FSBO: For Sale By Owner What does that mean?

FSBO-For Sale By Owner pronounced (fizz-bo)

In this post I am going to try to give my opinion and overview on FSBO from the buyer’s side and seller’s side, and maybe even an agent’s side, since I am a real estate agent/broker.

Personally as a buyer, I think you are not getting any better of a deal buying FSBO homes. I know the reasoning is that you are buying a house without a real estate agent fee on top, but from what I saw years ago researching it, is typically a FSBO wants full maximum dollar, that’s why they won’t pay fees, and they’ll wait until they get it, often I’d argue it’s over market value much of the time, that’s just what I’ve seen. I know their are cases where you’ll get a better deal FSBO. I would buy a house from a friend FSBO, or an investor not listed, that makes sense. Probate, foreclosure deals, you could get a better deal as just a FSBO. One argument I will make that FSBO could be a better deal is that they don’t have a listing agent representing them to really look out for the seller, so the seller is often bad at negotiating or may say the wrong thing or become too emotional.

As an agent prospective, their has been a lot of articles written that seller’s get less money for their home selling it themselves then if an agent had just sold it for them on the market. These articles could be written by agents, and could be bias, but here is what I’ll say to that. There is no question that an experienced agent has experience negotiating, and his/her full time job is to show prospects and to put out a lot of marketing, this is an advantage that the real estate agent has. I like to think of myself as a pretty experienced salesperson, maybe 10+ years experience, but if I had a $10,000 car for sale right now that was used or new. I’ll be honest here and say that I’d be better off trading it in, or better yet putting it on consignment at a large car lot, the car lots just get far more exposure. They can do a better job than me. There are agents out there that just list houses and don’t sell, that’s not what I am talking about. The other thing I’ll say is, doing an agents job takes so much time. There are you in other states that say houses sell in 1 day with a FSBO sign, that’s fine, in those days maybe you didn’t need an agent, but where I am you have to hustle hard and still wait 4-12 months on the market to get showings, and even after you get an offer it’s still a lot of work. Some of us can change our own oil, or do our own taxes and read up on it, their is a point at which you just pay a professional.

Now from the seller’s side point of view. First off I am a real estate broker, been an agent/broker for 5+ years, and I don’t even list my own houses to save money. Why is that? Because it takes time, and I make more money per hour focusing on other parts of the business I am good at. I personally think people should just pay agents to list a house for them. It takes a long time to do the FSBO by yourself. Also the MLS -Multiple Listing Service, although it may not be as effective as it once was, has a lot of market exposure to provide to your house. For you that don’t know what it is, it’s something that just about every agent in the state or at least metro area logs into for access to view properties for sale, that way you have a chance to get other agents out there seeing your listing. You need that exposure, especially if you are vacant. I will write a post on why you should go with a full listing over not going with a full listing on another post, it’s well worth it, I see the value myself, like I said to even pay someone else to do it.

Why do we all pay when we eat out? Well, because once you go grocery shopping, carrying in the groceries, wasting some food, cooking, cleaning up, doing dishes and finally sitting down to relax, it’s easier to just pay. Well it’s the same with a real estate agent, it just takes a lot of time, so hire one and let them do their job.

I know agents who have sold and listed hundreds and hundreds of transactions, even per year, so if you want your house listed, and probably eventually sold, just email me at ron@minnesotainvestors.com and I’ll try to get you in contact with someone that can help you.

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Tags: direct by owner minnesota, direct by owner mn, for sale by owner minnesota, for sale by owner mn, for sale with owner, FSBO mn, homes for sale by owner in minnesota

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FSBO: For Sale By Owner What does that mean?

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