In the real estate industry, we call homeowners who list their properties for sale on their own FSBOs or for sale by owners. The obvious primary goal of a FSBO is to save money on real estate commissions. In recent years, we have seen more For Sale By Owners, especially in lower price points and in neighborhoods outside of the city center. There are a few reasons for this increase, including the openness of the MLS system, the perceived role of a real estate agent, and market conditions.

Recently, the MLS (Multiple Listing Service) was opened to the public, which means that a FSBO could list their property on the MLS (still through a realtor and brokerage), but could manage the sale process on their own. account without offering a cooperating broker a commission for finding a buyer. The reality is that real estate agents will be working with a buying client for months, sometimes years, so naturally, a real estate agent would like to be paid for their efforts. For this reason, real estate agents may not work with you and bring their qualified buyers to your home. FSBOs also tend to overvalue your property, but a real estate agent knows the true value and will present their client only properly priced properties.

Real estate agents are often placed in the same category as a used car salesman: the perception is that real estate agents are rolling in the dough with very little effort. In recent years, the real estate market has been booming, making a realtor job look easy with properties listed on the MLS selling hours or days after being listed. What people don’t realize is that there is a lot going on behind the scenes when selling a property and also a lot of responsibility. It’s a full-time job and people don’t realize this: a real estate agent’s job includes pricing, marketing the property, managing appointments, negotiating the contract, and ensuring a smooth closing. We’re talking big bucks when buying or selling a home, and in most cases, this is the biggest purchase someone will ever make. Working with a real estate agent as a buyer is a free service, so there is really no benefit to the buyer if he doesn’t, since he is protected by his own real estate agent. As real estate agents, we live and breathe real estate, so selling or buying a property is second nature to us: we know what questions to ask and what to look for.

The good thing about working with a real estate agent is that the seller does not pay for the service unless the property is sold. In the case of a FSBO, every time they hire an attorney to assist them, they are charged an hourly rate, regardless of whether or not the house sells. In the end, there are FSBOs who sell their property on their own, but about 80% of FSBOs end up listing and selling with a real estate agent.

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