House For Sale By Owner!

I Don't Want To Pay Real Estate Fees!

The scenario called a house For Sale By Owner, or FSBO (fiz-bo) as it’s known in the trade, is a process exercised by less than 20% of the homeowners planning to sell their home.

Although the vast majority of real estate that’s traded in Canada and the US is done through organized real estate boards, there are still some cases where the homeowner tries to take on the complex task of selling their home by themselves ... thus the House For Sale By Owner.

The homeowner focuses solely on the idea of saving what they perceive to be a large commission, making the assumption that this approach will help them come out ahead on the transaction.

They lose sight of the many ways that it pays to use a professional sales representative.

In actual fact, this "tunnel vision" approach can end up costing the homeseller far more than any commission they save.

• Side Note:
  I am not trying to discourage you from attempting to sell your house for sale by owner, but rather provide you with a complete perspective on the process. (You've heard the expression about "not seeing the forest for the trees". I hope I can provide you with a clear view of the forest ... trees and all!)

A real estate professional can market your home to a vast number of potential buyers in a variety of ways.

There’s a lot more to marketing a home than simply placing a sign on your lawn or an ad in the paper. Targeted direct mail, posting on board listings, internet promotion, referral networks, newsletters, community events, and open houses are just some of the elements your real estate salesperson may use in developing a customized marketing plan that’s right for you.

And by showcasing your property to a far greater number of prospective buyers, you stand a far greater chance of selling your property at a price and terms that are better for you. Cutting yourself off from these prospects simply cuts down your chances of getting the best possible price for your home.

Have you ever stopped to consider why a homebuyer might be motivated to purchase a home that is NOT marketed through a licensed real estate broker? Rather, it’s being marketed directly by the homeowner, who due to their own personal interests or their lack of experience may not represent the property accurately.
So ... back to the question: Why then would a homebuyer want to deal with a house For Sale By Owner (FSBO)?

Simple!

They are trying to save the commission too!

So, if both the buyer and the seller of a FSBO are trying to save the same commission dollars, who really wins?

Remember, as a homeseller working with a real estate agent, you are in the driver’s seat and you pay only for results. No results - No commission or fees. If your home does not sell at a price and terms that are agreeable to you, then you pay nothing.

The real estate agent absorbs all the costs incurred while marketing your home, including advertising, signage, posting on the Internet, MLS fees and more, regardless of the outcome.

All things considered, it’s not what you pay in commission that really matters, it’s what you come away with as your net profit after the sale is complete that counts.

According to various surveys, between 80% and 90% of homeowners who attempt to sell their homes on their own eventually enlist the aid of a Realtor®. Of the balance of those who have their house for sale by owner, most end up lowering their price in order to sell.

Selling a house may LOOK easy, but there's far more to it than sticking a sign on the front lawn and waiting for the calls to come in. There's an amazing tangle of laws, regulations and knowledge that go into making a sale successful.
If you're going to succeed in selling your house for sale by owner, you'll need at least a passing knowledge of it all.