Friday, May 16, 2008

FSBO Myths

I recently came across an ad for a For Sale by Owner site.

In their Myth's about real estate section they made remarks about all the reasons to sell you home by yourself. For only $695 they will "list" your house. * all savings based on 5%, 6% and 7% commissions. SAVE SAVE SAVE

They are indeed all tempting points. You can earn the portion of the commission you pay by dealing with the lawyers, bankers, mortgage company, insurance company and property appraisers. Attend every showing at an hour's notice, keep the home sparkling clean all the time. Dealing with Buyers and their objections or comments. Your lawyer can draft a contract.

All, while you're at work...

Then they went on to discuss how 50% of the market is now FSBO?

Their websites receive thousands of hits?? The Elegant Homes websites receives close to 10,000 hits per month, people from other Canadian cities considering moving here.

How does that compare with Millions of Hits at (soon to be renamed May 28, 08) received on a monthly basis. Searchable properties by Neighbourhood and pricing. All property Details have verified Data.

The site gave an example of how a home sold in Toronto at $16,000 had a real estate fee of $960.00, many years ago. My father, new to Canada, bought a house in 1954 at $16,000. In the heart of Roncesvalles Village. This was more than 4 times his annual blue collar wage, we had no family car, there was no cable, there was no TV till '68. [He] was concerned with earning a wage and providing for his family and future education.

I would like to see what gas prices were in 1954. I remember filling up the family Beetle for $4.00 (that was in '71 when gas was 49 cents per gallon).

Please, consider some of the unsubstantiated and outrageous claims with a grain of salt.

Real estate results and sales are tracked and reported (because taxes are collected at each sale)

Realtors need to comply with myriad regulations that puzzle buyers and sellers. Legal disclosures, multiple offer acknowledgements, Consent and awareness of Agency Laws. Buyers Agency and Representation, and you haven't seen any houses yet.. Confirmation of Representation, prior to signing an offer to Purchase.

Buyers who are cruising FSBO's are also looking to "Save the same commission' and usually are looking for undervalued properties and unsophisticated Sellers.

Newest is the FINTRAC Reporting. If you use cash.... we need to tell.

I am obligated to obtain and retain photo ID or passports. (photocopy)

More for Sale by Owner Myths

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