BALDURR KNOWS ZIP ABOUT AGENCY. AGENCY 101: BUYER'S AGENTS WORK FOR THE BUYER'S BEST INTEREST. SELLER'S AGENTS WORK FOR THE SELLER'S BEST INTEREST. SHEESH.


One of their most fail safe methods is to maneuver a
seller into going out and buying a new home, on a contingency
of course.
I WON'T EVEN TAKE A BUYER OUT IF THEY HAVE A HOME TO SELL UNLESS THEY DON'T HAVE TO SELL IT IN ORDER TO MAKE THE PURCHASE. i HAVE BETTER THINGS TO DO THAN DRIVE AROUND PEOPLE WHO ARE NOT READY WILLING AND ABLE TO BUY. I HAVE TO PAY MY OWN MORTGAGE AND FEED MY FAMILY, I CAN'T WAIT A YEAR TO BE PAID.

By the way, Mr. Baldurr, you lose! Thanks for playing! Please (don't) try again! :)

Baldurr is trying to save the FSBOs of the world. He copies and pastes his stock answer on all FSBO v. Realtor questions.

In fact, I'm wondering if Baldurr doesn't pose these questions himself so he can have multiple opportunities to show off his mad writing skillz.

Calm down, Baldurr, or you'll end up like this: http://blogs.cisco.com/gov/angry%20man.jpg

You don't fully realize how many desperate, and for all practical purposes
unemployed RE agents there are until you sign up on some RE message
boards and start reading one RE agent "snow job" after another.

Just to Refute the most common lies RE agents tell;

1) A seller needs an RE agent to get to the real buyers !!
Statistics on this subject clearly show that a majority of buyers
find the home they eventually buy and then must endure the
boorish behavior of RE agents in order to get in to see the
home that they found without any help of a parasitic RE agent.
With the advent of FSBO, buyers can negotiate directly with a
seller without being extorted for an outrageous commission
from what might best be referred to as excess baggage.

2) Buyer Pays Nothing The Seller Pays all the RE Commissions !!

This may be one of the most outrageous lies in the history of
modern commerce. If buyers were not just brainless sheep,
they would realize that the commissions are being paid by
the party bringing the cash to the closing, that's right buyers,
you're the chumps paying for the bozos otherwise known as
RE agents. For whoever might doubt this perspective, think
back to what the RE agent told you when you were a seller
and one RE agent after another was trying to con you into
giving them your listing. One phrase you heard from every
single one of them was that they would be committed to
getting you the most for your property. Well just how can
they possibly do that when they are supposed to be getting
the best possible deal for the buyer??

The industry response to this question is to point out the
need for both buyer and seller to each be represented by
different agents, two clowns, a buyers agent and a sellers
agent. The clowns then turn into a tag team, with the buyers
agent clown advising their chump to bid higher if not paying
the full offer price, while the sellers agent clown continually
badgers their chump, the seller, to continually reduce the price.
Most people are so unfamiliar with the RE transaction that they
don't realize that their agent did not really represent their best
interests until it was too late, they have signed the papers and
are trapped.

Trapping the unwary is a skill RE agents have perfected to a
fine art. One of their most fail safe methods is to maneuver a
seller into going out and buying a new home, on a contingency
of course. Now that the seller has found the home to buy that
they were looking for and hoping to find, the agent has the seller
in the palm of their hand. They know exactly how much equity a
seller has and how much the seller can really lower their price,
even if they really had no intention of selling out a such a low
price. Since the seller has committed to their dream home, at this
point they really have no leverage at all and must accept the lowball
bids the agent brings to them. Since the sellers agent will never
have to deal with these people again, they really don't give a damm
if the seller is unhappy with them. They've trapped their victims, and
now it is their right to suck some money out of both the buyer & seller.

It is time for people to realize that RE agents are no more trustworthy
than stockbrokers, and they certainly can never truly represent the
best interests of either buyer or seller. It is well past time to realize that
RE agents are vipers who believe it is their right to suck money out of
every RE transaction in the country. I look forward to the day when half
of all RE transactions will be handled by FSBO companies, with buyer
and seller each being represented by their own attorney who is being
paid a flat fee and has no vested interest in the transaction other than
looking after their client's interests.

Find the thread about Duffy Realty...it's a good one with a dozen issues that would make good standalone threads.

most fisbos do give up too soon, and they rarely have a "Plan".

ignore any metrics that are offered they will be self serving...mahoney is right. patrick mahoney has to be the irishest name in the world. cheers! from michael patrick ford

i've gotten listing from fisbos who just wanted the agents in town to stop pestering them.

