Understanding the FSBO versus Realtor Question

Posted on : 28-01-2010 | By : admin | In : Credit Cards

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Fees for real estate brokers can be a substantial portion of overall costs, and especially during a buyer’s market like the one we’re in now, homeowners should weigh their options regarding For Sale By Owner – nicknamed FSBO and pronounced “fizz-bo” as a cost-cutting alternative. But before choosing which way to go, it always helps to consider these four practical points. #1 There is More Value at Stake Beyond the Commission Selling yourself means a commitment of time and energy, and time is money. So decide ahead of time whether you are prepared to sacrifice your valuable time – and whether it is worth it compared to what you would pay a Realtor to set appointment, deal with clients, and field phone calls about your listing. #2 You May Still Have to Pay a Partial Fee As a FSBO, if a Realtor brings a qualified buyer and a successful purchase offer you will still need to pay a finder’s fee. The cost could be approximately 3 percent of the sales price, and that should be figured into your preliminary calculations before you decide whether to do a FSBO or hire a pro. Of course you can refuse to work with Realtors, but you may be handicapping your marketing efforts since they have access to most of the qualified and eager homebuyers. #3 Negotiators are Worth their Fees Negotiating is one of the most compelling reasons to hire a Realtor. The value of a professional negotiator is underscored by the fact that many experienced and highly trained real estate professionals still hire other Realtors to represent them when they sell their own homes. Third party negotiations are generally more successful, more objective, and more readily accepted by buyers – which means they accomplish better results in terms of higher prices and more favorable terms. #4 Going the FSBO Route Doesn’t Mean You Have to Go it Alone You can pay a small fee to include your listing in the Realtor MLS database, for example, and you can also cooperate with professional real estate agents and pay them a finder’s fee for helping sell your home. You can even hire a staging company to set up your listing so it shows like a model home, and there are even services to help you manage your appointments and marketing campaigns. Whether you go it alone or avail yourself of the services of a professional property broker will depend on your particular circumstances as well as your own level of experience. Remember that you can always change your mind and go FSBO after trying a Realtor – or hire a Realtor after experimenting with the do-it-yourself approach.