I’m sure everyone has noticed that FSBOs (For Sale By Owners) are sprouting
up everywhere. The more FSBO signs that get put on the lawn, the more the next
door neighbor will seriously consider the same route, and the cycle is
rampant!
I have taken special note of this fact because I am in the real estate
business and realize that homeowners are getting smarter and smarter. Many of
them can no longer accept the tremendous loss of cash that they are giving away
to a Realtor that lists their home.
What every For Sale By Owner has in common is that they want to save
thousands of dollars in Realtor fees. What normal human being wouldn’t? Why not
take on the task because in the end all the FSBO wants is a sale from a
qualified buyer. The concept seems pretty simple, sell for top dollar in the
least amount of time and put maximum cash in their pockets. Believe it or not,
this can effectively get accomplished by the FSBO.
Realtor commissions appear outrageous and they seem to be escalating. More
and more Realtors are trying to justify an 8 – 10% commission! Can you imagine?
In some areas, the average home sale is anywhere between four hundred thousand
and six hundred thousand dollars. When a seller lists their home with a Realtor
who commands a 6 – 10% commission, there goes $24,000 – 60,000 in cash! Most
FSBOs and aspiring FSBOs would agree that this amount of money is well worth a
little time and effort.
I know how the business works and know that FSBOs are a great way to save a
ton of money! I am giving this advice because for one, I can not possibly sell
every home in America, and secondly there are people who honestly are not in a
position to afford a Realtor. I have seen cases where a homeowner will let their
property go into foreclosure because they don’t know where on earth to begin to
sell and because Realtors may have frightened them into thinking that they can
not possibly do it on their own. I also know that Realtors sometimes use a bunch
of scare tactics with a lot of legal jargon which ultimately mentally paralyzes
the homeowner. Unfortunately when this happens, many homeowners resort to taking
no action at all. In the case when a home has to be sold and the owner can not
afford a Realtor, foreclosure results. This is an absolute tragedy! I will not
say that I am disgusted with the business, but sometimes disappointed in the
ways home owners may get exploited.
Do the research, invest a little time to collect information so that you are
confident in your endeavor.
One last word, whether Realtors want to admit it or not, FBSO’ are here to
stay!
