FSBOs (For Sale By Owner) – please value my services and profession
It’s spring and the inventory of homes for sale by owner (referred to as FSBOs in our industry) is creeping up, right along with the beautiful azaleas. How hard can it be to sell a house? Stick a sign in the yard, show it, sell it – or so many think when they begin.
Many will advertise through Zillow or in their literature that “Owner will work with Buyer’s agent,” which is appreciated when that’s clarified up front. So, if my Buyer would like to see the FSBO listing, I know that the Seller is agreeable to pay my commission. Please note that the FSBO will NOT be paying a Realtor to represent him, so he’s still getting by at 50% of the cost of full Realtor representation.
But, I’m going to help him anyway, because working with a less than educated Seller has the potential of hurting my Buyer in the long run. So what do you think I’m going to do for this Seller FOR FREE?
First, I’m going to present AND EXPLAIN my Buyer’s offer to him. I can’t email it to his Realtor for her to present and negotiate, because he doesn’t have a Realtor. If I just deliver it without explaining it, he’s going to wind up as one frustrated Seller and I’ll wind up with multiple phone calls with questions.
It doesn’t stop with presenting, explaining and negotiating the offer. It must be accompanied by a Net to Seller reflecting the offer. If he doesn’t understand what charges are required by the state, city and federal government in order to sell his house, it could be disastrous or failed transaction if all that were discovered the day prior to closing.
FSBOs (For Sale By Owner) – please value my services and profession
I’m going to introduce the Seller to my contact at the Title company who will bring his abstract up to date and get his title work done. I’ll be present at inspections and help him locate repairmen if he doesn’t have his own sources. I’ll probably loan him a keybox so that workman can have access to his home if needed. As you can imagine, there’s more explaining, negotiating and hand-holding throughout this process.
I don’t know what the Seller does for a living, but if his boss asked him to do MORE work than expected for HALF the amount he is normally paid, I doubt his response would be favorable. But few people have any qualms about asking a Realtor to do just that or to discount our fees.
So, Mr. FSBO, please read this over again and tell me that you don’t need or value my services. In fact, you might consider paying me a bonus above the standard commission.
Content written and published by Lori Cain.
