8 reasons FSBOs should list with a Realtor

*By Bernice Ross / Inman.com / April 26, 2012

Can you explain why it’s smarter for a potential home seller to list with you, a real estate agent, as opposed to attempting a for-sale-by-owner (FSBO) deal? Showing the FSBO the value you bring to

the transaction may be much easier than you realize.

Many real estate experts thought the Internet would result in more people being able to successfully sell their home without a real estate agent.

The exact opposite has happened. According to research from the National Association of Realtors’ latest Profile of Home Buyers and Sellers, FSBOs accounted for 10 percent of sales in 2011, down from 14 percent in 2003 and 2004.

Nearly half of FSBO sales were intra-family transfers or other situations where the sellers already knew the buyers. Only 6 percent of 2011 sales were FSBO transactions in which the seller did not know the buyer.

Here are some of the key factors that deter most homeowners from selling without an agent.

1. The decline of print advertising as a major lead generator
In the past, newspaper ads would produce a fair number of calls on FSBOs. Today, a three-line ad in the local newspaper has little chance of competing with the wide array of information online, including video, color photos, 360-degree virtual tours, and a wealth of community and lifestyle data.

2. Buyers seek rich content
IDX and VOW solutions, Realtor.com, Trulia and Zillow provide access to virtually all the listings in most market areas. Most buyers comb these major sites simply because it’s more efficient than searching for single properties.

3. Instant gratification
A third problem for FSBOs is that people who surf the Web usually are seeking instant gratification. In fact, most visitors will only visit a website once and stay for 15-30 seconds. If the FSBO has no strategy for capturing the lead’s contact information or for immediately following up, the lead moves on to the next website. Even if the Web lead does contact the FSBO, unless the buyer gets back to the FSBO quickly, that lead is gone.

4. Buyers want the savings
Even for those who do search for FSBOs, most buyers automatically deduct 6 percent from the sales price because they want the savings in their pockets, not the seller’s. The result is that many FSBOs end up selling for up to 20 percent less on average as compared with sellers who hire a Realtor.

5. The needle-in-the-haystack effect
A major challenge for FSBOs is the needle-in-the-haystack nature of the Web. There are millions of websites including the hundreds of thousands of company and agent sites. Without search engine optimization, meta tags and a host of other branding strategies to achieve high Web placement, the probability of the Web buyer finding the FSBO’s single listing online is small.

Of course, the buyer could post on sites such as ForSalebyOwner.com, ByOwnerMLS, or utilize the "Make Me Move" feature on Zillow. The challenge is that unless the buyer specifically wants to purchase a FSBO, it’s much more efficient to search on the brokerage or MLS sites.

The FSBO could also put his home on Craigslist. There are two challenges, however. First, the FSBO has to repost the ad regularly for it to appear near the top where it can be found. Second, there have been so many rental scams and unsavory people using that site to identify targets for possible criminal activity that listing there could be a major safety issue.

6. Web leads are reluctant to share contact information
Another issue FSBOs must face is that most Web buyers are reluctant to provide contact information to a stranger, especially during the search process. Instead, buyers identify homes they want to see and then normally contact a single agent who can show them everything they want to see, not just a single home.

7. Availability for showings
Because FSBOs don’t have lock-boxes, that means the FSBO will need to be present for every showing. There are numerous challenges with this situation, the most important of which is safety. Is the person who wants to see your house legitimate or not? Even if you accept an offer from a potential buyer, how do you know whether the person meets the income and credit requirements to close the deal?

8. The proof is in the pudding
Here’s a great closing question for sellers who believe that becoming a FSBO is a smart move. Did you know that Colby Sambrotto, founder of ForSalebyOwner.com, which is one of the most popular and robust FSBO sites on the Web, ended up listing his home with an agent AND paying a full commission?

If he couldn’t get the job done for himself using his website, how effective do you think this approach will be in getting your home sold for the highest possible price in the shortest amount of time?
The climate has never been better for prospecting FSBOs. If you haven’t considered adding this valuable niche to your business, there’s no better time than right now.  (Ross, Bernice.  April 26, 2012. Inman.com  http://www.inman.com/2012/04/26/8-reasons-fsbos-should-list-with-a-realtor/)

Maybe it's time to stop the uphill battle of trying to sell your property...all by yourself.  Connect with Greg Rapp / Wallace Realty, and get all the advantages of working with an experienced and accomplished licensed Realtor with proven marketing plans that WORK!   

704.213.6846

 

Greg Rapp 
Wallace Realty Co. 
704 213 6846 Mobile 
704 636 2021 Office 
www.realestatesalisbury.net 




*Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, trainer and author of the National Association of Realtors’ No. 1 best-seller, “Real Estate Dough: Your Recipe for Real Estate Success.” Hear Bernice’s five-minute daily real estate show, just named "new and notable" by iTunes, at www.RealEstateCoachRadio.com. 

