What are the advantages of using a broker whose advertises on FSBO websites since I will not use a realtor?

Asked by Stephanie, Scottsdale, AZ Fri Feb 13, 2009

I didn't work my question correctly in my last request.

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9
Keith Sorem, Agent, Glendale, CA
Sat Feb 14, 2009
Stephanie
Most buyers, over 90%, use a REaltor when they purchase a property. We also know from surveys that over 85% of the time owners will eventually list with a Realtor because if they really need to sell, and they sell without professional representation, they only sell about 10% of the time.

That means in most cases if Realtors establish a relationship with a seller trying it without professional representation, eventually they will need to list their home to get it sold.
0 votes
Bill Eckler, Agent, Venice, FL
Sat Feb 14, 2009
Stephanie,

If we understand your question correctly......

The agent posting his property on a FSBO website may be trying to make a case that regular sales present better value and opportunity.

The vast majority of sellers going the FSBO route do so because they don't want to pay the realtor's professional fees. During the "old market" some buyers went this route because the viewed FSBO as a means of getting a home of their choice at a lower price.

With today's market being completely different, being led by "short sales" and "foreclosures" buyers are still looking for the best deals. Unless the FSBO sellers can compete with these heavily discounted prices, they are in a losing game.

The broker may be posting his property on FSBO to illustrate to the website users exactly where the best deals are.......................

Good luck
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Lorie Gould, Agent, Duluth, GA
Fri Feb 13, 2009
Not sure if the question is worked correctly this request either but what I am reading is that you are planning on using a "flat fee" brokerage firm that gives you access to some websites including FSBO websites. I am reading that you want to know the advantage of using such a broker versus simply doing it on your own, am I even warm on your question?

The advantage of the "flat fee" broker versus on your own is that you do obtain some additional exposure; however, this additional exposure can be devastating to your process if you do not know what you are doing and you don't price your home correctly. Statistics show that a home that sits on the market for an extended period of time takes a financial hit compared to a home that is positioned to sell from the start.

Lastly, Realtors earn majority of their commissions negotiating on your behalf and heading off hurdles walking the contract to the closing table.

Some people succeed by owner and some succeed with flat fee companies; however, majority of people need full service full representation Realtors for the largest transaction that they will most likely experience in their lifetime... which is buying and/ or selling a home.
Web Reference:  http://www.HomesByLorie.com
0 votes
Stew Keene, Agent, Scottsdale, AZ
Fri Feb 13, 2009
Stephanie,

It sounds like you had a terrible experience using a Realtor and being a Realtor let me apologize for that.

We can (as Realtors) give our objective opinions as to the reasons you should or shouldn't use a broker as a FISBO representative or not. We could also explain the reasons you should use a Realtor, but...

It sounds to me like you really have the home sales game covered so why even ask the question here on Trulia about using This FSBO program you are talking about.

My recommendation is you forget about the FSBO broker and do the following.

Take the value of the home from 2005 and cut it in half. You might have a chance then of receiving offers to purchase your home and then be prepared to give up 5-10% of that price and perhaps even some contributions toward closing costs.

Selling your home will be very simple that way and you won't have to use a Realtor or a Broker at all.

Best of Luck,

Stew Keene
Inspire Realty Group
Scottsdale, AZ
0 votes
Lisa Miller, Agent, Peoria, AZ
Fri Feb 13, 2009
Hi Stephanie,

Advantages...
Expert knowledge of home values, saves you time and money (advertising your home & negotiating the best sale price for you), less stress and worry for you, Real Estate market experience.

As Laura stated, a Broker is a licensed Real Estate Agent who has taken Broker classes to earn the designation. There are a lot of good Realtors out there to help make your home selling experience a good one. Why would you not want to be represented so that you won't be taken advantage of during your transaction?

Please reconsider talking with a Realtor - a consultation might be a really good thing for you. It might help you understand why you should be professionally represented.

Good Luck !!!
0 votes
Donald Keys, Agent, Scottsdale, AZ
Fri Feb 13, 2009
Stephanie,

If you could use a REALTOR to sell your home and be able to put more money in your pocket compared to selling it yourself after paying all expenses would you?

Here is my general advice to sellers:

1) If you don't have to ABSOLUTELY sell your home, then don't put it on the market - you are wasting everyone's time. (Listing agent, other sellers, buyers, buyers agents etc...)
2) It's a "buyer's market" not a "normal" or "seller's" market.
3) Could you rent out your home until prices return to "normal" (Many areas are undervalued right now)?
4) Are you ready for a "distress sale"?

To answer your question EXPOSURE is 20% of your marketing and if a REALTOR can advertise your home in more places, you have a better chance of getting more buyers in the door and a bidding war breaking out. Unfortunately over 65% of all the homes that are pending (under contract) currently (2-13-09) are BANK FORECLOSURES. Bank foreclosures are absolutely going to KILL a normal seller in this market and force them to take way less then a home would be worth. The other 80% of your marketing is price - are you ready to compete with big banks who need to get properties off their books at almost any price?

The FSBO site would help but would probably give you less than 1/10th of 1 percent advantage of a BROKER or REALTOR who doesn't advertise on the site.

If you do ABSOLUTELY have to sell your home, feel free to contact me for a free, no obligation consultation and home evaluation.

I hope this helps.
Web Reference:  http://www.TheKeysTeam.com
0 votes
Laura Myers…, Agent, Scottsdale, AZ
Fri Feb 13, 2009
HI Stephanie -
I'm not clear on the goal with this questions but if you are working witha broker that is essentially working with a Realtor as a Broker is a licensed Realtor who has completed their brokers exam etc. Now you may be approached by a Realtor who will help you by stating they will advertise your home on a FSBO site etc. This is often a way to help some one not interested in representation. As a Realtor myself I help in the same way to 1) have FSBO homes on my list for my buyers 2) be your resource in helping you sell yourself or should you decide to later list with a Realtor be the one to call since by that time you would have known me well enough to interview with me.
Many FSBO websites only allow owners to run ads and not Brokers so double check your claim
I dont see the advantage of lisitng your home on other sites unless it is my personal website. By listing on my personal website I can get buyers who are interested in your home or others prepared to buy and thus have a diverse availability for my clients.
So in truth
Realtors approach FSBO all the time and ask if they mind being on their FSBO site. All of them are interested in helping you until your home sells on its own or they can become the Realtor of choice for you. Anyone telling you different would be questionable in my book. We do work for a living and compensation agreements are the only way to secure that.
I have a list of 18 questions you should ask any Realtor before you list with them if you want it is yours.
Verify that you have properly priced your home and educated yourself on the legal issues of home selling and prepare the home well. It can be done on your own. If it gets too much though contact a professional Realtor and have them carry the load for you. Good Realtors will net you a real deal.
Check the neighborhood of your home via Zillow, Trulia etc. my website is http://www.DesertRidgeLifestyle.com and you can search via neighborhood map to compare homes for sale on the MLS. It is updated hourly.
Good Luck
All my best
Laura Myers
0 votes
John Schultz, Agent, Scottsdale, AZ
Fri Feb 13, 2009
Why would a broker advertise your property on a FSBO site (if there's nothing in it for them)? If you're not going to use one, you're immediately eliminating a large pool of potential buyers - and in this mkt where qualified buyers are scarce why limit your chances at selling before you even start?

Also, many buyers don't want to even look at FSBOs because they think if sellers are too cheap to use a Realtor, they're probably not going to be remotely reasonable with regards to what price the home ~should~ sell for in this market. Just some thoughts....

If you don't price the home properly in this market IT WILL NOT SELL. Price sells it.
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