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
Testimonials
“Aloha, My name is Bryon Tucker. My wife and I sold our home via Short Sale with Remax Team Lally. We are very pleased with the sale! I have had the pleasure of working with Adrienne & Attilio for the past several years. They work hard and educate themselves. There is nobody in this business that works harder, studies more, and has the experience to sell your home.! And their marketing systems is second to none!! They make it easy….they handle the banks for you…so you don’t have to! When it comes to selling your home in distress, do what I did! Sell your home with Remax Team Lally! Yay!!!!”
“We worked with Cathy from Team Lally during the purchase of our new house, and it was great. She was very professional, knowledgeable, responsive and fun to work with. We found a great house that we love and moved in ahead of the estimated closing date. Best of all, we paid less than the asking price, and her recommended offer was right on point with the VA appraisal. Overall, it was a great experience, and I would recommend Cathy and Team Lally to anyone looking for a house.”
“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.”
“To put it simply…Team Lally never gave up! The short sale of our home was dragging on for more than a year! With Team Lally it was completely over in 4 months. Thank you Team Lally.”
“Last year my wife and I came to Hawaii for a quick to buy a house for our impending move to the islands. Cherrie worked hard and helped us to get under contrsct and then close the deal. Hats off to the Lally Team”
“Adrienne, Attilio, and Howard worked hard and patiently to get my condo sold. Despite working through hours where it was difficult to reach me in Boston. Their phone calls, emails, and use of the docusign system set the stage for the sale in a tough market. Thanks once again for your helpfulness and professionalism.”
“My husband used to work with one of the agents and we were put on their mailing list. We have really enjoyed all the information that we receive. “
“Aloha! Calen at Team Lally has worked with my husband and I since day 1 of our search for our home. She was always so prompt with emails, house listings and also giving us an unbiased and honest opinion. She’s extremely knowledgeable about real estate and was constantly patient if we had any questions. She would always make sure that we could get the most bout of our money and would constantly be negotiating for us with our best interests at heart. She was on top of things and I didn’t have to go hunting for her or feel alone in this process. Our experience with working with Calen at Team Lally has been such a pleasant and personal experience that anyone should be blessed with! Elizabeth and Justin Munson”
“Mrs Lally was very aggressive with advertising and putting our home out there. She sold our house 5 days after listing. Wow! We were excited and very impressed with her quick sale. We will definetly use her services again when we sell our next home.”
“Adrienne Lally and Attilio Leonardi of Team Lally are great! They take the time to get to know their clients needs, making the buying/selling process that much easier. I would definately refer my family, friends and clients to Team Lally and so should you!”