I recently wrote a post titled "Honey, Let's Not Use a Realtor!" and was inspired by a comment left by Karen Feltman to write one more post about FSBO's. No, I don't want to beat a dead horse but I think this is really an AH HA moment. Thank you Karen, your comment spoke volumes to me about a FSBO giving a gift of $25,000 to a buyer. Now that is generous beyond belief! Karen has a different take on it than I do, but she has a very personal reason to feel so. Her house was instantly devalued by $25,000 while the buyer got a gift of $25,000
This is what Karen said:
"FSBOs do quite well here, but then again, they are not truly FSBO. There are several brokerages that assist the seller for a fee with marketing including professional photos and staging services, all at an a-la-carte price. In a seller's market, they are successful, but the cost is the bad taste left in the neighborhood. Because of "saving the fee", a home just like mine sold for $25,000 less than the market and immediately depreciated my home and all the homes around it for the next 6 months."
As a real estate agent I can't speak to exact commissions, but if you think about it, the dollar amount the seller would have had to pay in commissions for a market value full price offer would not have been the full $25,000. So, in my head, they gave the money away to the buyer.
What a gift!!!! No so much to the existing home owners who lost property value, but hey, the seller moved away and won't be dealing with an angry neighborhood, toilet papered trees, drive by eggings.
No sour grapes here, the buyer got the deal of the century, the seller must have been pleased with what they got or they would have listed higher in the first place. Or did they even realize what they had done to themselves? I wonder. Was it a faux pas or a genius marketing tool by a very wealthy seller who wanted to make someones day?
To FSBO or not to FSBO, that is the question.
My advice to anyone who wants to sell their own home is simple. Pay the money and have your home appraised by a LOCAL, PROFESSIONAL appraiser. Study your local real estate market so that you don't either over price or under price. Believe me, if I represent a buyer and KNOW the home is underpriced for local market values (and I will know) I will advice my buyers to snatch it up and NOT ever say a word to the seller.
And why would I do that? Why would I be so cruel and heartless to the FSBO seller? Because I don't work for them, because my responsibility to my buyer is easy, help them to get the home they want at the best price possible. And $25,000 under market value is, in my opinion, doing my job!
Of course if I represent a seller, it is my job to get them the best price possible for their home, in the shortest amount of time possible. I do have other words of advice such as hiring a professional photographer, making sure your home is available to show at all times, make sure you are using all the forms required to be used in your area.
There are far more things that I do for my listings, if you want to know more just give me a call at 203.460.1775.
Andrea Swiedler, Realtor, Southern Litchfield County Real Estate
2017 President, Greater New Milford Board of Realtors
2017 Connecticut Magazine 5 Star Realtor
Coldwell Banker Residential Brokerage
Litchfield County Regional Office,375 Danbury Rd, New Milford, CT 06776
© Andrea Swiedler 2009 - 2017
Always do right. This will gratify some people and astonish the rest. - Mark Twain