If you are considering a For Sale By Owner (FSBO) strategy to sell your existing home, Please consider the following:
Fact: Over 87% of FSBOs will end up selling through a Realtors® anyway
Fact: 95% of qualified buyers are working with an agent already (most buyers seek agents to find homes)
Fact: Many of your potential buyers expect you to discount your home and in the end you end up with the same amount minus the expertise of an agent
Fact: Over 50% of FSBO sales fail to close (financing, bad contracts, misunderstandings, more emotion and lack of knowledge)
Fact: You may be approached buy several “lease with option to buy” or “unqualified buyers” “security issues”
Fact: I can sell your home better, faster and for significantly more money than you can, even with my commission included
You should list your home with me because I do business completely differently from all other agents and it virtually guarantees 2 things;
1-Your House Will Sell
2-You will end up with significantly more money (bottom Line) than you could get any other way
I answer my phone when people call me 8am – 9pm, seven days a week or I return their calls within that day or the next morning
I will keep you updated weekly at a minimum
If I don’t keep these promises, Fire Me. Contact me at firstname.lastname@example.org or call me at (615) 995-6322
You may be missing out on a marketing campaign geared to selling your property sooner.
More importantly think about this: 95% of pre-screened, qualified buyers are working with one of my many seven thousand, six hundred colleagues.There are around 7,600 licensed Realtors® in the metro Nashville Area (estimate). Most agents work with qualified buyers that have been to loan officers and have pre-approval letters. These qualified buyers are actively looking for a home and most are ready to put in an offer today. You will notice that many people that call you from your FSBO sign are either inquisitive neighbors or people who are dreaming about a home like yours but cannot afford it. Agents run into people like that every day but we help them if we can and sometime make referrals to financial experts that may help improve their credit. Some buyers approach you asking “would you consider a lease with an option to buy”. That’s great if you want to lease your home for a year with the hope that the potential buyer is even somewhat qualified. What if the potential buyer is not qualified? What a waste of your time.
Fact: showing a FSBO property is not a top priority for Realtors®. Showing or including a FSBO would not be an option for obvious reasons.
Homes listed for sale on the MLS (Multiple Listing Service- the software and platform used by professional Realtors®) have been vetted by a trained and licensed Realtor®; disclosures and other documents are filled out correctly. Realtors® adhere to a code of conduct and we are governed by National Association of Realtors (NAR) ethics rules. Showing or calling a FSBO is not even realistic in an agents normal routine. Think about this, a certain percentage of my clients are already linked to my property alert program that sends them an email every morning with homes that meet their needs. The best part of the MLS is that the alerts are automatically sent to prospective buyers but the negative for the FSBO is that your home is not included in that email. Unless our clients happen to be in your neighborhood and drive down your street, you are getting little to no exposure. Remember exposure equals potential buyers.
Think about this, I have many types of buyers and I hand carry many of them through the entire process. I search for them, I help them make the decision about which home meets their needs, I help them find financing, inspectors, and title companies.
NOTE: No FSBO’s will be included, you missed another opportunity to be exposed to another client.
Fact: Offering an agent a 3% still does not solve your problem because you have not solved the exposure problem. Your home is not in my sphere of influence so I seldom notice FSBOs and I don’t look in Craig’s list, Zillow, Trulia, Homes.com… I look at the MLS 99% of the time.
Conventional wisdom shows us that most FSBO’s are FSBO’s because the home may be worth less that what the owner originally payed. Most buyers would be afraid to purchase a home that has lost value. Some FSBO owners may be difficult to do business with because they really don’t understand how to properly evaluate their home.
Fact: Placing your home on the MLS does not insure that your home will sell. Selling a home is not as easy as placing a sign or an ad on Craig’s list. A good Realtor may consult with her clients about paint color, the placing of furniture (staging) or the elimination of furniture. Buyers are more likely to confide in their Realtor as to why they don’t like a particular home and might even use us as a sounding board or an actual assistant in decision making. We motivate, encourage, at times we even hold our clients hands as they wait for the counter offers. We negotiate (and I’m good at that) most importantly we close and move the sale of a home forward.
MOST IMPORTANTLY: We do this everyday. We know Real Estate and we sell homes.
The benefit to you the seller is moving your home from the “For Sale” mode to the “Sold” mode faster and at times for more money.
Finally and most importantly, we are professionals who earn our living developing, navigating and negotiating the sale of Real Estate for our loyal customers.
One question? Can you afford to miss out on the synergy of qualified potential buyers? Do you want sell your home faster and for more money? What about strangers that have not been screened calling you at work or leisure? Most of all can you afford to engage in a real estate transaction without our copy-written and carefully-crafted contracts? Remember our Nashville area real-estate contracts are used tens of thousands of times and prove their worthiness everyday.
Are you ready to sell your home?
IMPORTANT: Real Estate agents are not lawyers nor do they practice law but they do sell many homes and they know how to get the job done. Most importantly I know how to get the job done.
What are some of the reasons people sell their homes on their own?
