FSBO?... Look at your Flat FEE Real Estate Options
Monday, July 13, 2009, 10:38PM
Many people I speak to on a daily basis are thinking of selling their home by owner also known as (FSBO). At the same time they realize it can be a daunting task. Some are up for it others are not.
The money saved by selling your own home can be significant indeed. If your home is selling for $300,000 and paying a traditional realtor 6% or more it can cost $18,000 to $21,000 in broker commissions alone. I’m not sure about you but it takes me a long time to make $18,000. How long does it take you to make $18,000?
Now let’s get back down to earth with some cold hard facts. You should know that only 14% of FSBO are successful at selling their own home. That means 86% never make it to closing and the vacation you were dreaming of with all the money you saved is probably not reality.
We get the 14% figure from NAR (National Association of Realtors) who also supplies data to our government. Looking at the data further the vast majority of the FSBO homes sold are actually sold by a buyers Realtor. This means most FSBO probably paid a commission of 2.5 to 3% anyway. The true figure is not know but most estimate FSBO homes that are sold with no Realtor involved are less than 1%.
At Colorado Discount Realty we don’t discourage the FSBO route we just encourage a backup plan or even a forward thinking plan if you do not sell your home. This is one of the reasons we created our multi-tired flat fee approach to FSBO and home sellers. We have found many FSBO become distraught especially in the current market. Having become frustrated and worn out many run to the nearest full commission real estate agent that will promise them a fast sale or some wonderful marketing plan. In our opinion you need to look at all your options.
Internet marketing and the MLS (Multiple Listing Service) is the key to getting your home sold. Most FSBO don’t have access to all the top websites including Realtor.com the most used site in the country by buyers. To be a member of your local MLS you must be a licensed Realtor and pay dues. In fact approximately 90% of all buyers reported that they started their search on the internet before buying their home. With the MLS and proper internet marketing you have the potential to expose your home to all buyers and Realtors in your area.
There are many big FSBO websites and companies, most not licensed in your state and have no experience selling a home. They know the FSBO statistics and use them to their advantage with ala carte pricing for many services preying on desperate FSBO home sellers. In fact I had a desperate FSBO seller tell me he started with one of these national services and after he was done it cost him thousands of dollars in upgrades and fees in a desperate attempt to sell his home.
The reason we started Colorado Discount Realty was to provide Colorado home sellers a clear cut flat fee, commission free real estate service with the best internet marketing possible, including their local multiple listing service (MLS). We wanted to give home sellers and FSBO sellers an alternative to high commission realtors without using inexperienced FSBO services or going at it alone with the deck stacked against them. Whether you just need marketing help, your home listed in the MLS, of full service contract to close assistance, we have a flat fee Addvantage plan that can help you.
As a FSBO if you don’t mind dealing with buyers, Realtors, showings & contracts, we encourage you to go for it. But consider one of our Flat Fee real estate services for your forward thinking plan and consider us at Colorado Discount Realty your partners in getting your home sold.
We call it Real Estate by Your Rules.
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