Difference between using a realtor or selling on your own

**rxnarunner** · 01-26-2010, 12:29 PM

So...im a new agent, and im wondering what are the real PROS for having someone list their home with me?

I have someone who is thinking of selling their house on their own. More money in their pocket...no commission to the brokers. If you have all the tools to sell your home yourself, is it a smart move?

**twindle** · 01-27-2010, 04:41 AM

I'm not a real estate agent, but according to the economist Steven Levitt, not only do you not have to pay commission by using an agent, but your house tends to sell for more money when you sell yourself. The reasoning is that an agent only gets a small percentage, so getting a few thousand more isn't that much more money for them; they can make more money by simply moving the houses faster.

That said, it's also a lot of hassle. I don't know what I'm talking about to go into details, but I that's what Steven Levitt had to say about it.

**Greg** · 01-27-2010, 06:04 AM

I am involved with 2 fsbo sales right now and both of them are clueless and in no way have the necessary skills to get the job done on their own. In both cases the buyers asked us to represent them and both sellers are helpless.

**BoiseRealEstateSoup** · 01-27-2010, 06:36 AM

It can really go both ways, but it mostly depends upon how much time and knowledge the seller has.

As a new agent, don't fall into the trap of thinking that all FSBO's are totally incompetent. Some of them have done it before and are very successful, the majority on the other hand, over 90%,, usually wind up listing with an agent.

Here's the facts:

90%+ buyers start their search online
most of their search is provided by IDX system of some sort
over 80% of buyers are working with an agent
those agents are generally members of some sort of MLS

In terms of sheer market reach, how can a FSBO compete?

Even if a FSBO can find a buyer, which isn't impossible, do they have the skill and stomach to negotiate face to face with a buyer? Generally that buyer is going to be represented by a buyers agent.

If something goes wrong, let's say an error or an omission, where's the recourse?

A good sellers agent provides a lot of value and I'd make it your #1 goal to write down what the value is all about.

Most FSBO's don't have any idea about what you do, that is why some of them take it on themselves. But as I said, the majority of them wind up listing anyhow. So, if they don't go with you, make sure you stay in touch weekly and provide them some sort of support. More than likely when they do list, it will be with you!

**Moore** · 01-27-2010, 06:52 AM

The main difference is that when you sell yourself you can't knoweverything about the procedures and you can make very many mistakes and lose some money and so on. So it's always better to go to a professional.

**rxnarunner** · 01-27-2010, 07:30 AM

some great points were brought up...im sending them to my friend

what happens if an agent comes in for the buyer and assists him in a fsbo? does that agent get a fee, how does that all work?

thanks again for the responses, greatly appreciated

**TexasLeaseHouses** · 01-31-2010, 01:05 AM

BoiseRealEstateSoup made some great points. The thing is, you don't represent yourself in court: you hire a (killer) lawyer. You don't do your own corporate taxes: you hire a (killer) CPA. Selling real estate is just another thing that you don't do on your own: you hire a professional because of all the legal ramifications.

Also, when you put a buyer & a seller who both don't know what they're doing, the legal ramifications grow exponentially.