3rd Annual “Buy History” Event ~ Sunday June 3rd ~ 1PM - 4PM

Sunday June 3rd, the Historic Neighborhoods Alliance (HNA) hosts its 3rd annual historic open house event: "Buy History".  All real estate agents and home owners (For-Sale-By-Owner) who have homes for sale in any of Salisbury, North Carolina's  historic districts are invited to participate in an area-wide open house. By opening as many homes for sale as possible in Salisbury’s historic districts in one afternoon, the HNA promotes sales of historic homes, strengthens neighborhoods, and raises awareness of the benefits and livability of Salisbury’s downtown historic districts.

Salisbury, North Carolina is known for its rich heritage of Piedmont architecture dating from the nineteenth and twentieth centuries.  Domestic and commercial buildings from a variety of stylistic periods contribute to the distinctive character of the downtown and adjoining neighborhoods.

 

Salisbury has taken a progressive approach to preserving historic resources, establishing itself at the forefront of preservation in North Carolina with the designation of its first historic district in 1975. Soon after, the City Council adopted a local historic overlay and established the Salisbury Historic Preservation Commission to oversee design review. In 1980, Salisbury was among the first five North Carolina communities to participate in the North Carolina Main Street Program.

Today the historic inventory includes ten districts as well as seventeen individual buildings listed on the National Register of Historic Places. Five of these districts, including the downtown, are also locally-designated with design review for alterations or major changes. This stewardship of the downtown and historic neighborhoods, in conjunction with federal and state tax incentives with substantial private investment and Salisbury's Historic Preservation Incentive Grants, has resulted in an award-winning downtown and urban core that is revitalized, vibrant and authentic.

Buy History

The "Buy History" open house event will be held:

When: 1 to 4 pm, Sunday, June 3^rd  

Where:  Homes in any and all of Salisbury’s historic districts (i.e. Fulton Heights, West Square, Downtown, North Main, Ellis Street Graded School, Brooklyn-South Square, Kesler/Canon Mill, Shaver Rental Houses, Long Street/Park Avenue Corridor, Salisbury Railroad Corridor, Livingstone College)

The "Buy History" flyer showing the fifteen (15) homes open for viewing can be downloaded at http://www.historicsalisburyhomes.com/images/stories/buy-history/2012_Buy_History_Property_List.pdf

A map showing the locations of each "Buy History" open-house can be viewed at http://www.historicsalisburyhomes.com/buy-history.

The HNA provides the following:

1.Flyers listing all of the open houses with a picture and basic details of each home

2.Maps of the open homes and the historic districts

3.Brochures on tax credits available to buyers including the possible 30% North Carolina HistoricPreservation Tax Credits and information on city grants for those in a local district

4.Brochures on the benefits of living in Salisbury’s historic districts and the differences between Salisbury’s local and national historic districts

For more information on The Historic Neighborhoods Alliance "Buy History" historic open house event, contact Realtor Greg Rapp at 704.213.6846.  Make a historic home in Salisbury North Carolina yours today!

To FSBO or Not to FSBO ~ That is the Question! The Disadvantages of FOR-SALE-BY-OWNER.

If you are going to sell your property, You'll be thinking about whether to work with an agent or do a For-Sale-By-Owner or FSBO. Many are trying FSBO because they think that they will be able to save money on Realtor commissions. Selling property in this manner will spare folks from paying commissions and many feel they will be more in control of the processes as well as the decision-making, but sellers should understand the disadvantages to selling their home themselves.

There are several disadvantages to trying to sell your home yourself. Selling a house takes a lot of time and attention to detail. Real estate agents are familiar with all the processes and the paperwork. They know how to prep a house for sale, deal with potential buyers, set up open houses, and how to handle financing, closing, and legal issues. Their expertise can also have a major impact on the sale.

It is important to know the drawbacks and disadvantages of FSBO to consider if you are making such a decision. Below are seven disadvantages of selling the property yourself and the advantage of working with an agent:

1.Let’s face it ~ Real estate agents are much better trained and informed than the average homeowner. There are many and frequent changes in the provisions regarding the selling of property. Even real estate agents research to stay updated!

2. The competition in the real estate market is extremely tough. This is why it is difficult to sell a property today. There are many sellers in the market and a limited number of buyers. Many sellers are lowering their prices in order to compete in the market. Many who take the FSBO route do not know how to present their property or market it well, and end up in losses. If you are competing with experienced real estate agents, your chances for success are extremely slim.

