Why For Sale By Owner's Fail

93% of all Home Sales Transactions are completed with the assistance of a Real Estate Agent....Why? Because people who view FSBO (For Sale by Owner) homes are not represented by an agent.

Studies by the NAR (National Association of Realtors) have shown that "most people" who view For Sale by Owner homes are "just looking." They want the least amount of pressure and are generally "not ready" to make a buying decision. Some are just looking to kill time with nothing better to do on a Sunday, but look at homes for sale.

Home Sellers advertise their property in hopes of finding a buyer without paying a commission...and who wouldn't. The average home in most big cities today sells for over $300,000. Paying a commission on such a large figure will eat up alot of potential gain that could be used toward the purchase of other items....or a new home.

Agents are paid sales professionals selling the highest priced item that most people buy: a Home!

The Paradox

The Paradox comes from the buyer side for a couple of reasons

1) Many Buyers who attempt to purchase from FSBO's, are never able to complete the transaction. WHY? Because many were not qualified to purchase a home in the first place. They give out offers that were never bonafied or verified by a competent source. As a result...they never close. This leaves the home seller in a precarious position.

2) Buyers need to be sold. Most individuals purchasing high ticket items have to be sold. Competition is fierce and a Sales agent is needed to explain and show product benefits and also walk the buyers through the transaction.

How to Avoid this Paradox

You can avoid this Paradox by Listing your home in the MLS (Multiple Listing Service). Agents only show homes to those who are "qualified" and are "serious" about buying a home. BUT agents only show homes where they can make a commission.

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The Solution

Agents have a grasp on the local market and generally work with 3-12 homebuyers at any given time. This dynamic creates a large demand that influences the demand side of the market.

How can you, the home seller, take advantage of this GREAT DYNAMIC of using an "Agent to sell"...and still keep the greatest amount of "Equity in your pocket?"

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