FSBO VS REALTOR?
While considering topics for my blog, one that came up was For Sale By Owner aka FSBO vs REALTOR. To be honest, this is topic I really did not want to write about. There are so many studies, articles, blogs and YouTube videos on the subject already. For the most part they are all written by someone in the Real Estate Industry. Generally they are self-serving documents designed to convince you to use a Realtor.
So why would anything I write be different?
My answer: It won’t be. Here is why. I believe in what I do. I believe I bring value to each and every person I work with. This blog will not be objective at all. In a straightforward way, without going into a lot of detail, I intend to tell you why you should not sell your home as a FSBO.
What does a Realtor Provide?
Whenever I meet with a prospective client that is interviewing Listing Agents, I spend most of my time demonstrating the tools and services provided and the value those tools and services provide.
I will start by listing some of the tools and services provided:
- Comparative Market Analysis – providing an objective price target.
- Preparation of your home for Sale.
- Professional Photography, Video Tour and Various Types Printed Material such as post cards, flyers and brochure.
- Listing on the Multiple Listing Service, Zillow, Realtor.com and numerous other websites.
- Paid Social Media Ads.
- Schedules Showing and handles showings.
- Negotiation with perspective buyers and their agents.
- Preparation, review, and explanation of all paperwork.
- Schedules Inspections, Appraisals, HOA/Condo Approvals and ensures they are completed pursuant to required timelines.
Downside of being a FSBO
So why don’t some seller want to use a Realtor? Most believe there is no downside. They only see the cost. There are downsides. Let take a look at a few of them.
- For the non-professional, evaluating the correct price can be a challenge. If you ask too much, you lose you miss the target market and if you don’t ask enough, well I think we know the answer to that.
- Buyer wants to discount the commission off. If you do, you have paid for a Realtor without actually using one.
- Knowledge of real estate contracts and addendums. Do you need a Lead Paint Addendum or a HOA/Condo Association Addendum.
- Qualifying the Buyer. Is the buyer Pre-Approved by their lender? If paying cash, do they have funds available?
- You have to schedule showing and be available to show the home.
- If your home is not listed on the MLS, you will not have Realtors showing your home to their buyers.
- Administration of the Transaction. Ensuring all deadlines in the contract are met.
As you can see there is a downside to not using a Realtor.
As I said, this blog post is not objective at all. I do believe qualified professional Realtors bring value to their clients.
For those of you who are considering selling your home and are looking for a Realtor, check out links below to my Blog post and YouTube Video:
“Five Factors in Selecting a Listing Agent”
For Those looking for something a little more objective, below you will find a link to John Wake’s Blog on Real Estate Decoded. He challenges many of the assumptions made by the National Association of Realtor as it pertains to FSBO’s. It is a good read.
To read my other blog post or learn about me, check out my website:
FSBO vs Realtor was written by Troy McDonald who is a Realtor with Coldwell Banker Realty in Stuart, Florida. He is also an Elected City Commissioner and Mayor of Stuart, Florida.