I recently came across a situation when the owner of the property had a certain concept, and the FSBO advertiser sold them a Pie in the Sky Idea.
Here's the situation;
Owner's of a New home SAVES SAVES SAVES the commission on the sale of their Brand New house that they did not move into. It is and continues to be vacant.
They place a FSBO sign on the lawn clearly identifying the property.
They PAID this internet site and concept provider in good Faith that their house would be exposed to the market and they would Save.
The phone number they wrote in on the sign.... Was the telephone number of the FSBO site's contact to sign up as a FSBO.
The FSBO site has no way to cross reference the phone number to a property, there is no way to direct the caller to a certain Owner, there is mechanism to book an appointment, there is no available information to contact the owner.
Has the FSBO site done anything wrong? Not really. They promised for the $500 that the home would be advertised online and provided a sign. Is that all? The Owner's have assumed that posting the telephone numbers would have people calling to show and buy their house. No FSBO company offers any appointment booking or prospect screening services.
The owner? They didn't understand the concept of selling themselves, clearly.
The loss? The house is sitting, unattended on a quiet street, VACANT, with no prospects viewing it, or calling from the sign as the contact information was miss posted.
Realtors are paid on performance and successful completion of task. No Up front fees. All the marketing expenses are borne by the Realtor or Real Estate Company.
What is lost here is the carrying charges on that property for probably 2-3 months while they are wondering why no one is calling, an eventual sale with a normal 45-70 day closing, property taxes, utilities and heating a vacant house during the winter season. If there is no mortgage; well indeed you have forfeited the opportunity cost of using your money for 4 - 6 months.
But the FSBO site told you, you would save.
With 164,000 properties listed in Toronto and only 74,500 actually sold, realtors are batting 50%. The odds for FSBO's are obviously lower, no matter the claims made by the FSBO sites.
Realtors also need to be creative to create a buzz about your property.
If you are considering the sale of your property meet with a professional experienced Realtor who will explain the process in plain english, so you understand. A seasoned agent also will offer you guaranteed service and an easy out if you are unhappy.
I would be pleased to meet with you at your convenience. David Pylyp can be reached by either calling 905 361 3387 or email David@Davidpylyp.com