FSBO

Real Estate

by Darrin DeRoches April 7 - 13, 2011

For those who do not know what a FSBO (fizzbo) is, as agents call them, they are For Sale by Owner.  It is where the owners of a property decides to sell the property themselves or with an aid of an internet company who provides a sign and some web presence for a small fee. The owner does all the work and takes all the risk but does not have to pay out a commission, which in their mind saves them thousands of dollars. I could go on about the statistics and how FSBO sell for less but my foray into this was more curiosity than profit.     I live across the street from a condo home development.  So the neighbour right out my front door put their house up for sale two weeks ago.  I was a little surprised since they are the newest on the block; they have only lived there for two years. Then a couple of days ago up goes the SOLD sign. Two weeks it was done.  So my curiosity peaks and I figure they must have priced it low and sold fast, maybe a divorce, job relocation something had to be up. To my surprise it sold for 98 percent of asking and they made a substantial profit in just two years.  I looked into it a little more and realized they did buy the house a little under value, two years ago but they walked away with more than a 10 percent increase in just two years.     So this is where the FSBO comes in.  A unit 12 houses down has been up for sale for quite some time using an internet site.  So I had to look to compare. The house must be ugly, overpriced, bad location etc.  Again I was surprised.  The pictures are beautiful, the house is an end unit, and in my opinion it is underpriced by at least 25,000.  What’s the deal?  I decided to write a note to the owner expressing my opinion and asked to see if we could have a conversation to see how I can help them to sell their home.     It all comes down to the system.  Real estate agents/companies sell homes! Exposure is key and the ability to price it right, market it on the MLS and more importantly work with another agent who has a qualified buyer.  The internet company probably suggested the lower price and the seller believes they are correct and underpriced it which then would make the property sell faster. Right? WRONG! If nobody knows about the property it can be free and no one will buy it!  The townhouse I sold last month sold for $2,000 over what another FSBO company told her to list it at – to start.  She would have probably lost more than the commission she paid out and still be waiting for a qualified buyer.     I will see if the seller responds to my letter and gives me the opportunity to sell their home, if not I will be even more curious to see if and how much they sell it for!  V