- Some people think that Agents simply put a sign up and then walk away.
Before A Realtor® places her sign, several conversations have transpired and agreements have been signed, research has been done: But before that,
“Affiliate broker candidates must complete sixty (60) hours of real estate education in real estate principles/fundamentals before they take the examination. Proof that the education described above has been completed will be forwarded by the school where the education was completed to PSI. Affiliate brokers licensed after 12/31/04 must have completed the 30-hour “Course for New Affiliates” prior to their license being issued and a letter or certificate of completion of the “Course for New Affiliates” must also be submitted with the license application. The requirements change but you should get the point by now.
Several thousand dollars later MLS Fees, Realtor Fees, Licensing & Testing fees, Realtor® Association Fees…
We are governed by the State of Tennessee and adhere to the code of conduct as Realtors®
(Please note that TREC and NAR are a great value to you the consumer because they insure that all of us Realtors® comply with the laws of the great state of Tennessee and they discipline those of us that fail to earn and maintain the consumer’s trust)
If that is not enough Realtors® are responsible to their Brokers, Managers and fellow Realtors®. Several thousand dollars later, they do not make one cent unless they sell or assist a buyer to a closing of a real estate transaction. In essence that agent also has to know how to market and sell real estate. Finally, when a property is sold they usually get around 25% of the 6% commission (this number varies with brokers and agreements).
So now the agent inputs your information into the Multiple Listing Service and starts the Networking process (contacting and discussing your listing with hundreds of agents) mentioning it at meetings, hosting broker tours, open houses and in my case placing it in all of our web sites and affiliate feeder sites, follow-up to make sure that your house appears on Facebook, YouTube, Google… But wait there’s more—
The agent finds qualified buyers (we partner with mortgage brokers, banks and other lending institutions to insure that they are qualified to buy your home) brings them to see your home and answers questions. Then, we give you the seller feedback about your property. We diplomatically tell you what might be wrong with your home or price. Yes, sometimes we endure your harsh words concerning those customer comments.
Realtors® are also responsible for correctly filling out purchase agreements and disclosures. When the buyer is represented by another agent we very carefully negotiate in your best interest. We rejoice along with you once the offer is accepted. We also worry with you during inspections. Should the customer decide to continue with the sale we wait and wonder with you hoping that they will get funding and not get lost in the lending shuffle?
Finally, we celebrate with you when you close on your home and the sale is final.
For the purpose of brevity I will leave out what we do when things go wrong or the many other functions that we carry out in the background.
- Sellers sometimes feel that the 6% commission is expensive. They don’t see the value.
The standard commission is 6% in Nashville TN. Please understand that in most cases that means 3% for each broker. The split between the broker and agent varies, but for the sake of simplicity, let’s say that the agent gets 1/2. So that 3% is now divided 50/50 between the agent and the broker. Then the agent usually has to pay dues to the broker, the State of Tennessee, National Association of Realtors… You get the picture? We then pay our office expenses, auto insurance… We live off the 1% that is usually left. High Commission?
Here is the value you receive:
- A partner that cares about the sale of your home.
- A trusted professional that screens and qualifies potential buyers.
- A knowledgeable experienced professional that understands the purchase agreement and knows how to negotiate on your behalf.
- Someone that knows where to find your buyer sooner, through proven advertising and marketing techniques.
- Some home owners can’t afford the commission because the loan amount plus the commission is greater than the market value.
Some Sellers owe too much on their mortgage and that is regrettable. There are many options that are available such as Owner financing… that may allow a seller to sell their home differently. Contact us for many alternative strategies. Just like doctors we have feelings and care about people enough to help a person in need that may include restructuring my commission.
- There are loan officers, lawyers or seasoned sales people that have sold homes before.
These people have the know-how and can sell their own house, but I would even caution them as well. Surgeons hardly ever operate on people they know. Why? Because when you are involved with the sale you tend to take comments and negotiations personally. I have seen people negotiate the sale of their home and miss the selling signs and even infuriate potential buyers that would have paid more with the right negotiator, like me (shameless plug)
Abraham Lincoln Had It Right – “He who represents himself has a fool for a client”
Many agents chose to hire other agents because our home is not a transaction, it is personal and filled with memories and that can cause problems at the negotiation table. One more note some people should not be in sales and yes that is ultimately what I am. I have and continue to study the art of selling and marketing.
- I have met sellers that have a very unrealistic view of the value or price point of their home.
There is an old saying in the real estate business- One man’s mansion is another man’s shack. Most sellers have a high opinion of their home and if they are a “do-it-your-self”, they have a high opinion of their handiwork as well. Sellers almost always say” I’m not going to give my home away”.
Buyers think that the seller’s price is unrealistic and sometimes they don’t understand the value of your home.
Sellers think that they are giving the home away.
As real estate consultants we can show you the fair market value of your home and can effectively bring you buyers and show them that value using factual comparisons that they will usually accept.
- Finally, some people just don’t like paying commissions to anybody.
I can live with that, but I can sell your home for significantly more than you.