Why FSBOs Fail - The Real Story
Sure (you’re thinking), real estate agents are ALWAYS going to tell me they are better than selling “By Owner.” True. A lot of those reasons are valid. But that’s not the point. A LOT of what homeowners think about Realtors just isn’t true. Homeowners see the agent put a sign in the front yard, they see ads in the newspaper, they see the agent holding open houses and they see the online listing of their home.
A homeowner’s copy what the agent does. They put a sign in the yard, hold an open house, run an ad in the paper, and put their house online on some site that very few buyers ever visit, much less buyers from the local area. About ten percent of FSBOs sell their home successfully. About ten percent of homes listed by agents get sold by the listing agent. COINCIDENCE? Not likely.
Agents do things that homeowners DON’T see and don’t even think about. They talk to other agents. Most listing agents are NOT trying to sell your home directly to a buyer. They are trying to convince other agents to sell your home. THAT’S THE SECRET.
The “Brokers Preview.” For this, there is a set time once a week where all the new houses are “open”…but not open to the general public. They are open to other agents. Your listing agent sits in the house and “waits” for the other agents to appear. But…these are crafty agents. There isn’t time to visit ALL the new listings, so sometimes they have to be “enticed.” Food works.
Flyers. You probably think these are the flyers sitting in your house to highlight all the good things about your house. These flyers aren’t sitting in your house and they may have some different information on them than the flyers sitting at your house.
What does the agent do with this stack of flyers? Truthfully, some never even look at them. Others will look at the flyer and most will get tossed in the trash. Why, because they only keep the ones that fit the needs of the agent’s buyers. Once again, your agent is marketing your house, not directly to buyers, but to agents who have buyers looking for houses. WAIT, THERE’S MORE…
THEN THE BONUS, The Multiple Listing Service or as Realtors refer to it…THE MLS. You probably think it is like those listings you see on line. Sort of, but with much more detailed information. On line, you are just reaching one buyer who is looking for a specific type of home at a certain price in a general location… maybe. With the MLS, you are reaching people who know exactly what they are looking for and have several buyers who might be interested. BIG DIFFERENCE!
The sign, the newspaper ad, the online listing…why don’t they work for FSBO’s? It is only the top layer of the onion, there are so many other layers an agent peals behind the scenes. Those other layers are the things that sell your house, things you don’t even see the listing agent doing.