- Joined
- Sep 14, 2007
- Messages
- 617
I have been having some excellent conversations lately regarding the debate over For Sale By Owner vs. Realtors. Which is better? Well first off I hate the term "Better". This is one of those subjective and obtuse terms that should be removed from the english language so lets re-fraise it to "When is FSBO right for you and when should you use an Agent"
I have had the opportunity to interview some of Canada's leading experts and some local Canmore talent as well and I must say that I have my eyes opened in a few matters. Some myths have been un-truths and some truths are no longer. The market IS changing.
As I mentioned in my last post I use Realtors for about 90% of my transactions however most of my transactions are purchases as we are "buy and hold" most of our real estate. But we are sometimes sellers and for that side of things we am more like 50/50. If the property is close and I have expertise in the local market I may list it myself. The other big factor for me....do I have the time? This is a big one and shouldn't be underestimated. Ask yourself "Can I take time off of work, away from the kids and my leisure activities to show this property?"
I got to talking with Janis Sharp who is the owner of the Canmore franchise Propertyguys.com. Janis is a business savvy lady and I think she will become a force to be reckoned with here in Canmore. Janis also sees the future of real estate changing greatly and she is looking to be ahead of that curve. Mrs. Sharp made a few comments that made me think the first being "People obsess about real estate. For the most part, they know pricing both good and bad." And I would agree. Like gas prices Canadians can tell you the value of their home in about 2 seconds.
The second thing that made me rethink my perspective on FSBO was that "Homes sell on average 3 weeks sooner." Sooner? Really? I am not sure I can really put any rational behind this but stats wouldn't lie would they?
The last thing that the ="_blank" style="color: #cc9933; text-decoration: none;">Propertyguys.com owner said to me was that "FSBO sells for 97% of asking price but owners make 6% more on average" Now maybe this explains the three weeks sooner comment!
So what does all of this really mean? Well for starters "Don't be surprised when listings go up" says Don R Campbell of the Real Estate Investment Network. "People can now easily list so we will see those out there fishing for their price." Don also thinks that this will drive down the average price and I agree. But then lets think about that for a second. The price may be 97% of asking but the owners are making 6% more. So why is the price down? Well because you no longer have to pay Agent fees. With that large number out of the equation prices do have some room to fall.
But this all sounds too good. Sell your home faster and keep more of the cash at the end of the day. So where is the catch? Mr. Campbell says, "If you can't sell hotdogs to a starving crowd then FSBO isn't for you!" And I totally agree. Most people are not great sales people and, lets face it, to get someone to buy your $600,000 Canmore home you have to sell it. Be honest with yourself and ask "do I really like sales?" If the answer is no then don't hesitate for two seconds to call up the best agent and town and hire them!
The other factor that can come up is the legal pitfalls that can happen. If you write a messy contract then welcome to your worst legal nightmare. Make sure you are using a contract specific to real estate and get your lawyer to approve of it. This may cost you a couple of hundred dollars on the top end but it could be the best insurance you will ever buy.
At the end of the day you need to ask yourself is my time and emotional investment worth possibly saving a few dollars? Have I got the skills to make this transaction happen? And do I feel comfortable selling my own home. If the answer to all of those questions is yes then best of luck to you! If not, then please call the best agent you know (often this isn't your uncle Jim) and get them to do what they do best!!
I have had the opportunity to interview some of Canada's leading experts and some local Canmore talent as well and I must say that I have my eyes opened in a few matters. Some myths have been un-truths and some truths are no longer. The market IS changing.
As I mentioned in my last post I use Realtors for about 90% of my transactions however most of my transactions are purchases as we are "buy and hold" most of our real estate. But we are sometimes sellers and for that side of things we am more like 50/50. If the property is close and I have expertise in the local market I may list it myself. The other big factor for me....do I have the time? This is a big one and shouldn't be underestimated. Ask yourself "Can I take time off of work, away from the kids and my leisure activities to show this property?"
I got to talking with Janis Sharp who is the owner of the Canmore franchise Propertyguys.com. Janis is a business savvy lady and I think she will become a force to be reckoned with here in Canmore. Janis also sees the future of real estate changing greatly and she is looking to be ahead of that curve. Mrs. Sharp made a few comments that made me think the first being "People obsess about real estate. For the most part, they know pricing both good and bad." And I would agree. Like gas prices Canadians can tell you the value of their home in about 2 seconds.
The second thing that made me rethink my perspective on FSBO was that "Homes sell on average 3 weeks sooner." Sooner? Really? I am not sure I can really put any rational behind this but stats wouldn't lie would they?
The last thing that the ="_blank" style="color: #cc9933; text-decoration: none;">Propertyguys.com owner said to me was that "FSBO sells for 97% of asking price but owners make 6% more on average" Now maybe this explains the three weeks sooner comment!
So what does all of this really mean? Well for starters "Don't be surprised when listings go up" says Don R Campbell of the Real Estate Investment Network. "People can now easily list so we will see those out there fishing for their price." Don also thinks that this will drive down the average price and I agree. But then lets think about that for a second. The price may be 97% of asking but the owners are making 6% more. So why is the price down? Well because you no longer have to pay Agent fees. With that large number out of the equation prices do have some room to fall.
But this all sounds too good. Sell your home faster and keep more of the cash at the end of the day. So where is the catch? Mr. Campbell says, "If you can't sell hotdogs to a starving crowd then FSBO isn't for you!" And I totally agree. Most people are not great sales people and, lets face it, to get someone to buy your $600,000 Canmore home you have to sell it. Be honest with yourself and ask "do I really like sales?" If the answer is no then don't hesitate for two seconds to call up the best agent and town and hire them!
The other factor that can come up is the legal pitfalls that can happen. If you write a messy contract then welcome to your worst legal nightmare. Make sure you are using a contract specific to real estate and get your lawyer to approve of it. This may cost you a couple of hundred dollars on the top end but it could be the best insurance you will ever buy.
At the end of the day you need to ask yourself is my time and emotional investment worth possibly saving a few dollars? Have I got the skills to make this transaction happen? And do I feel comfortable selling my own home. If the answer to all of those questions is yes then best of luck to you! If not, then please call the best agent you know (often this isn't your uncle Jim) and get them to do what they do best!!
