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I don't want to get into the middle of if the agents will or will not show Flat Fee MLS Listing, other than they have a stigma among the REALTOR community. Generally that stigma is that homes listed like this are usually over priced and or not in great condition. Not really the kind of place they want to waist their precious clients at. Generally I like to preview homes before I bring clients in. Many times these flat fee MLS people don't want that, saying it is waisting their time.
In this market, if you choose to go the FSBO or Flat Fee MLS route I wish you luck, you will need it.
Isn't the truth that the stigma is because there is no precious 6% nut to split? Let's be honest eh.
I don't want to get into the middle of if the agents will or will not show Flat Fee MLS Listing, other than they have a stigma among the REALTOR community. Generally that stigma is that homes listed like this are usually over priced and or not in great condition. Not really the kind of place they want to waist their precious clients at. Generally I like to preview homes before I bring clients in. Many times these flat fee MLS people don't want that, saying it is waisting their time.
In this market, if you choose to go the FSBO or Flat Fee MLS route I wish you luck, you will need it.
If the house is over priced or in bad condition, you'll have problems regardless. If the seller really wants to sell, they will let you preview it.
In fact, when I sold my house using Flat Fee MLS, I sent letters to local real estate offices, inviting them to preview the property. Sort of like open house for agents. I can't even tell you how many agents showed up.
Be aware that about 50% to 60% of the traffic on these FSBO sites will be REALTORS and Mortgage brokers looking for warm prospects to call on. Another 20% or more of the traffic at these sites will be the people who are thinking about trying to FSBO their homes. So you are left with not much traffic. Most of the general public knows nothing about these sites and will likely never visit them so the fees you pay them are mostly a waist of money. On top of that you pay them a fee which is not refundable, but they do not guaranty your home will be sold. A REALTOR will not charge you a fee unless your home is sold. FSBO's be aware that these websites really do not deliver much in the way of marketing your home.
Be aware that about 50% to 60% of the traffic on these FSBO sites will be REALTORS and Mortgage brokers looking for warm prospects to call on. Another 20% or more of the traffic at these sites will be the people who are thinking about trying to FSBO their homes. So you are left with not much traffic. Most of the general public knows nothing about these sites and will likely never visit them so the fees you pay them are mostly a waist of money. On top of that you pay them a fee which is not refundable, but they do not guaranty your home will be sold. A REALTOR will not charge you a fee unless your home is sold. FSBO's be aware that these websites really do not deliver much in the way of marketing your home.
FSBO and Flat Fee MLS are compeletely different things. When you choose a Flat Fee Mls option, your property is listed on MLS just like the rest of them. The difference is instead of paying 2.5 or 3% to have it listed there, you pay $500. And it looks exactly the same as all the other ones. It is also listed on "these FSBO sites", but that's just an added bonus. I doubt that an educated seller actually thinks that the listing on FSBO site alone would sell the property.
FSBO and Flat Fee MLS are completely different things. When you choose a Flat Fee Mls option, your property is listed on MLS just like the rest of them. The difference is instead of paying 2.5 or 3% to have it listed there, you pay $500. And it looks exactly the same as all the other ones. It is also listed on "these FSBO sites", but that's just an added bonus. I doubt that an educated seller actually thinks that the listing on FSBO site alone would sell the property.
There is much more to selling a house in a buyers market then just getting it into the MLS, any home owner can go pay the $500 or $700 or whatever they are charging but I dare say that the real statistics would show that a much lower percentage of these homes sell than homes listed and marketed in the more normal ways. The kicker to all this is, at the end of your contract with the FFMLS if you are not sold, well you are out the money anyway. With a REALTOR you would be out nothing but your time.
In this market if you want to sell, you need to put all the marketing strength behind your home that you can. FFMLS is not much.
Isn't the truth that the stigma is because there is no precious 6% nut to split? Let's be honest eh.
No, that is a misconception that many DYI kind of people want to promote. Lets be honest, if you were involved in a legal action where you are trying to recover damages, you are likely going to recover much more if you hire a good Attorney over a bad Attorney or no Attorney. The simple truth is that most home owners are not well suited to sell their own homes and do a good job of it.
The simple truth is that most home owners are not well suited to sell their own homes and do a good job of it.
The simple truth is that most (well, maybe not most but many) home owners should not be home owners in the first place. That's why we are in this mess right now.
Real estate is not a rocket science. What makes you think that a person (sometimes without education past high school) who took a real estate course in a local community college is better suited to sell my property than I am? It's ridiculous!