Dan
You've received some very good posts responding to your question.
The one aspect I think is the most critical is this:
According to the California Association of Realtors 2006 Buyer Survey, almost 90% of the time the buyer first sees the home they purchase via a Realtor. Most Realtors and their buyers have formal representation agreements that prevent buyers from buying from someone else. The Buyer Representation Agreement is a formal covenant between the buyer and the Realtor, outlining specific points that both parties agree to carry out.

What is important for a seller to know is that buy selling on their own, they are in fact excluding 90% of the buyers. This is not to say that the seller will not be able to find a buyer, however if the seller's goal is to maximize their net profit by "saving the commission", you can see from the statistics that the idea, although at first glance makes sense, does not work.

My last point is this: Usually when a seller sells their home, they are purchasing another one. Usually they use a Realtor as their "buyer's agent" because "they work for free". So if using a Realtor when they buy a home is a good idea (that realtor.org link has some great stats on this), why is selling your home without formal representation a good idea?

Great questions. Hope this is helpful.

Dan Dan your the man, If any one can sell it, Dan sure can.

Yep
You have come to the right place. We have......

FSBO`s
Full Service Realtors
Discount Real estate agents
Drive thru
rent a Agent
You name it we got it.

I have learned one thing being here at Trulia, There are no such thing as hard facts.
Everyones number support their own agenda.

Do FSBO`s give up? I think they generally go 2 to 8 weeks, and either sell or surrender.

Depending on what region you are in FSBO`s sell for 20% less to 10% more, and depending on who you talk to.

Do I think you should use a Realtor to sell your home, Of course. I`m a full service Realtor.

I think you need to ask yourself this question
What is right for Dan?
Is Dan a do it yourself guy?
Is Dan comfortable with the contract process?
Does Dan Need to get His Home sold now?
Does Dan need someone to answer every one of his question, correctly, in a timely manner?

Again I`m a full Service Realtor. A full service Realtor will.
Price your home correctly.
Market your home correctly.
Negotiate the best terms for you.
Handle all the Contracts correctly.
Monitor title & the buyers mortgage.
Be present for inspections
More negotiations
Do everything to ensure that your home sells.
Full Service Realtors do not get paid unless your deal closes.

I am in AZ. You are in Florida. My market is tough, your market is really tough.

Depending on how much time you have, and how much you are willing to do. Try being a FSBO. Go for it!
I would suggest that you hire a Professional.
Good Luck
Keep me posted.

Generally if a buyer approaches a FSBO, they have already discounted the real estate commission of the price they will offer. Both parties should consult real estate attorneys, and at the end of the transaction, how much has been saved? And neither the buyer or seller has had the benefit of a professional guiding them through the process. The Florida contract is a minimum of 8 pages, and addendums flourish, with inspections, and time frames that must be adhered to--nothing for the faint of heart to undertake. It is absolutely, unequivocally true that most ultimately are unsuccessful as For Sale By Owners, and will eventually list with a Realtor--after they have lost precious time and momentum in selling their house.

Yes, this is absolutely true. Most FSBOs generally ask far too much for their real estate properties and as a result suffer long periods of time with their homes on the market without successfully selling. Best, Mark Palace

Good answers from all, I'd like to add a few more that didn't get mentioned.
If you decide to go FSBO, get an attorney. Most often you won't know the laws and this is where the buyer coming back and suing you later will lose you money.

Another big regard I have is safety issues. I don't know if you are single, married, have children, but inviting strangers into your house is a pretty dangerous thing to do in todays world. Even agents get hurt and killed, and we are trained to avoid these issues. If you go FSBO, always have someone else in the house when it is being shown (preferably a big burly man). Then again, some people "pretend" to be buyers so they can check your house out, then come rob you later, so put away ALL valuables. If you are moving, you'll need to do this eventualy anyway. Now I know there is no way to pack up your wide screen TV or pc's, but have as few things out and visible as possible.

If you are looking to buy while you are also trying to sell, this is where it will get really complicated, so the value of a REALTOR, over going FSBO is not necessarily just money, although there are plenty of statistics that show an agent gets you more money even after paying them, than a FSBO does for themselves, I'm sure there are some who've been very successful, but the odds are not with you.

You should look for a great agent in the area you live and let a professional handle the biggest asset you probably own. Having said that I will admit that even if I sold my own house, I'd have another agent handle it because it's hard to be objective about your own property, negotiate without getting insulted, and be objective about price and market.

Please post back and let us know what you do. We don't get follow up with these questions, and that's like watching the first part of a two part show ;-)

Hi Dan! Great question! FSBO selling works well in markets where it is a "Seller's market". 2007 and 2008 are predicted to be more of a "Buyer's market" due to several factors: chaotic state of the lending industry, the impact of the foreclosure market, the terms of the loan and the impact of the media on buyer confidence.

