The Annoyance of For Sale By Owner (FSBO) Transactions In Evergreen CO
The Misconception of Saving Money
One of the main reasons why For Sale By Owner (FSBO) transactions in Evergreen Colorado can be so frustrating is the misconception that selling a home independently will save money. This belief is often held by homeowners who think they can avoid paying a commission to a real estate agent. However, this is a flawed perspective because the commission of an agent is typically factored into the comparative market analysis used to determine a property’s value.
The homeowner who chooses to go the FSBO route may believe they are saving money, but statistics often tell a different story. In reality, these homeowners are likely to sell their homes for significantly less than if they had enlisted the services of a real estate broker.
Overlooking the Risks
Another factor that contributes to the annoyance is the FSBO seller’s disregard for the potential risks involved in selling a home independently. We live in a time where safety and security are paramount, and vetting strangers who express interest in a property is a crucial step in the home selling process.
A FSBO seller may unknowingly invite potential criminals into their home, exposing themselves and their property to unnecessary risk. This lack of awareness and precaution can be frustrating to observe, especially for real estate professionals who understand the importance of these safety measures.
Underestimating the Expertise of Real Estate Agents in Evergreen CO
The decision to sell a home independently can also stem from a misunderstanding of the expertise and skills required to successfully sell a property. Some FSBO sellers may believe they can effectively market their homes without the help of a professional. However, this overlooks the fact that real estate agents spend years honing their skills and often invest thousands of dollars into marketing and distribution networks to ensure the properties they represent reach the right buyers.
The Frustration of Buyer’s Agents
Perhaps the most infuriating aspect of FSBO transactions for real estate agents is when a buyer, who has an exclusive agreement with an agent, expresses interest in a FSBO property. In such cases, the FSBO seller often refuses to offer a buyer co-op to the agent, effectively cutting out a significant portion of their potential market.
This decision not only prolongs the selling process and reduces the final selling price, but it also exposes the seller to multiple legal risks. Furthermore, it places an unfair burden on the buyer, who would then be responsible for paying a commission that is typically covered by the seller.
The Importance of Paying Buyer Agent Commission
If a homeowner is determined to sell their property independently, it is crucial that they understand the importance of offering a commission to the buyer’s agent. Failing to do so can significantly reduce the pool of potential buyers and make the selling process far more challenging than it needs to be.
Choosing to sell a home independently can seem like a good idea on the surface, but it often leads to unnecessary complications and frustrations. Unless the goal is to have strangers constantly touring the property without any serious intent to buy, it is advisable for sellers to avoid making these common FSBO mistakes.
Buyers and Buyer Agents in Evergreen Can’t Stand FSBO Homes
Not sure why For Sale By Owner or FSBOs are so annoying. Is it because the neighbor is using an agent to sell their home and the agent commission is figured into the comps that people use to determine market value? Perhaps. Is it because the For Sale By Owner guy thinks he is going to save a couple bucks by selling himself even though all statistics prove him wrong and will most likely sell his home for a lot less than if he were to use a real estate broker? That might be it as well. Maybe the fact that he is not realizing we live in a dangerous time and he is not vetting strangers walking through his home casing the joint to see what they should come back to steal later. Is that the FSBO guy thinks he can do a job that takes years and years to get good at? Does he think he can market his home better than a marketing and distribution network that some realtors spend thousands of dollars on?
I Can Help You Sell Your FSBO Home in Evergreen When Your Are Ready
I think all of that is really annoying but the thing that dives real estate agents absolutely insane is when a buyer finds a FSBO online and they ask their broker about it. Now keep in mind most buyers have a buyer’s agency with their Realtor. Meaning they exclusively work with that agent to purchase their home. Now FSBO guy, when talking to the Realtor, says “no I will not offer a buyer co-op to an agent that brings me a buyer”. Now this is the absolutely dumbest thing anyone can do when selling their home. This for sale by owner guy has just cut out about 90% of his market. So in addition to taking longer to sell his home, getting less money for his FSBO, opening himself up to multiple exposure legally, he has just taken away about 90% of his possible buyers. Since most buyers will not be responsible for paying their agent on the buy side and that money comes from the seller, why in the heck would a buyer want to buy your home? They would then (most of the time depending on the specifics of the buyer agency agreement) be responsible for paying a commission when buying your home. Even in a seller’s market buyers are not that stupid.
If you plan to a FSBO, you have got to pay the going rate of commission to a buyer agent. Unless you really don’t want to sell and just have strangers going through your home all the time. Then by all means do everything wrong.