3. Selling your property is time consuming. There are many more processes involved than just putting up a For-Sale sign. The real estate agent is involved in these processes EVERY DAY and is extremely familiar with all the ins and outs of selling a home. Your property needs to be marketed properly by advertising it, making sure it reaches as many people as possible. Real estate agents have many tools at their fingertips to market your property, with a variety of methods to attract the right buyer, that are unavailable to the average FSBO home seller.

4. You have limited contacts. Marketing can be very difficult because unlike the real estate agents, you do not have access to all the different available lists. It is extremely important that you are able to contact a wide reach of people so that you can attract more buyers. Because a licensed Realtor can do this, he has a much greater opportunity than the average FSBO person to get you good and realistic offers.

5. You are emotionally attached to the property. You may overprice it because you think that it should be valued that way. The right real estate agent can make sure your home is priced right for the market. A real estate agent will be familiar with recent sales and home prices in your area, and market demand. Overpricing a property can make it languish unsold for months or even years, undermining any leverage you as a seller may have later in negotiating. 

6.  If you are selling your home yourself, it can be awkward for you to show it to buyers, and especially awkward to hear any criticisms they may make. The real estate agent can be the professional interface for this difficult process. If buyers have negative comments regarding the property, he can catalog them impartially and provide the comment to you in a manner that could turn out to be helpful, letting your make improvements that may ultimately help sell the property. Your Realtor will not take the comments personally. They could turn out to be helpful later on.

7.  The right real estate agent will know the rules. There are many and varied state laws and regulations governing fair housing, lead paint disclosure, and other requirements. Selling a home requires that you be in full compliance of these regulations. There are also rules governing offer-and-acceptance (your sale negotiations with a buyer) and sales contracts. The last thing you want is to risk a future lawsuit for not disclosing some defect on your property.

There are other benefits to working with a real estate agent. Consider choosing an agent who is a Realtor. In addition to being licensed by the state to sell real estate, Realtors, like Greg Rapp,  belong to the National Association of Realtors and must abide by a strict Code of Ethics. The National Association of Realtors has a code of ethics that will knock your socks off, and they are very strict in dealing with people who don't abide by them. Also, only Realtors have access to Multiple Listing Services (MLS) through which members share listings and have access to many more properties than non-members. When potential buyers contact a Realtor and explain what they are looking for, the Realtor may (1) already know a list of properties that meet the client’s needs, or (2) can research the MLS listings to see what matches those requirements. Your FSBO home will not be showing up on this list and will likely be overlooked!

Choose an agent who listens to your needs and takes the time to explain things you might not understand. Real estate transactions are complicated and full of confusing terminology. Greg Rapp will both know the answers to your questions and take the time to explain them. It's extremely important to find an agent whose personality you like. You want them to be bright, professional, trained, and someone who works in the business full-time, but personality is important. You are going to spend a lot of time with this person whether you are buying or selling.

The right agent will work with your time schedule. If you can only show your home on Sundays and your agent does not work that day, look elsewhere. If a listing agent does not work on weekends, consider who will be responsible for showing the house on weekends or holding open house. Whether buying or selling a house, your agent will set up appointments for you to either tour different homes, or show your home for sale. The Realtor will accompany you when you tour homes for sale. You can and should ask your agent many questions; after all, he is the expert. Many of Greg Rapp's clients have often expressed the value of his willing to work a flexible schedule that accommodated their busy lives.

Choose an agent who can and will provide other services. Greg can help arrange the house inspection, refer you to qualified lending professionals and real estate attorneys, and help you conduct a study of the property's value.

Some homeowners, faced with the prospect of selling their home, may weigh the possibility of selling the home themselves ~ without the benefit of contracting with a REALTOR. Beyond the issue of commission, many homeowners are wary that real estate brokers, for all their efforts and expertise, may not have their best interests at heart. Selling your home involves a lot of homework and homeowners making this decision must weigh their options carefully. Do you have the time to advertise and open your home for showings? Do you have what it takes to ask for an offer and negotiate a deal? Will you be able to close the deal? This is a huge undertaking for most people and not everyone has the level of expertise or training to take it on without some help. FSBO may allow you to save money because you will not be paying sales commission. However, you may lose a lot from the expenses incurred in advertising and marketing your property that show poor results. This will lead to fewer buyers and low offers. You will more than likely make the most if you work with an experienced sales agent.

 

Working with a real estate agent is necessary. With the right real estate agent, you are sure that your property is getting the maximum exposure and technical inputs.

If you have been thinking of selling your home all by yourself, think twice and think carefully. Homes in Salisbury/Rowan County, North Carolina deserve careful marketing and selling. With a licensed REALTOR like Greg Rapp, you are sure that selling your home will be a success! Greg Rapp DOES have your best interest at heart, knows the market, and uses the tools that WORK to sell your home! 

Need a REALTOR to avoid the FSBO pitfalls?  It's not too late to call Greg Rapp at 704.213.6846.