The Real Estate Guy in Madison wisconsin, is a top Real estate Professional.    In these days it takes a full time professional, dedicated to continued improvement of his team’s professional abilities to get homes sold.   That is why I am spending 4 days in Orlando with the best comapny training in the business, dedicated to getting homes sold. 

When it comes to FSBO,  I prefer to call them unrepresented sellers -actually owners- because they are not selling.  I am really confused as to why someone would take the legal and safety risk of going it alone. 

Yes it was popular in Madison Wisconsin 3 years ago when homes were selling like hot cakes. 

Now is not then. Even mediocre agents are not selling, it really takes the very best.

So why do owners think FSBO?  I usually get the commission/cost answer, once in a while the ”bad experience with a Realtor”, or “”on’t know a good one”, we did before, or the funniest one, “a friend did so I thought I’d try”.

My response is usually, If you were being sued for the value of your home, would you hire an attorney, or defend yourself?  I consider this a good analogy. 

We sell hundreds of homes and we know how to do it and how the market is. 

But I want to address the commission idea.  Some how people get hung up on the cost of 6%.  Sure it is a large chunk of money, but I have never worked harder to get homes sold.  Here is the reality, everything sold has it’s costs.  A pint of milk in the store has a cost added by the retailer.  Ebay has it’s cost, doctor, attorney.  These costs usually add to the overall price of the item.   A dairy couldn’t sell if it didn’t have outlet which increase the price. 

So with Real estate, The National Association of Realtors came up with some stats, saying the average price was 16% higher with a Professional than unrepresented seller. NAR article

If that is not enough, what about the certainty of getting moved and family settled into another home, what is that worth.

I am fixing to come up with as many mistakes an owner could make which could be more than 6%.

Costs involves in these mistakes could be one or more of the following!-  

  1. Holding costs, $1-3,000/month
  2. missing the market, seasonal or sliding
  3. lower sales price, less marketing, exposure, negotiating
  4. litigation 

When ever I mention the mistakes owners always look at me incredulously and ask “what mistakes?”  I really don’t want to be a defeatest, so I hold back, but I thought I would start a list.

By the way, once made, these mistakes are all but irreversible.

  1. Incorrect pricing,    too high  scare away buyers
  2. pricing too low, give up equity
  3. not negotiating well enough, inexperienced.
  4. telling too much to buyer
  5. not answering quick enough    buyes need to know quickly
  6. giving too little too soon.   So often these days, buyers will walk if offer is just countered. A FSBO will tend to come down too little until too late.
  7. lack of exposure so fewer buyers.  Real estate Guy Team’s marketing package
  8. accept offer from unqualified buyer
  9. accept offer with bad terms
  10. accept offer with “subject to” contingencies. 
  11. ask a professional to sell in august or November once the market has died.
  12. ask professional to list when market has fallen.  bear in mind that 70% of sellers finally list with a Realtor.
  13. ask a Realtor to sell when they are in financial trouble and it is too late
  14. Ask a Realtor to sell when they are about to vacate to move to Florida (ie leaving an empty property.
  15. omit disclosures. encouraging lawsuits
  16. becoming invisible to the best buyers- out of town relocatees working with a Realtor.
  17. deals falling dead due to inspection and inability to solve issues.
  18. same with financing. 
  19. missing offers because seller can’t close.
  20. accepting 2 offers.

I will stop at 20.    I have seen examples of all of these over the years and have helped pick up the pieces after wards.   It can be messy.  

I do hope you can see the folly of thinking a Good Real Estate Pro is a disposable service.

I am also not suggesting you can not do it yourself.  But even if you do, you may have made some of these mistakes your self.    Are you going to put your families greatest asset at risk?

Real Estate Guy is a professional dedicated to showing owners exactly what they need to do to sell a home in Madison wi