Why For Sale By Owner Is The Most Unenviable Job In The World

Dated: August 2 2018

Views: 232

"FSBOs" or homeowners who decide to sell their homes themselves, have the worst job(s) in the world... For reals. Here are the myriad hats a FSBO has to wear while selling their own home:

Real Estate Agent

Lawyer (ensuring the contract is satisfactory)

Negotiator (negotiating against the Buyer's Agent and Buyers)

Salesperson (trying to get Buyers to choose their house over anything else)

Marketing (competing in the ever-expanding marketplace and online real estate store to make sure the Buyer and Buyer's Agent finds THEIR house instead one of the other 7000 homes currently for sale)

Inspector (Knowing what items on a 50+ page inspection report are most important to a Buyer and Buyer's agent then working out the details)

Auditor (Having paperwork, disclosure statements, Lead-Based Paint pamphlets, recent repairs, and estimated net proceeds in order)

......................

I get it... It seems simple enough from the outside. FSBOs are probably selling their homes themselves to try to save a commission, or at the very least, a partial commission to a real estate agent. Here's the problem: There are 3 types of Buyers.

Buyers who need a house ASAP: 97% of these home shoppers are already working with a Buyer's Agent whose services are 100% free to the Buyer and who can guide them therough the complicated and urgent process of home-buying.

Looky-Loos: They just like wasting your time and LOOKING at properties for fun. Yes, these people actually exist...

Investors: They target FSBOs and make lowball offers

 That means, in order to get buyers in and Buyer's Agents to show their home, they must offer a partial commission to the Buyer's Agent.

Think about this for a minute: A FSBO is PAYING a Buyer's Agent a commission to negotiate AGAINST them throughout the real estate transaction (Price, contract, terms, inspections, and appraisal). That's kind of like me hiring my wife a divorce attorney to represent her against me in court.  

If a FSBO is NOT willing to pay a partial (Buyer's agent) commission, they are setting themselves up to lose. Buyer's agents will typically only work with a FSBO if it is a last resort, meaning they've scoured the MLS for non-FSBO homes and absolutely NONE of the currently available 7763 homes fit their buyer's needs, THEN will they look at FSBOs. Of the FSBOS, they will likely reach out to ask if the FSBO is willing to pay a Buyer's Agent commission, and if not, the cost is then passed onto the Buyer via a Buyer's Brokerage Agreement. Either way, FSBOs should create INCENTIVE to both Buyers and Buyer's Agents to show and sell their house.


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