WHAT EVERY FOR SALE BY OWNER SHOULD KNOW
Mr. and Mrs. FSBO, as a licensed REALTOR in Georgia, I feel an obligation to share with you these three things every FSBO should know.
First, were you aware that sellers have been paying Realtors full commission to sell their homes for over 200 years? In other words, that’s the only true constant in real estate for over 200 years. Sellers just like you employing real estate agents like myself.
Would you agree that nothing lasts that long in our society unless there is value there?
If I could show what that value is, wouldn’t it make sense for you to invest some time to chat with me?
Were you aware that 7 out of 10 for sale by owners eventually end up choosing a broker, if not for themselves, then at least to help out their buyer: sometimes when it’s too late? In other words, if the timing of the sale doesn’t work out for both parties, it ends up costing the seller extra time and money they usually can’t afford to lose.
Would you agree that timing is important in making your move?
If I could show you how to avoid some of the common pitfalls of bad timing, would that be of value to you? I’d be honored to share my knowledge with you.
As a REALTOR, I can most often sell your house for more money than you can; and I most often sell it quicker than you can.
Assuming this fact is also true, and I could show you how to get the most money for your home in the shortest time, would that be worth a few minutes of your time right now?
OK. Again, assuming that these 3 facts are true, there are 6 obvious reasons why we’ve been around for over 200 years; 7 out of 10 for sale by owners eventually choose a broker; and we sell homes quicker and for more money.
Now, why is it that serious buyers only shop FSBOs to save the same commission you want to save? It’s because the smallest selection of available properties are offered by FSBOs.
Here’s an illustration of what’s at work here. Check the classified section of the Sunday, Macon Telegraph and count up the entire FSBO owner ads and then separately count up the entire Real Estate Broker adds.
Let’s play real estate. You’re a serious buyer. You know that if you call any broker, you will get these free services: free qualifying information; free access to all listed properties;possibly a free meal or two; free chauffeur services (at over $3 a gallon for gas, this is a steal alone); free contract preparation; free negotiating; free transaction follow up; and most likely even a free gift when you close!!!
If you’re a serious buyer, what would be the only logical reason why you’d pass up over 90% of all properties and all these free services; and instead do all the work yourself and limit yourself to just a few properties?
You see everybody pays a commission. Either you pay it to the buyer, take all the risk and do all the work yourself; or you pay it to me and let me take all the risk and do all the work.
Assuming that’s true, what would be your choice at this point?
The law of supply and demand states that the more buyers you have that want something, the more it will usually sell for. Do you agree?
There are approximately 650 realtors in our area. Each of them is working with approximately 10 buyers at any given time. That means these REALTORS have 6,500 buyer prospects looking, and still it takes us on average 120 days to get sellers their money.
Now, let’s compare. How many prospects are you currently working with?
You see, I’m not saying you won’t be able to sell the house yourself. Just that with 6,500 buyer prospects, odds are that I can get it sold quicker and for more money?
Let me ask you, if we could agree on a price, would you consider letting me handle it for you? Remember, I take all the risks and incur all the expenses.
I have a question for you. What does a buyer look like? In other words, if someone came in today and said they wanted to buy your home, would you sell it to them? What if they couldn’t afford it?
It’s a scary thought, isn’t it? How would you qualify the buyer and insure the probability of the buyer being able to close on time?
According to the National Association of Realtors, 70% of the people looking can’t buy your house. Their equity is frozen in their current home. Would you take your home off the market on the chance they could sell their home?
15% prefer to rent. Why are they looking? It’s fun! They’re dreaming. Looking for decorating tips. Just nosy. Who knows? 11% can’t afford it. Bad credit. Low income. Whatever. Only 4% of lookers are actually ready, willing and able to buy today.
That’s why we’ve been around for over 200 years; 7 out of 10 eventually use us; and we can sell it quicker and for more money. I have been trained to separate the lookers from the buyers, and to show your home only to those who are ready, willing and able.
Do you believe that time is money? If you agree that, with our sheer numbers, the odds are we can sell it quicker; then the longer it takes you to sell, the more money you potentially lose.
Let me show you a scenario, and I realize it’s a “worst case” scenario, but here’s what might happen the longer it takes to sell. These things might not happen, but they could, and if they do, here’s what it potentially could cost you.
Interest rates projected to go up. (Fewer buyers are able to afford the payment.)
New home might cost more.
Your home value declines. ( More competition: drives down demands.)
Lose time speculating. (Potentially miss out on qualified buyers for your home.)
Vacant house. (Possible trespassing/damages/theft, repair(s) expense, double house payments and/or taxes, insurance and utilities.)
The 5th reason we’ve been around for 200 years… is that marketing services cause exposure; exposure attracts more prospective buyers; and more buyers equals more money to you.
Let’s get together and compare marketing services, and see who has the best odds of finding the best buyer for your home. How will you attract relocating buyers, buyers already working with an agent and/or local buyers?
I like to use the doctor analogy here. You see there’s a reason why a doctor won’t operate on members of his or her own family.
When it comes time to negotiate with a buyer, I’ve been trained to act as an emotional buffer, to avoid appearing too anxious in following up with a buyer.
I can be honest with you about your situation, a friend probably won’t be able to be as honest with you as I would.
SUMMARY So those are the 6 reasons why… 200 years… 7 out of 10… quicker and for more money.
Please give me a call and let’s set-up a time to discuss and go through the Highest Price Analysis. We can take it a step further and look at what you would net in your pocket at your asking price.
In some cases Sellers have been able to actually net more, than they would have selling it on their own!
Thank you for investing your time to review this valuable material. I am looking forward to the opportunity of selling your home at the “highest price possible and within your desired timeframe!”
Wendy Ruzic, Associate Broker