Most people don’t understand what a FSBO listing is.“FSBO” by its nature will stand for “For Sale By Owner”.Nearly everyone understand FSBO as “home for sale by owner”.Wouldn’t make more sense to call it “HFSBO”?
With a FSBO Listing, do you actually comprehend?
Most really don’t understand a FSBO Listing because Real Estate Agents don’t want you to understand. If you’re really understood a FSBO Listing, you would know immediately that you save a lot of money selling your own home.Compare to the 6%, on the whole a Real Estate agent may charge for selling, your house.Let’s just say you have $200,000 home and you’re going to pay about $18,000 to an agent. Do not disregard or forget about the closing cost!
Now wherever do those high fees go to?Well let’s break this down.These should only be considered estimates, since it would really take too long to break it all the way down. Now at this time if your house sold for $200,000 plus 6% fees, which it really the going rate. You would pay $18,000 to the agent and agency who listed your home.For the most part agents make 50% of that right off the top.That could be $9,000.00 to the agent.In a number of cases two agents will split the commission and each would get $4,500 for selling your home.The suggestive of remaining 50% most undoubtedly always goes to the agency again $9,000.Agency are ran by, a Real Estate Broker (that would be a whole different story).
Such high fees, why?
That’s a great question. I believe in most cases, the answer is greed.Agencies and Agents would want you to believe and try to justify this by saying they have high overhead cost.Ok, so what are the high overhead cost? Rent, phone, water, power or motivation.I would like to believe the response would be motivation.I am getting whole lot cash let’s sell this home! Not!
Here is how an agent sells your home in most cases.
You should remember the agent is an independent contractor and that’s important fact to remember.Stipulating an agent spends money to sell your home, this comes out of their commissions in nearly all cases. This means if they advertise your home, they have to pay for that advertisement.It’s been my experience you will Real Estate agents list your home in the MLS (Multi Listing Service). It’s a subscription service real estate agents use to place your home and hope somebody comes along and find your home.Next they put a notice in your front yard “Home For Sale” call me.Now if you’re blessed they might have access to their own magazine and list your home and pay for the print.Some agent will do what they call “farming”.Distribution of a post card to the nearby houses, letting them know they just listed a home for sale in the area.This is really done to just get more listings.More listings, give to better odds on selling a house.Independent Contractors will only get compensated if they sell.So how much should this cost? Not $18,000.00 that is for certain.
FSBO Listing Tip!
Take that $18,000 upon yourself and promote your home yourself! Do you take your car to the dealer for consignment? In most cases you don’t.You basically put some ads, a few free, a few paid for and place a sign on the car “for sale”!Picture how, a good deal media you can buy for $18,000, believe me it’s a lot and most don’t understand.Do not be terrified to sell your own home. Take the time and do your research, especially in this tough economy. Use your resources out there. There are so many free places to advertise you FSBO Listing. Like at FSBO-Search.com, this is free to get a FSBO Listing classified add. Why not try Ebay.com, you do not have to list an auction and thousand if not millions will positively seek out on Ebay.com every day.Community papers, there excellent! How about those papers that some of the Real Estate Agency might advertise their agency to get your MLS Listing!Be resourceful, be you and get the word out everywhere you can. The more traffic you create about your house the better chance you have to sell your house.
Now one extra helpful tip concerning a FSBO Listing, for you.
You really don’t have to remove the Real Estate Agency out entirely. Yea I know, I have been bashing agents this whole time, because I think there lazy (honestly).You can leave the door open for them to advertise and sell your home. Offer 2% to 3%, to the selling agent or agents. If there really motivated to sell your home, they may bring you a buyer. But still that’s $9,000 for advertising and possible $9,000 for an agent. This way you’re not committed for $18,000 for a sign in your front yard.I like to watch my pennies and be thrifty, but not when it comes to advertising. Use smart advertising, look for the biggest bang for your buck.How many people will be targeted reading your ad, your smart do the math.
Educate yourself here are some really good resources to learn from:
A really good learning site by FTC: Competition in the Real Estate Marketplace
FSBO-Search.com you can get a Free FSBO Listing and great information.
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Tags: For Sale By Owner, FSBO, FSBO Listing, FSBO search