Make Your Argument Against FSBO’s

In a market as hot as ours, selling a home should be as easy as putting a sign in your yard and waiting for offers to come in – right???  That seems to be a common thought among many home sellers – particularly those who are needing to net the maximum amount from their sale and are looking for all advantages to make the most money possible (and what better way to start than to eliminate 6% right from the beginning by selling without representation?).  Obviously we know better.  You know how much work is involved.  You know that NAR studies prove that comparable FSBO’s sell for ~ 7-13% less than homes represented by a Realtor (depending on price and location).  You know the value of the service you provide.  But are you doing a good job of letting your clients know that?. 

If you don’t already have this, why not put your service model in writing?  Have a defined description of why the service you provide is not only better than your competitors, but is also persuasive enough to make any potential seller realize that selling without representation is a losing proposition?  I’m sure you can come up with even more reasons than this, but this article below from Realtor.com is a good start.  It gives 5 compelling factors (listed below) that sellers likely don’t understand or are not giving full consideration to when attempting to sell on their own.  Certainly you can add to this, but I believe a drawn out, then well-executed strategy, will help your clients immediately recognize the benefit of your service.

1.      Marketing your home isn’t as easy as you think

2.      Homes for sale by owner could be priced wrong

3.      You could underestimate (or over estimate) how much money to spend on curb appeal

4.      Showings are a drag

5.      Preparing your own paperwork can be tricky

http://www.realtor.com/advice/sell/why-fsbo-sales-fail/  (scroll to bottom of page)

The bond market continues its upward swing (lowering rates).  Since July 6th, the bonds are up almost 125 basis points.  I’ve been able to lock a few clients in recently at 3.75% on conventional 30 year fixed and 3.25% on FHA 30 year fixed.  So low rates are certainly still favorable for buyers right now.