The exposure from a FSBO on the market is usually between 2-5%. The exposure from a Realtor who has truly embraced the Cyberspace Market is in the high 80%. This is huge! This means that the Realtor will bring more qualified buyers to the table to bring you as the seller the strongest offer.

In addition, the buyer has ability to know what the comparables have sold for and will reduce your asking price by 5-6%. Your gain is a negative due to the fact that you spend time and money in selling your home for less walk-away dollars vs. using a Realtor and paying commission.

Now, if this was a seller's market where you could put a "for sale" sign in your yard and wait for the multifple offers - I would recommend that you give it a try... But that is not today's market.

I understand the genesis of this question from home sellers, saving commi$$on payments, but one really has to look in the mirror and face the facts.

This is a very competitive market, a buyer’s market, and while you may always use asking price as the core of your home selling strategy as a for sale by owner, it is a strategy directly opposed to your goal of saving commi$$ion payments to a real estate agent.

Real estate agents sell homes for more net proceeds to sellers than they can on their own. The statistics support it, and they have the marketing machine to market your home effectively.

How many of us have undertaken small home repair jobs, painting, plumbing, electric, sprinkler – the list goes on. All ‘I can do it jobs’ at first glance, only to start the job and run into problems.
Doing it yourself is an achievement, but does the result look as good as a professional can do – hardly for the most part.

When attempting one of the larger transactions that one can undertake – selling your home. It saves to use a professional at the end of the day.
The boom days of putting a sign in your front yard are over – face the market and act accordingly.

When one has a broken arm, you go to a professional, the emergency room at the hospital, you don’t try to mend it yourself with help from internet articles. ;-)

See the attached for an article on the matter.

Dan,
Here's just a few facts that might help you:

Un-represented Buyers are not always forthright about their motives, intentions and financial situation. A REALTOR® will only work with pre-qualified prospects, and their motives and intentions will be clear before an offer is ever presented to you.

Most buyers do not want to communicate directly with the seller. Any follow up that you do personally to a buyer could be perceived as desperation. This can put you in a compromised position with the buyer.

Most sellers who spend their time as a For Sale By Owner eventually end up listing with a REALTOR®. A recent study by the National Association of Realtors found that only 11% of sellers nationally ended up selling by owner. That means that 89% ended up selling their home with the assistance of a REALTOR®.

Most serious buyers use a REALTOR® to help them find, negotiate and close a home purchase. This dramatically increases the number of potential buyers for your home.

Unqualified buyers can tie up your home and waste your valuable time. A REALTOR® makes sure that this does not happen.

Personality conflicts with a buyer can get in the way. A REALTOR comes between the buyer and the seller to make sure that personalities and emotions do not get in the way of closing the deal.

A recent study by the National Association of REALTORS® of closed sellers found that REALTOR® -assisted sales brought in an average of 20% more in sales price than For Sale By Owner sales.

A FSBO sign makes you vulnerable for any curiosity seeker or unsavory character that might not have the best intentions in mind. When you list, you don't have to deal with those risks.

Being accessible to show your home limits your personal time and it also cuts down the available showing times for your home. When you list, your property will be available during normal showing hours and the prospective buyer will always be accompanied by another REALTOR®.

Dan,
Four years ago, when the real estate market was hot, FSBO initiatives were frequently successful. This is a completely different market.....not the type FSBO's will be as successful. Today, it's much more than posting a sign in your yard and waiting for someone to like your home.
Today's successful sale, regardless of FSBO or conventional, requires a real marketing plan and a lot of hard work to make it happen.

The "Eckler Team"

Yes. FSBO's need a realtor. All the while they are trying to save a commission, their house sits longer. When you have a Realtor you don't have to do anything but keep up your home. We do everything else set up showings, do all the paperwork, hold all the open houses, advertise etc. Yes Realtors have been employeed by homesellers and buyers for over 200 years. Why? Because you need us. We need you too. Together it's agreat team.
Sheila Kusmierski
Omaha Nebraska

To avoid this you can use a lawyer to give advice and look over everything throughout the FSBO, but once again I think we are talking more money than just going with a Realtor to begin with.
~~~~~~~~~~~~
I would agree if this were a $100,000 home or less. Generally the cost for hiring a real estate attorney to help a seller sell their own home is no more than $10,000. And that is on the high end. If you assume that you will get stuck with paying a 2.5% buyers agent fee, a $400,000 house would be the break even point for selling FSBO rather than listing with a 5% commission. Slightly higher if you tack on the cost of a listing only service for MLS.

AH< YES, ALWAY PLEASANT TO NEGOTIATE DIRECTLY WITH SOMEONE WHO IS GOING TO THINK YOU"RE NICKLE AND DIMING THEM.
~~~~~~~~~~~~~~~
I have to disagree here. I prefer to deal directly with the person I am negotiating with. For this reason I hate going to buy a car and having the sales person "check with his manager" everytime a decision needs to be made. There are reasons to hire a Realtor, but for me this is not one of them.

