Tuesday, October 10, 2017

What For Sale By Owner Websites & Programs Don't Want You To Know

What For Sale By Owner Websites & Programs in Rhode Island Don't Want You To Know

By Emilio DiSpirito

For more information visit www.TheRoundTableRadio.com

  1. The owner of For Sale By Owner.com used a Realtor to sell his Manhatten Condo. 
  2. Upfront Fee's! 
    1. When working with a Realtor, more often than not, you will not pay anything upfront as Realtors get paid at the closing.
  3. Inferior Listing
    1. FSBO websites in Rhode Island limit the number of photos you can place online. Many times fewer than 10 are allowed. The RI Statewide MLS allows 40. 
    2. Often times, there is no connection to the MLS
      1. Multi Listing Service aka MLS is the website Realtors only have access to.
        1. MLS feeds to thousands of websites
        2. All of the Realtors see homes on MLS
        3. FSBO homes are hardly seen and websites have low traffic
  4. FSBO sites do not have to abide by any standards of Ethics
    1. Realtors have a strict code of ethics they are held to or will face harsh punishments by fines or dismemberment.
  5. FSBO statistics in Rhode Island & accross the Country (NAR 2015)
    1. FSBOs accounted for 8% of home sales in 2015. 
    2. The typical FSBO home sold for $185,000 compared to $240,000 for agent-assisted home sales.
  6. Most difficult tasks for For Sale By Owners in RI
    1. Getting the right price: 18%
    2. Preparing/fixing up home for sale: 13%
    3. Understanding and performing paperwork: 12%
    4. Selling within the planned length of time: 3%
    5. Having enough time to devote to all aspects of the sale: 3%
  7. Where are the buyers?
    1. 88% of all buyers used a Realtor.
      1. That's nearly 9 out of 10 buyers 
  8. Why is FSBO an awful idea?
    1. Cutting yourself short with exposure. Less exposure means home sits longer and nets less.
    2. Buyers and Realtors avoid FSBO because of uncertainty. 
    3. When working with a buyer, Realtors will be forced to do both sides of the transaction without compensation. FSBO need step by step instruction to do the sale. 
    4. FSBO are negotiating against industry professionals. Who will win? Someone who does this 365 days per year for a dozen years or someone who is selling their home?
      1. Main reason why the typical FSBO listing sold 23% less than a Realtor listing!! That is $46,000 on a $200,000 home!!!! 
        1. $200,000 less Realtor commission of 6% = $188,000 ($34,000+)
(According to NAR 2015 statistics). 

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