It used to be the case (many years ago) that agents had all the resources and customers had none. Well, times have changed. It is simply not the case anymore. There is tons of information/resourses available, you just have to dig deeper.
There is another issue no one has touched on. This is more so on a straight FSBO not MLS listed but applies either way because the public does not understand how the game works.
If you are in the MLS and a Realtor is bringing a potential buyer into your home, you can bet that buyer has been prequalified. Especially in this market no Realtor wants to be a taxi driver showing other peoples home for the sole sake of getting decorating ideas.
If you have a FSBO sign on your lawn, the average Joe buyer does not know what that means except that there is no Realtor involved. The average Joe has no idea that today there are FSBO companys who list for a fee and include the listing in the MLS.
The average Joe buyer will indeed knock on a door with out calling first. You the seller have no idea who you are letting into your home. You have no idea if Joe buyer is even qualified. Here is the kicker: If you ask Joe buyer how much money he makes then he will tell you where to go. If a Realtor asks Joe buyer how much money they make then Joe buyer never stops talking.
This is one of the more powerful arguments for hiring a Realtor other then commision.
Speaking of commission. If I were a Realtor and I was organizing a list of homes to show my buyer, I would not show homes where the listing showed a 2 or 2.5% commission as opposed to a 3% to the selling office which almost all the other listings are. As a seller you should be offering the full 3% to the selling office (6% total) rather then 2%. If you dont then you are at a disadvantage.
In this market you need every advantage you can get.
There is another issue no one has touched on. This is more so on a straight FSBO not MLS listed but applies either way because the public does not understand how the game works.
If you are in the MLS and a Realtor is bringing a potential buyer into your home, you can bet that buyer has been prequalified. Especially in this market no Realtor wants to be a taxi driver showing other peoples home for the sole sake of getting decorating ideas.
If you have a FSBO sign on your lawn, the average Joe buyer does not know what that means except that there is no Realtor involved. The average Joe has no idea that today there are FSBO companys who list for a fee and include the listing in the MLS.
The average Joe buyer will indeed knock on a door with out calling first. You the seller have no idea who you are letting into your home. You have no idea if Joe buyer is even qualified. Here is the kicker: If you ask Joe buyer how much money he makes then he will tell you where to go. If a Realtor asks Joe buyer how much money they make then Joe buyer never stops talking.
This is one of the more powerful arguments for hiring a Realtor other then commision.
Speaking of commission. If I were a Realtor and I was organizing a list of homes to show my buyer, I would not show homes where the listing showed a 2 or 2.5% commission as opposed to a 3% to the selling office which almost all the other listings are. As a seller you should be offering the full 3% to the selling office (6% total) rather then 2%. If you dont then you are at a disadvantage.
In this market you need every advantage you can get.
I absolutely agree with your "Joe the buyer" argument. Who says anything about having FSBO sign on your lawn? I would never put one. And I would never let people into my house unless a Realtor brought them. Which is why FF MLS is not really FSBO. You don't need lawn signs (unless, of course, you want to have one). The property is listed in MLS and that's how potential buyers find out about it, not through lawn signs.
About commission, there is no "selling office". I am not sure you understand. You, as a seller, paying commission to the buyer's agent only, which is 2.5 or 3%, which is what they normally get, anyway.
I absolutely agree with your "Joe the buyer" argument. Who says anything about having FSBO sign on your lawn? I would never put one. And I would never let people into my house unless a Realtor brought them. Which is why FF MLS is not really FSBO. You don't need lawn signs (unless, of course, you want to have one). The property is listed in MLS and that's how potential buyers find out about it, not through lawn signs.
About commission, there is no "selling office". I am not sure you understand. You, as a seller, paying commission to the buyer's agent only, which is 2.5 or 3%, which is what they normally get, anyway.
I personally would never put a sign on my lawn. I sold 4 homes in my lifetime and each time against the Realtors insistance I refused a sign.
I was more referring to those who go to the retail store and buy a sign that looks just like a Realtor sign to put on their lawn. Those sellers get Joe buyers knocking on their doors all the time. Those sellers have no idea if Joe buyer is legit or not and can not ask financial questions. But a FSBO sign by FSBO dot com company is still a FSBO in much of the publics eye. They just do not know the difference and will still randomly knock on a door if they notice a home they like with that sign on it.
I know full well how the Real Estate game works. I think I just did not say it clearly enough.
I also know that only about 2% of FSBOs will ever close. That is as a whole but in places like NJ where lawyers handle real estate transactions the % is probably better.
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