Dan,

I once purchased a house FSBO and the owner told me that her original plan was to try on her own for 3-6 months and then switch to a Realor if she could not sell it. My sister sold her house in one day FSBO, but that was in 2006. Her plan was to go with a Realtor if she could not sell it 3 months. I think a lot of FSBOs intend to hire a Realtor after a certain amount of time passes.

and the kicker is that Baldur is the norse god of peace.

normally i defend vigorously the fisbos of this world but our friend baldur has clearly taken a few hits to the logic gene and had his diatribes are so poorly reasoned that they demand a big fat "dude, you are full of manure".

that is all.

Here are two quick websites that really give a few good, clear reasons as to why going with a Realtor is a good choice over FSBO. I have read that 16% of FSBO's sell and usually sell below market price. Also FSBO's fall out of escrow an average of 5 times before selling. That is insane, in this market, or any market for that matter. Think of how much work and money it takes a FSBO to get one buyer and realize on average you have to do that multiple times to get it to close. Also if you live in a state where people are big on lawsuits, so really any state in the US. There are several pitfalls that home sellers can fall in to, where if the home buyer becomes unhappy, even years down the road, up to seven years in some cases, with the right legal counsel they can easily come back and sue you. Which is extremely costly (more than a realtor to begin with) even if you win, and chances are in that case you did not do everything perfect and a lawyer will find that and you will probably lose the lawsuit. To avoid this you can use a lawyer to give advice and look over everything throughout the FSBO, but once again I think we are talking more money than just going with a Realtor to begin with.

http://www.realtor.org/realtororg.nsf/pages/post_contract_pitfalls

http://www.realtor.com/Basics/Sell/Why/Fsbo.asp?gate=realtor

http://www.realtor.com/Basics/Sell/Why/UseRealtor.asp?gate=realtor

Anyone can sell their own home. But a professional will do a better job and get more money for the FSBO with less hassles and will handle all negotiations in a professional as well as profitable manner. Most of the FSBO start off very excited and lose enthusiasm when no one makes any offer. Industry Pundits say that 90% of fsbo go to realtor for better exposure and professional handling.

I've never understood why anyone would want to try to sell on their own. Advertising is costly and not that many people look at FSBO's unless they are looking for a real deal. Usually you wind up paying more in concessions...not to mention time and hassles...than you would in commission. Pay a professional who knows the market and how to market your home and can deal with whatever comes up...sit back and relax and most likely net more money in the long run.

Selling a property is all about exposure. you do not maximize exposure as a FSBO. Especially in a buyers market. It is a numbers game.

Very true Craig, LOL, I have seen their prices fluctuate depending on whom they are talking to. I've seen them give open listings to different agencies, who advertise them with different prices (in the same publications, no less). It's hard to determine days on the market for FSBOs, too, since many take their house on and off the market depending on such things as company visiting for a week, an upcoming holiday, or whether or not they are arguing with their spouse that day.

This can be a tough question. It's hard to compare days on the market FSBO vs Realtor as there's really no way to track when a FSBO goes on the market and when it gets sold. The same goes for price. I've talked with FSBOs in my area and their price can change up and down depending on which friend or neighbor they talked to that week. History has shown that about 80-90% of FSBOs eventually end up listing with a real estate agent for many reasons.

To sell as a FSBO is to leave money on the table and increase your liability. For more info go to http://www.empireteam.com/fsbo_for_sale_by_owner.php

Hello Dan. Yes, it is true that most FSBOs give up and go with a Realtor. In my opinion this is mainly because most FSBOs do not have a plan, budget or the experience to sell a home. I am not here to tell anyone that they can't sell their home themselves. If you do, you have to treat it like a business. Ask yourself what you'd expect from your agent and then make sure you do it all. After a while, ask yourself if you'd hire yourself. Most home owners would not hire themselves once they have tried it.

Another reason why I believe FSBOs eventually turn it over to the professional is that being your own agent is time consuming. You have to be available for showings when the buyers are available.

Marketing the property is also expensive and time consuming. Unlike an agent, you don't have the established marketing tools. Yes, you can put an ad in the paper hold open houses and so forth, but you don't have an established website that's already been indexed on search engines. You can set up your own website, but will anybody see it? Most likely, potential buyers will come with an agent and you'll be asked if you cooperate with the agent, which means that they'll ask you to pay the commission for the agent. There goes 1/2 of your savings.

You can go to the link below to see what the National Association of Realtors FSBO stats reveal.

Good luck with your decision making process.