30 Sep 2005 06:23 am
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As if a professional realtor hasn’t beem aware of this…
Many FSBO sellers will “test” the market themselves, and then if after a couple of weeks they have no serious buyers, they then hire a real estate agent. Sellers might waste valuable market time by failing to sell the house, but the thinking usually goes something like, “If I can save the Realtor commission by selling it myself, then I’m money ahead.” However, there’s a big hole in that logic.
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August 1st, 2006 at 2:20 pm
The realty is For Sale by Owner is the fastest growing sector in the real estate industry and that scares (or it should) the crap out of realtors - maybe not individual realtors but certainly the association as a whole. The Canadian Real Estate Association (CREA) has been running an anti-FSBO campaign all summer – “FOR SALE BY OWNER is not for this owner” – give me a break. The usual crap – we are trained professionals, we screen our clients (BS), we professionally market your home - blah blah-blah. If I was a Realtor the opportunity that the internet provides for significant FSBO growth would scare the crap out of me. The fact is thousands of homeowners have successfully sold their homes and saved literally thousands of dollars in real estate fees. Realtors will tell you that FSBO isn’t for everyone, they will even resort to scare tactics to steer you away from FSBO - but for the homeowners that are successful the savings are significant. Did you know that there was 91 BILLION dollars paid last year in real estate commissions!!!! So you truly appreciate the magnitude of that number, that is 91 BILLION dollars in lost homeowner’s equity. One FSBO site in Wisconsin facilitated $300 million in FSBO sales and generated $300,000 in related FSBO fees associated with those sales – real estate commissions on those sales would have been $18,000,000! I have done some research (internet based) into the FSBO phenomena (Google returns 38 million sites based on a search for “FSBO”). While the general concept remains intact (home owners selling their own homes) the approach, presentation, fees, options, etc literally run the gambit. The most noticeable consistency I noticed was the overall unprofessionalism and downright ugliness of most sites. Some were so ugly it was shocking - they looked like sites developed by Grade 3 students. From my experience in sales and marketing you only get one chance to make a good first impression - most FSBO sites miss the mark significantly on this point. I did however come across a few sites that have embraced the concept - one in particular was actually FREE! While many FSBO sites claim to offer “FREE FSBO” there is only one that I came across actually delivers on that claim. The site is www.freefsbo.com - they offer a Free FSBO Kit that includes a professional lawn sign that actually looks good (and modern), a free online listing complete with unlimited pictures, full feature sheet and some FSBO tips that were somewhat helpful. The bizarre thing is the FSBO Kit, as advertised, is actually free. There is no bait and switch, nothing underhanded whatsoever - there is no “upcharge” to put in your contact information, no fee to expedite the listing, no fees to upload pictures, or any fees to get a “better” webpage. The way they do this is simple - they sell your name to companies that want to solicit business from home owners - big deal. I have certainly gotten less for more. No idea who buys this information, I suspect moving companies, legal forms, mortgage brokers - I’m sure realtors are likely lined up to buy this information (I would be if I were a Realtor). Anyways, I personally don’t have a problem with it. Please note they are very upfront about what they do. Anyways - just an opportunity to get something for nothing - pretty rare these days
. PS, I signed up, my webpage was active within 3 days and I received my lawn sign via UPS within 5 days and it cost me nothing. And apparently the war is heating up - http://news.com.com/Real+estates+Net+turf+war/2100-1038_3-6099762.html?tag=html.alert.