Sell It Yourself
Can you explain why it’s smarter for a potential home seller to list with you, a real estate agent, as opposed to attempting a for-sale-by-owner (FSBO) deal? Showing the FSBO the value you bring to the transaction may be much easier than you realize.
Many real estate experts thought the Internet would result in more people being able to successfully sell their home without a real estate agent.
The exact opposite has happened. According to research from the National Association of Realtors’ latest Profile of Home Buyers and Sellers, FSBOs accounted for 10 percent of sales in 2011, down from 14 percent in 2003 and 2004.
Nearly half of FSBO sales were situations where the sellers already knew the buyers. Only 6 percent of 2011 sales were FSBO transactions in which the seller did not know the buyer.
Here are some of the key factors that deter most homeowners from selling without an agent.
1. The decline of print advertising as a major lead generator
In the past, newspaper ads would produce a fair number of calls on FSBOs. Today, a three-line ad in the local newspaper has little chance of competing with the wide array of information online, including video, color photos, 360-degree virtual tours, and a wealth of community and lifestyle data.
2. Buyers seek rich content
IDX and VOW solutions, Realtor.com, Trulia and Zillow provide access to virtually all the listings in most market areas. Most buyers comb these major sites simply because it’s more efficient than searching for single properties.
3. Instant gratification
A third problem for FSBOs is that people who surf the Web usually are seeking instant gratification. In fact, most visitors will only visit a website once and stay for 15-30 seconds. If the FSBO has no strategy for capturing the lead’s contact information or for immediately following up, the lead moves on to the next website. Even if the Web lead does contact the FSBO, unless the buyer gets back to the FSBO quickly, that lead is gone.
4. Buyers want the savings
Even for those who do search for FSBOs, most buyers automatically deduct 6 percent from the sales price because they want the savings in their pockets, not the seller’s. The result is that many FSBOs end up selling for up to 20 percent less on average as compared with sellers who hire a Realtor.
5. The needle-in-the-haystack effect
A major challenge for FSBOs is the needle-in-the-haystack nature of the Web. There are millions of websites including the hundreds of thousands of company and agent sites. Without search engine optimization, meta tags and a host of other branding strategies to achieve high Web placement, the probability of the Web buyer finding the FSBO’s single listing online is small.
Of course, the buyer could post on sites such as ForSalebyOwner.com, ByOwnerMLS, or utilize the “Make Me Move” feature on Zillow. The challenge is that unless the buyer specifically wants to purchase a FSBO, it’s much more efficient to search on the brokerage or MLS sites.
The FSBO could also put his home on Craigslist. There are two challenges, however. First, the FSBO has to repost the ad regularly for it to appear near the top where it can be found. Second, there have been so many rental scams and unsavory people using that site to identify targets for possible criminal activity that listing there could be a major safety issue.
6. Web leads are reluctant to share contact information
Another issue FSBOs must face is that most Web buyers are reluctant to provide contact information to a stranger, especially during the search process. Instead, buyers identify homes they want to see and then normally contact a single agent who can show them everything they want to see, not just a single home.
7. Availability for showings
Because FSBOs don’t have lockboxes, that means the FSBO will need to be present for every showing. There are numerous challenges with this situation, the most important of which is safety. Is the person who wants to see your house legitimate or not? Even if you accept an offer from a potential buyer, how do you know whether the person meets the income and credit requirements to close the deal?
8. The proof is in the pudding
Here’s a great closing question for sellers who believe that becoming a FSBO is a smart move. Did you know that Colby Sambrotto, founder of ForSalebyOwner.com, which is one of the most popular and robust FSBO sites on the Web, ended up listing his home with an agent AND paying a full commission?
If he couldn’t get the job done for himself using his website, how effective do you think this approach will be in getting your home sold for the highest possible price in the shortest amount of time?
The climate has never been better for prospecting FSBOs. If you haven’t considered adding this valuable niche to your business, there’s no better time than right now.
SEE BELOW TO RECEIVE INFORMATION ABOUT OUR FOR SALE BY OWNER PROGRAM
“Adrienne was very in tune to my desires to sell my property. I was losing money on it and even though I didn’t do a short sale, she was very much prepared in advising me of all of my options. We sold the property for what I was hoping to get for it and the process was smooth and as painless as possible. She was always available to answer my questions and I couldn’t have had a more professional team helping me out.”
“Team Lally are great. I have not had the chance to buy a house yet but I know that whenever we walk in the office we are considered not only a valued customer but as family. I am lucky to have them on my side.”
