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
“When it comes to Team Work, Team Lally is the best!. Great communication and customer service. Adrianne and Attilio kept us updated during the entire process of selling our home. The entire helped us through the process and gave us great advice. Thank you Team Lally!!!”
“As first-time home buyers, I couldn’t have asked for a better realty than Team-Lally!Three months prior to moving to Hawaii from the mainland, we began our search online by looking at pictures and viewing videos of current listings in Kaneohe and Kailua. We were so fortunate to have Team Lally as our agent. Team Lally was knowledgeable, patient, and honest; they even went out of their way to record videos of a few homes. Via e-mail and over the phone, they addressed all my questions and concerns. By the time we arrived, we were so well prepared and closed on the house we wanted in no time! If we buy or sell again, we are definitely calling Team Lally”
“Adrienne and her team helped us find our condo in Makakilo, HI. We were very happy with all of their on going help after purchase like referrals and yearly associate parties. Go Team Lally!”
“Team Lally sold a condo-hotel unit for us in Hawaii. We live in California and did not actually know or observe what was happening with the sale. They took care of the showings, finding buyers (3) and negotiating with the bank. They took care of all of the paperwork – sending us what we needed and arranging for docusign whenever possible. We were kept in the loop as much as possible and as much as we needed to be. It was a very stressful time for us and they (patiently) explained procedures to us, since we often did not know what was necessary or what the next step was. Team Lally was very professional in all dealings with us and we are very grateful for their consideration of us as stressed absentee sellers and for negotiating a great deal for us.”
“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”
“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.”
“I walked away from my property three years ago and assumed that it would get foreclosed upon or just disappear….Three years later I was contacted by a tenant that was being rented the condo from a company that was operating illegally and claimed to have ownership of it….I contacted Team Lally and they were able to navigate these very difficult waters: me not having paid my mortgage for three years, a company claiming ownership, the condo association not happy because they were not paid for three years…Team Lally worked through all of this to complete a short sale of the property and I paid virtually nothing…I worked with other real estate companies in the past and Team Lally blows them away, I would highly recommend them for all your real estate needs”
“Working with Team Lally was fantastic! Celeste helped us to buy a new home and Adrienne and Atillio helped us to sell a home. Team Lally was responsive to all of our needs and questions. Team Lally exceeded our expectations!”
“Adrienne and her team is one of a kind . They have advocated well for me and helped me navigate the scary world of short selling. It was an uncharted territory for me but they”re so keen of putting me at ease by answering all my questions. (redundunt may it seems)with remakable patience. During the whole process I felt confident that somebody in Hawaii is looking out and working hard for my best interest. Now that its over I can truly say that I can enjoy the holiday with peace of mind. More power to you guys…God Bless.. Thank you so much again….”
“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.”