Using a Realtor to Sell Your Home VS For Sale By Owner

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In the real estate industry we call home owners that market their property for their own FSBO's or For Sale by Owners. The obvious main goal of a FSBO is to save money on real estate commissions. For Sale By Owners, especially in the lower price points and in the neighborhood outside of city cores. There are a few reasons for this increase including an opening up of the MLS system, perception of a Realtor role and the market conditions.

Recently, the MLS (Multiple Listing Service) was a co-operating broker, but could manage the selling process on their own without offering a co-operating broker commission for finding a buyer. Realtors wants to work with a buyer client for months, sometimes so naturally. Realtors would like to be paid for their efforts. For that reason, Realtors may not work with you and bring their qualified buyers to your home. FSBO's tend to overprice their property, but a realtor knows the true value and wants to introduce their client only to properly priced properties.

Realtors are often placed in the same category as a used car salesperson. Over the past few years the real estate market has been booming making a Realtors job look easy with properties listed on the MLS selling hours or days after being put up for sale. What people do not realize is a lot of that goes on behind the scenes when selling a property and a lot of business as well. Realtor's job includes setting the price, managing the property, managing appointments, negotiating the contract and ensuring a smooth closing process. We are talking about huge amounts of money when buying or selling a home and in most cases. Working with a realtor as a buyer is a free service so there is no benefit to the buyer. As Realtors we live in a real estate estate, we ask the property for a second time.

The nice thing about working with a realtor is that the seller does not pay for the service unless the property sells. In the case of a FSBO, they are charged on an hourly basis, regardless of whether or not the home sells or not. In the end, there are FSBO's that sell their property on 80% of FSBO's end up listing and selling with a realtor.

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Source by Joy Paterson

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