By Carole Hawkins, [email protected]
It’s tough for Realtors to hear. But, sometimes people sell homes without the help of an agent.
And with the abundance of information online, it’s easier to do a job once considered the sole domain of agents.
Four home sellers shared their experiences at the Florida Realtors Convention, held last month in Orlando. Two used agents — with certain misgivings — while two others went the for-sale-by-owner route.
It was clear the FSBO sellers hadn’t worried much about (or sometimes even known about) some of the issues for which Realtors extensively train — like safety and liability. But that’s not all that was behind their lack of loyalty to the industry.
Moderator Brandy Saldivar explored where agents had fallen short and what it would take to convert an FSBO seller to a Realtor client.
What did you do when you decided you wanted to sell your house?
Jennifer: “I looked at comparable properties in the neighborhood and also at my house’s assessed value with the county. And, I looked at the price I had paid for the house and the renovation I had done. From there, I set my value. “
Cindy: “We looked at comps online and I had two Realtors give me their appraisals.
If they had said our home was worth a lot more, we would have gone with a Realtor, because we would have been better able to afford it. We purchased a $179 flat-fee listing from Zillow, so we would be on the MLS. “
Mike: “I checked prices and assessments. Then I drove around and looked for Realtor signs to see who was selling homes in my neighborhood. I also went on Realtor.com to see which Realtors had a lot of listings in the area. I picked the first Realtor I called. He knew the area and sounded very professional.“
Why didn’t you want to use an agent?
Cindy: “We knew we wanted to at least try to sell our home, because we had sold a home 10 years ago on our own. But that was right when the market was just taking off and the home sold really quickly.”
Jennifer: “I used a Realtor when I bought my home. But I just personally knew there was nothing more she could do for me as far as advertising than what I could do for myself. Because I had done renovations, I had more personal knowledge of the details. I couldn’t see giving up the commission when I knew that I could pitch the sale myself. And I felt, with what I had in the house, I had more motivation than a Realtor who’s getting 6 percent. “
How was the experience of working with/without a Realtor?
Cindy: “When we first listed, we got an offer and a contract within three weeks. But it fell through on financing. The buyer’s bank appraised the house lower than what was offered, so they wouldn’t give her the loan. We’ve dropped the price several times and now we’re at the point where we’re selling it for what we paid for it. We’re not going to go any lower. “
Mira: “The first buyer’s agent was a very bad experience for us. We were very new to this country at the time and perhaps she didn’t know us properly. At the closing, it was very uncomfortable, because she didn’t educate us on the procedure that we were going to go through. It was like she was keeping it all to herself and we had the right to know.”
Mike: “It didn’t go too well. I felt my Realtor wanted to set a low price and sell a lot of homes. His numbers looked good, but I think perhaps he wasn’t getting the value out of the homes.
If I had been a little stronger and said, ‘I really think we need a higher price,’ we would have eliminated 20 days when we were in limbo. Nobody was calling me and we were getting no offers. Near the end of the contract we had a talk. We raised the price and the house sold in three days. “
What was the biggest challenge you faced doing an FSBO?
Jennifer: “It was a pretty smooth process, like changing the title to your car. I lucked out. I had a cash buyer. But I wish I was more knowledgeable on mortgages and bank financing.”
Cindy: “I find that negotiating with somebody is difficult. You don’t have that buffer, like you do with a Realtor. And writing the contract is intimidating.”
Is there anything we as agents could do to convince you to work with us?
Cindy: “Not at this point, because we’re priced now to where we’re not going to make any money. If you add a commission to that, we’re in the hole.”
Mira: “I think I’d do as well as a Realtor, because in the last five years I’ve educated myself so much from buying. But in the end if I’m not able to sell my property, I will depend on the second buyer’s agent we used. He’s stayed in touch and has become a very good friend. From the first contact we had with him, everything clicked.”
Jennifer: “I would have waited 12 months before considering a Realtor. It was aggravating when Realtors wanted to come by the house, saying they had potential buyers and in reality the appointment they set was to try and get the listing. I would have preferred to get an email from a Realtor saying. ‘Hey, I just wanted to share this information with you,’ if they had wanted to talk about the pros and cons of listing with a Realtor. I would have gone and researched the issues they mentioned. But definitely their name would have been on my radar.”