Title: MY INSIGHT - An Article To FSBO's From Milestone's Broker
Description:
MY INSIGHT - An Article To Home Sellers From The Managing Director/Broker of Milestone Real Estate Professionals, LLC.:
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Did you know that FSBOs are less than 15% successful in selling their homes??
That's a discouraging statistic if you are contemplating a FSBO transaction; but not-so-much, when you consider the following factors:
a. Time - Selling a home is a full-time endeavor, but few FSBOs can afford to devote the full-time hours of
a professional Realtor. They have to work around the requirements of their everyday work schedules -
and when they are available, they either work alone or with family and friends, to market their home.
Family and friends, supportive, though they may be, have the same issues as the seller; they have
jobs, families of their own and other commitments that keep them from prioritizing the task of getting
the homeowner's home sold.
You can depend on your Realtor to be on the job, during all regular business hours and far beyond. A
successful one generally works at least 14-hours day!! If they are not in motion (showing properties,
previewing properties, conducting open houses and such); they are meeting with new and old clients, meeting with transaction partners (to ensure a deal is moving in the right direction), they are out in the community
generating new business, or they are fielding phones calls and handling contract reviews, and
submissions. A productive Realtors life is a busy one.
You may feel that the above comment doesn't track when comparing to a FSBO transaction;
but it does - because no matter whether it's one deal or 10, they are all handled in much the same
way by a Realtor. If you decide on a FSBO transaction your deal will also follow roughly the same
process, right to the point of needing the counsel of an expert in the industry.
b. Resources - Usually the resources of the seller, family, and friends combined - simply don't equal
the resources of a full service agency. At some point in the process, the homeowner usually has to
contract the services of a professional; an accountant, an attorney, a title company, various
contractors, tradesmen, and a licensed real estate agency, such as Milestone.
c. Marketing - Is an extension of the above; resources challenge. The homeowner, family and friends
usually can't come up with enough ways to promote the sale of the home, because marketing is not
their area of expertise. Additionally, whatever kind of marketing a homeowner might decide to employ,
there usually are not enough people in their available labor pool, or enough money to sustain the
necessary ongoing marketing campaign for 3-6 mos (the average time a home is on the market,
well...now-a-days, maybe longer!!!).
d. Money - The idea of FSBO generally comes about because a homeowner believes they can't afford
the services of a Realtor; if this is the case (as it rarely is), then perhaps there are other ways we
can help you. The reality, however - is that most homeowners don't actually understand how a Realtor's
commission works. I find that understanding how they get paid can sometimes make the difference
in a seller deciding to partner with us on the sale of their home; instead of trying to go it alone. So, first
let me first say; Realtors don't get paid until your house is SOLD!!
Realtors never get advance money, in spite of the fact that immediately upon "listing" your home, they
start spending their own money (not agency money) to get the job done. Realtors are Independent
Contractors (or self-employed) - that means that although they work in concert with Milestone
(because they must work under a Licensed Real Estate Broker, in order to work as a Realtor); they are
not employees of Milestone, who make a salary, have benefits, and also get commissions from their
sales. NO.....
Realtors are fully dependent upon the commission they earn off the satisfactory sale of client
properties. If they don't sell your home, they lose ALL the money they invested to sustain an
aggressive marketing campaign, to meet that objective! Needless to say, the fact of how they get paid,
in my opinion, makes for very dedicated and committed sales people with a strong incentive to sell
your home, as quickly as possible!
e. Convenience - You may be able to make the job of trying to sell your home into an enjoyable and
entertaining pass-time for a short while, but in reality - real estate sales is a busy and serious business;
the demands and inconveniences that this job poses will quickly begin to out-weigh the entertainment
of it!
For a Realtor, no part of the process is inconvenient; it is their fulltime job and you can depend on them
to be on their job, during business hours and beyond.
When you're trying to save money (and time) or time (and money) - the above factors are less discouraging as they are realistic, and should always be considered, when one weighs in on the idea of FSBO. However, I also realize that some of us have to arrive at these conclusions on our own!
Before I became a Licensed Realtor and then advanced to become a Licensed Real Estate Broker; I was (and still am) a property owner - and I too, felt I could sell, buy and trade property on my own; but I learned early-on that I just didn't have the resources of an Agency and I realized being an entrepreneur, myself - that I was paying more for services because I didn't have established relationships with the people I needed, to move the transaction along.
And, then I also had to admit to simply not having the expertise to effectively and economically market my properties and the endeavor ended up taking so much of my time (as the old adage goes; "Time is money!") - after spending a fair share of mine and my hard-earned money I realized I couldn't afford to act as my own agent! I finally broke down and hired a Licensed Realtor and all the stress of my multiple transactions, melted away!
As a property owner (first) - I highly recommend the use of a Licensed Realtor; if they are a good agent, they are worth every penny of their relatively small commission check.
Now that you are forearmed with more understanding of what being a FSBO might mean to you and before you subject yourself (further) to the added stress involved with selling your home, on your own - I'd like to extend a personal invitation to take our Milestone 90-Day Challenge. The Challenge is a very good way to have the advantage of Milestone Agency Resources and our qualified, professional Realtors working for you; while you still continue to try to sell your home (on your own), at the same time! Why; it's the best of both possible worlds!
If your interest is peaked, check out The Milestone 90-Day Challenge, detailed on another page, under the caption of the same title.
Thank you for taking the time to read MY INSIGHT and good luck with whatever avenue you choose to sell your home!
- JDS -
Continue reading FSBO information on FSBO vs. Full Agency Service and other options.....
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