The FSBO. Yeah, you know this acronym inside and out, the challenge is how do you explain to the “for sale by owner” consumer that using a Realtor® is more than paying a commission to sell their house? Plenty of homeowners try to sell their own residences by sticking a homemade sign on their front lawn and listing some inaccurate data and self-edited photos on Kijiji. But when it comes to selling your home privately, the risks outweigh the rewards.
Is the consumer really informed about what services and safeguards are offered by you when listing and selling a home? Perhaps it is time to focus on more than being just a typical agent, it is time to get real and highlight the benefits that come with your professional real estate services.
The high cost of saving on real estate commissions
One of the initial things that comes up when you mention a Realtor® is commissions. While selling your home privately in Ontario may seem like a good idea it can cost the seller more than the real estate fees associated with an agent’s services. First off, the market is not always hot but whether it’s booming or busting your experience and access to statistical information keeps you in the know about the current market value of a property.
Overpricing or underpricing a home can cost the FSBO seller time and/or money. As an agent, you know how to get a property sold by making good use of proptech like 3D tours, floor plans, and comparative market analysis data. According to a recent NAR report, a FSBO sale is very likely to end up netting the seller a lower price than if they worked with an agent.
You know how to get top dollar for a home because of your access to information, excellent real estate marketing plan and negotiation skills. Not only do you save the seller the hassle of a FSBO transaction by setting up virtual tours and virtual open houses but using proptech tools from iGuide® gets the seller the best market price in the least amount of time.
If it smells like a rat
When you work as a real estate agent it is your full-time occupation. Life experiences in the profession have given you a sixth sense about potential home buyers. A FSBO consumer is keen to open their doors to anyone who comes knocking, after all, that is how you sell a house right? An open-door policy is great when you are working in a secluded space amongst trusted associates but allowing everyone and anyone to enter when selling your home privately may lead to some trouble.
Realtors® have safeguards in place to protect the consumer from theft, inaccurate information, and misrepresentation. Crimes during open houses are easily avoided with the implementation of virtual tours and virtual open houses. Targeting qualified buyers using iGuide®’s proptech tools allows you to bring serious contenders to a physical showing. And when it comes to providing the most accurate information about the dimensions of a home, interactive floor plans and advanced measurements have got you covered. No need to entertain the snoopy neighbour or the would-be thief sniffing around like a rodent.
Protection for the transaction
Mistakes happen. But when a mistake happens in a real estate transaction someone is going to pay the price. A smooth transaction begins with presenting all the facts and figures as accurately as possible. Precision measurements on floor plans combined with 3D tours from iGuide® allow you to present a clear understanding of the space to potential buyers. On the flip side, a FSBO listing does not offer any proof of actual size opening the seller up to misrepresentation.
Real estate agents know the value of using disclosure statements to provide information about patent defects or latent defects that could affect the sale of a property. When selling your home privately in Ontario these defects could end up causing a lawsuit against the homeowner in a FSBO situation.
Failing to disclose a known problem such as mould or previous basement flooding is grounds for seeking damages through the courts. Realtors® know how to ask the right questions, follow through with solid marketing plans, and can get the property sold quickly all while protecting the interests of the seller. Should an unexpected mistake occur, your errors and Omissions insurance is in place to shield you, the seller, and the buyer from costly damages.
Ease of process and access
According to NAR’s 2021 home buyer’s and seller’s trends, 89% of all home sellers and 87% of all home buyers use a real estate agent for their real estate transactions. One of the top reasons for a seller to use your services is to help sell their home at a competitive price and in the least amount of time.
How does a Realtor® satisfy the needs of the seller? Make the process easy with minimal disruption to the seller’s life. Real estate marketing includes using proptech tools from iGuide® that provide access to the home 24/7 via online 3D tours and laser-accurate floor plans. Intuitive navigation makes it easy for a buyer to uncover the inner beauty of a home without interfering in the seller’s daily activities.
Selling your home privately only results in a sale about 10% of the time according to Inman because a FSBO consumer is limited by the lack of skill, proptech, and experience with the whole process.
Time is of the essence when you work in real estate. Achieving a sale quickly is dependent on your use of proptech tools to provide a smooth and successful transaction for the consumer. Your expertise, skills, and service are no match for the novice FSBO. The answer to the question of whether or not someone should sell their home privately is to forego selling by owner for the ominous reasons.
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