“When my husband and I began working with Team Lally, we thought we were in an impossible situation. We had been working with our then current realtor for more than a year and to no avail. The short sale on our condo proved to be too much for her. Three failed contracts later, we were finally referred to Team Lally. At this point in the process, we were very disappointed and a skeptical.To our surprise we were greeted with smiling faces and reassuring words by Adrienne Lally and Attilio Leonardi, however, I still remained skeptical. Then we were introduced to Howard, an Agent with Team Lally. From the start he was professional and extremely efficient and patient. He worked day and night and made me feel we were Team Lally’s only clients. I would honestly have so much anxiety with our short sale and yet every time I spoke with Howard I was put at ease. It took six months to close, but it was to no fault of our Realtors but due to our Mortgage Company (GreenTree) dragging their feet and playing hardball. The entire process was made easy with Team Lally steering us. Howard’s communication and explanations in all of this is what made it straightforward. Whether via email or telephone, I felt informed of the whole process. Again, I honestly at one point thought we were his only clients. Thank you Howard. Team Lally is EXCELLENT! They used every avenue to promote our property, from the internet like Zillow and Trulia to mailings to magazines. They took a disappointing …
“I am a retired, disabled veteran. In the summer of 2013, I faced significant financial, professional, and personal challenges. At the center of these challenges was the fact that my home was under water and I could not continue making payments. I had previously worked with three other real estate agents on island (two from major companies and one independent) and could not better my situation. Facing the brink of foreclosure and financial ruin, I called Team Lally on a recommendation from a friend. From that moment forward, I was able to take comfort in the belief that these people would achieve the best possible outcomes for my circumstance. While all Team Lally members went above and beyond to help me, I would like to highlight a few.Adrienne Lally, President/Team Lally – Simply the best real estate professional I have ever worked with. Within 36 hours of first contact, she had personally assessed my home and situation, and developed a cogent, strategic plan for presentation, foreclosure avoidance, and best-pricing. Her knowledge of the Hawaii real estate market is beyond reproach and she repeatedly took the time to answer every question and concern that I had. As a veteran herself, she offered unique insight on my circumstance and developed a rapport I found with no other real estate agent. Most importantly, she maintained consistent contact throughout the process via weekly updates, even after I left the islands. I was never just a number to Adrienne Lally. If I am e…
“Adrienne Lally and the team are absolutely wonderful. Adrienne exudes excellence and knowledge in the real estate field. Customer service and great communication skills are just a few of the qualities that Adrienne and the team take pride in. She looks out for the best interest of her clients and makes sure that the buying and selling process is easy and pain free! I would strongly recommend Adrienne and the team for the purchase or sale of your Hawaii home or condo.”
“Team Lally did a fantastic job in every aspect of my home buying process. Adrienne was always quick to respond to any and every question I could come up with. She and her team did every thing they could to make sure my home buying process was successful. Adrienne also proved to be a great resource for recommending local contractors after I bought the house and needed a bit of work done to it.”
“The pros of Team Lally simply cannot be surprised in the real estate world. They have done and seen it all. I was astounded and relieved to see them address all my concerns and even accurately predict what would happen next. The mark of a true professional is to be so in tune with your chosen field that to a lay person like me, it looks like magic!”
“We interviewed three different Realtors and we Team Lally were incredibly organized and impressive. We hired them to help us find a home in Hawaii. They had such great local knowledge and incredibly responsive. True Professionals!! Unfortunately, my job situation changed and we ended up not buying a home, but if we are coming back we know who we would work with. Team Lally is #1 in our book!”
“Team Lally helped me with the shortsale of an underwater, upsidedown mortgage. I am so glad I found them. Thanks.”
“Team-Lally Rocks! It’s great to be considered a part of the Team-Lally family! After 13 years away from Hawaii, and looking for a house on the Ewa plain, we hooked up with a Team Lally realtor who was showing a house that we visited. Throughout the buying process, the knowledgeable staff addressed any problems that we encountered and concerns that we raised. We left the process feeling that our interests were properly represented and protected. This is the very thing that we expect from my realtor and weren’t disappointed. Our relationship didn’t end there. Through customer appreciation events (great food and prizes), newsletters and other resources, we stay connected. Also, if we have a question about market trends or need a contact for everything from a mortgage broker for refinancing or a plumber, we send an email or pick up a phone for a quick response—in practice, this team is really a network of businesses that work well together to meet the many needs of the customer. This is what the relationship between customer and realtor should look like, but seldom does. If we buy or sell again, we know who we’re calling—Team Lally! Joe & Tammy Waligura.”