F.S.B.O. Frequently Asked Questions
Why not sell my house by myself?
Why should I pay an agent 1000's of dollars to sell my property?
What is the difference between selling FSBO and with an agent?
What does a real estate agent get paid for?
Why not sell my house by myself?
Good question. Doing some things yourself isn't a bad thing. Fixing your car, for example, provides good examples. Pumping the fuel in the car, changing the windshield wipers, airing up the tires, and washing your car manually are good things. These are things that almost anybody can do without failure, and even if they did not get it right the first time, they could go back and fix it right the second time. Doing little things yourself that do not require an experienced mechanic can save you time and money. But when you're talking about overhauling the engine or replacing parts in the car, especially if the car is a luxury vehicle then it is BEST to hire an expert mechanic to do it for you.... It is the same thing with real estate. When you have a house, which is worth many times more than the value of your car, it is important to have an experienced agent on your side. Can you sell it yourself? Absolutely. But a better question is, "Can you sell it yourself and get as much as a professional can?" Not to mention all the work involved in selling a house, paperwork, liability, etc. Consider this, "The National Association of Realtors(R) did a statistical analysis of home sales in 2005 and concluded that, on average, Realtors(R) were able to get 16 percent more than FSBO's." So, should you sell it yourself? Well, considering the statistics, the time you invest yourself rather than hiring an agent to do the work for you, and considering the time an agent can save you by selling it quicker, the answer should be clear. Agents have a wealth of experience and knowledge that surpasses what a FSBO has. And it is the application of these professional qualities that make the difference. The below image is a visual representation of why selling FSBO limits the potential buyers that a seller can reach. Most buyers use agents to represent them in a real estate transaction. A majority of buyers that choose to not be represented by an agent either want to save the fees of an agent and/or want to buy the house at a bargain. These unrepresented buyers (mostly investors) expect to buy for less, since they also are not using an agent. With this being the situation, selling FSBO not only puts the seller at a disadvantage in reaching the buyers who are willing to pay more (first-time homebuyers) but also puts them in the position of having to sell to someone who expects some or all of the discount the seller is planning on keeping by not using an agent.
Why should I pay an agent 1000's of dollars to sell my property?
Because you will likely save more than what you give the agent as well as have all the work that is done for you. A more accurate way of viewing the service fee is as a "Potential Wage". When you agree on commission, you are proposing that if the property sells, the agent will be given a wage for the work that they did on the property. Agents also reach into their wallets to pay for the advertising and marketing of a property. Also half of the service usually goes to the other agent who brings you a buyer. A good agent should end up getting you more than selling FSBO. If you count the numbers, make sure you're using the right formula, and you'll soon realize that selling FSBO ends up costing you more than you initially expected to save. Selling FSBO takes on certain risks when not selling with an experienced real estate agent. A real estate agent who knows the ins and outs of selling can reduce the likelihood of wasted time and money in the home selling process.
What is the difference between selling FSBO and with an agent?
FSBO stands for For Sale By Owner. An agents expertise that will get you more for your house. Quicker sale. Easier sale. Less liability risks. Assistance. Someone to do the work for you. The list goes on...
What does a real estate agent get paid for?
A real estate agent is going to do a lot of work for you between listing the house for sale and the final sale of the house. Even before then your real estate agent will be spending time advising you on certain things to do prior to listing. Here are a few of the main jobs of a real estate agent:
- Measure your house's exterior dimensions
- Measure the rooms in the inside of the house
- Advise on staging your home for sale
- Take pictures of your property
- Gather data on the house and current market
- Advise you on a selling range for similar houses in the area (CMA)
- Put your house in the MLS (Multiple Listing Service)
- Market your house through online marketing, mouth-to-mouth advertising, telling current clients of new listings that are pertinent to their needs.
- Put a professional sign up in your yard
- Put a secure key box on your home
- As people want to see the house, they will schedule appointments to see the house
- Follow up with all viewers.
- Hold open houses for vacant properties (which includes advertising for the open house, holding the open house, and ordering any refreshments)
- Presenting offers
- Screening possible purchaser's to make sure they can even afford the house so they don't waste your time and money
- Negotiate the contract
- Advise on the good and bad parts of a contract
- Accepts the buyer's holding deposit and places it into a non-interest bearing escrow account
- Handles paperwork dealing with the repairs on the property
- Handles negotiations if and when inspections are unsatisfactory
- Handles negotiations if and when the appraisal is less than the offer price
- Places the property back on the market if the buyer cannot follow through with the purchase
- Appears at closing with keys and necessary paperwork
As you can see, some of these jobs can multiply. The real estate agent may have three open houses before the house sales. They may go through two buyers before the house sales. There may be six purchase agreements that are presented before you accept one. The list goes on. Hopefully, your real estate agent can make the process feel as simple as possible with the least amount of problems. Ultimately the agent will work hours and hours before his commission is received, and the best agents have earned you a return on your commission investment.
List with Engle Realty today and see the difference!
