As a real estate professional, FSBO training is important and learning HOW to talk to FSBO’s is essential. Here is how to tell them you; a Realtor is a better option to sell their home:
If you’re considering selling your home, the idea of doing it yourself and saving that real estate commission can be alluring. Don’t. For sale by owner (FSBO) will cost you much more than you will save on commission in the long run. Here’s why.
The first thing you need to consider is holding cost. Holding cost is what it costs you to hold onto your property. Things like your mortgage payment, real estate taxes, insurance and utilities. Your holding cost is the sum of those costs times the number of months it takes to sell. For instance, if all of those costs add up to $3,000 and it takes you 6 months to sell your home FSBO, your holding costs are $18,000. This is important because if you are selling your home of $200,000 and commission is 6%, that commission won’t cost you, in fact if you compare it to the holding costs, it will save you money. Even if it takes the realtor two months to sell, you still come out even. Most FSBO’s take much more than 2 months to sell.
The next FSBO issue is pricing and types of buyers. What is meant by this is even if you price your home to market price, buyer expectations will be different. Your buyer will know that they aren’t dealing with a professional. They will also know that there will be no commission. Their expectation is like the buyer at a garage sale. It doesn’t matter if the item is brand new, it’s a garage sale and they won’t pay retail prices. This is no different. They expect that you will negotiate below asking because you are saving the commission. You expect to get market and save that commission. You both can’t win, and likely you will lose.
Another issue is the types of buyers you will get: unqualified buyers. A Realtor will only bring great buyers who are ready and more importantly able to buy. Those who you will find are most likely not going to be able to get financing and will either waste your time or ask to do a lease purchase. Save money by using a Realtor, time and aggravation too!
Learn the facts here and use this in your training to talk to FSBO’s.