Quote:
Originally Posted by Martin Smith
One problem with FSBOs is that the potential buyers' agents are going to be less likely to show your home to their clients.
....I had one agent friend go so far as to tell me they will blackball a FSBO, and not show it to thier clients at all unless the client finds is and asks to see it.
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When someone decides to go the FSBO route, they've decided that they don't want to pay a commission. Many FSBOs are openly hostile towards realtors.
So here's a scenario for you, a REAL LIVE ONE: I am showing a nice couple 5 homes on Saturday. I know exactly what they are looking for, what price range, what style of house, what area. I need to book 5 showings @ about 30 minutes each. I go on MLS, there are currently 13 houses that fit the bill. It'll take me 15 minutes to touch base with the listing agents and book the showings. I know 3 of those agents, and I know they'll warn me of any potential issues ("feedback has been that the lack of an ensuite is an issue", "the basement does have some water" etc) I don't care if the buying commission is 2, 2.5 or 3%... I just want to find them a perfect house. There are plenty to chose from.
Can I really justify scouring Kijiji and other places for FSBOs, then calling sellers who generally want NOTHING to do with realtors, and who generally won't want to pay commission? If they DO want to pay commission, I go to there house, assess it, and 60% of the time find it has issues or pricing that make it unsuitable for my clients so my time has just been WASTED. And the rare one that's worth me showing, I have to do a listing agreement and other paperwork that use up more TIME. And *if* I do end up showing the house, the FSBO seller generally wants to be there, making it awkward to talk openly with my clients, and sometimes the seller will decide to give you a "grand tour" and the whole history, which can take AGES. Then you are running late for your next appointments, inconveniencing the next homeowners and making a bad impression.
TIME is pretty precious when you work 60-70 hrs a week. That's TIME that's better spent with clients who value your service, not ones who have demonstrated that they DON'T see value in what you do.
So. It's 1215 here. I have to book 5 showings for tomorrow. What do you think I should do? Spend 4-5 hours chasing FSBOs, or taking 15 minutes to book showings that I KNOW will be worthwhile, then spending the rest of the afternoon calling past clients to see how they like their homes, and maybe seeing if they know anyone looking to buys or sell.
What would you do?
See, a lot of people think aversion to FSBOs is about commission. It's not... it's about TIME and opportunity cost. I am better off at home, on the couch napping with my 10 month old daughter, than I am chasing FSBOs
In fact, I'll go door-knocking in neighborhoods to see if anyone's looking to sell, before I'll call FSBOs. Almost 40% of my income in '09 was from door-knocking, no kidding. 0% was from FSBOs
Quote:
Originally Posted by Martin Smith
I'd find a good agent, and try to negotiate a 4-5% deal.
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You might find the two are mutually exclusive.