Friday, March 4, 2016
By Patrick Ferry

 

Why do I ask?  Because I have concerns and a lot of compassion!

#1 reason homeowners choose to sell on their own:

Save money of course!  Common wisdom says If I save the commission of 2-3% (if I work with a buyer's agent) or 5-6% (no agents at all) then I will save $ thousands of dollars.  Hello, DIY all the way!!!

The challenge I have repeatedly seen over 14 years ... is every year, year after year the survey results are typically the same.  The average FSBO sells around 10% less than the average agent represented sale accross the US.  

Again I only mention this because I care.  Dead serious about it, I had to many very sad experiences in 2008 - 2011 hearing about families who were already in a bad financial position make even worse decisions with the sale of their home, it was literally heart breaking!  Do I just believe the surveys, no way!  In the last 12 months (in a strong seller's market here in San Diego) there have been 6 homes that tried FSBO that I'm aware of in my immediate area and here were the results.

1- One very successful sale after 65 days of marketing the home the owner accepted a great offer, still paid the buyer's agent fee.  (He also sent me a thank you card and gift card for helping him :).  I would love to explain to you why he was so successful.

2nd- Owner tried FSBO for 45 days, then listed with property manager who did no marketing and just put it on the MLS at a discounted rate, it sat vacant for another 60 days then accepted an offer at $650,000.  I know for a fact I could have sold that home for $700,000, because it was down the street from my house, it wasn't just a $50,000 loss because the home sat vacant for over 120 days before closing.  (Ouch for the whole community)  

3rd- An Owner of a nice home listed with flat fee company (also in my community), and they went in and out of escrow 2 times over 90 days, during which they moved out of state to then accept an offer with a buyer's agent commission paid out.  They sold for $706,000 which was pretty good, even though a house down the street not as nice same floor plan sold for $735,000.  The buyer's agent afterward said to me "they were so easy to negotiate with, with a big grin" he was a pro that sells about 50 homes a year.

4- Another owner in a community across Encinitas Blvd from me, I don't even know what happened and it's been over 6 months.  He was an out of state owner, the home was vacant and the house had significant damage in the garage.  The owner was asking was way too much as if the house was in perfect move in condition.  This needed some professional help to navigate the issues with the home (because no lender would lend after an appraiser saw the home).  It's been vacant ever since and the owner got mad at me for trying to explain and help and I lost contact.  I checked zillow.com and the status still is the same.

5- A retired couple listed with a flat fee company in a community next to mine.  When they showed me the home,  I had to hold back my facial expressions as they showed me all their latest finishes/upgrades.  I just felt so bad because they must have spent $5-10,000 to prepare the home for sale and if they would have consulted me I could have saved them money on those finishes and then helped them make better decisions and ultimately got then at least $30-50,000 more in the end.  That property is still pending.  They may have received a solid offer because it's an amazing street (one of my favorites) but I know for sure because they didn't consult an expert they left a lot of money on the table.

6 - Was a million dollar home, that started FSBO for 45 days then listed, then canceled the listing after 60 days, then went back to FSBO and then eventually just stopped trying altogether.  I don't know about you but that just sounds like a horrible way to spend 6 months!  Imagine all the calls from real estate agents, investors, weird service providers, lookie loo buyers, and showing appointments that canceled without notice!  YIKES!!!

Can you see why the stats are what they are?  I have spoken with and consulted 1000s of FSBO and a small percent do it well.  Most don't know what they don't know and when selling one of the most expensive assets and handling a serious legal document intensive transaction it doesn't surprise me there is a high DIY failure rate.  I have tremendous compassion and concern as you can tell.

I would be willing to spend 2 hours doing some research on your property, plus come to your home and spend another 15 - 30 minutes with you ... if you would be willing me show me the home and have a conversation.

Most likely I will be in your area this week so just let me know if there is a two weekdays and two windows of time and I'm sure I can make one.

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