The Reality of Real Estate (BlueRoof Blog)

Thoughts, opinions, and truths about real estate and life as I see it...

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Location: Salt Lake City, Utah, United States

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Friday, August 04, 2006

For Sale By Owner Help from Realtors?

My second week in the business I went to lunch with some experienced agents who each gave me their advise on how to be successful as a rookie and unanimously I was told to stay away from For Sale By Owner (FSBO) sellers because these were people who were very different. I was told these people were mean to agents and even when they did eventually list they were difficult to work with. I asked these agents how many of them worked with FSBO sellers trying to get listings and none of them did. They all stayed away from them and worked other sources.

I saw an opportunity. I figured if these agents weren't talking to FSBO sellers then I should. Over the years most of the listings I took have been FSBO sellers who eventually got tired of trying to sell on their own and listed with me. And I have learned to understand them, and their challenges, more and more. Most people who attempt to sell their own home do end up listing with an agent. Why is this?

To begin, almost all the buyers are working with an agent, and why not- it doesn't cost the buyer anything for this representation- and most real estate agents won't show FSBO homes. They don't show these homes for a few reasons.

First, it's much easier and effective to go to the MLS and do a detailed search of exactly what their buyers are looking for.

Second, with the MLS the agent knows they will be paid a commission by selling a home and with a FSBO they have no idea if the seller is willing to pay them.

And pride is a factor- Realtors want to support their trade.

It can also be costly to sell a home. According to the National Association of Realtors, here is how FSBO's market their homes.

Yard sign: 63%
Newspaper advertisement: 44%
Open house: 33%
Friends / neighbors / relatives: 25%
Internet: 24%
Direct mail (flyers, postcards,etc.): 6%
For-Sale-By-Owner magazine: 6%
Television: 1%
Other: 9%
Source: 2004 Profile of Buyers & Sellers, (NATIONAL ASSOCIATION OF REALTORS® - Research, 2004).

Some of these numbers are changing now with the internet becoming so dynamic and accepted as a marketing forum, but it can be an expensive (and tedious) task.


So where does this leave the buyer who hasn't been able to find the right home with their agent? Many times they settle for something they don't like as much, other times they look without their agent at FSBO properties and end up having to go through the process alone, and some times they can find a FSBO home with an agent, and then the agent needs to worry about whether or not they'll be paid for their time.

BlueRoof can help. We have every listed property, from every brokerage- and all the virtual tours that are posted on the MLS. And we also have FSBO homes. We also allow FSBO sellers to identify if they are "Agent Friendly", meaning they are willing to pay a buyer agent a commission if they bring the buyer.

And the service is free.

This can help the FSBO sellers by exposing their property to more potential buyers, it helps the buyer by giving them more homes to see, and it helps the agent by giving them a searchable database of homes where the seller has already agreed to pay to a commission. And to place a home FSBO a seller only needs to register (for free) with an email address. We don't require you to committ to anything like ZIPRealty (who just started their new FSBO program) and other FSBO sites do.

When a buyer makes an offer to buy a FSBO home on the BlueRoof website- that offer is sent directly to the seller, who can then respond to the offer, which is sent directly back to the buyer. Once acceptance occurs, the offer details are sent to BllueRoof and an agent will contact both sides and ask if they would like our representation coordinating the transaction. If they do, we will help both sides all the way through closing for only $1000 total. If an agent brings a buyer to a FSBO property on our site, we will also represent that seller from offer on- for that same $1000.

In the market that Utah is in right now more people are trying to sell FSBO. Sure, most of them will probably end up listing with an agent, but until then we'll help best we can.

8 Comments:

Anonymous Anonymous said...

Tips for Being a Successful Landlord

In today’s apartment rental market there are several things that are “must do’s” for becoming a successful landlord. The reason you’re playing the real estate rental game is to have the check in your mailbox on the first of the month, right? Here are a few tips that can help you to achieve this with as little aggravation and frustration possible.

First and foremost is finding the right tenant to rent your apartment, house or other rental. This is the most important ingredient in the recipe. Checking the prospective tenant’s credit history to make sure they are paying their bills is one of the best ways you can screen. A tenant that pays their bills on time most likely will send you their rent on time. Establish a clear system on collecting rent, handling complaints from the tenant and how you will contact them if you need to gain access to the apartment.

Secondly, get all the important terms of the tenancy in writing. You have the option to have a basic rental agreement or draw up a formal lease. Whichever you decide, the important thing is to document the terms that you and the tenant agreed to. Clarify who is paying the utilities, the rental price and any other agreements made between you and your tenant.

It’s a good idea to stay on top of the repair and maintenance needs of your property. When you are notified of something that is broken or not working, repair it as soon as possible to prevent further damages. You may also lawfully enable the tenant to withhold rent, sue for injuries caused by defective conditions or move out without notice.

On a similar topic make sure you are carrying enough property and liability insurance to cover yourself in any situation. A well designed insurance program can protect your rental property from losses caused by everything from fire and storms to burglary, vandalism, and personal injury lawsuits.

I hope that this has been helpful to you. Just remember, as long as you follow these simple tips you will be on your way to a happy and fulfilling landlord future. Best of luck!

ABOUT THE AUTHOR: Eric Goldstein, associated with www.AllSpacses.com which Conveniently Connects All People with All Spaces in All Places, has been dedicated to the real estate rental market for over 8 years. He has assisted over 25,000 landlords with their renting needs. Any questions about renting apartments, houses or other rentals feel free to visit www.AllSpaces.com or email him at Eric@AllSpaces.com.

11:59 AM  
Blogger Brian Joss said...

There is a new step by step manual just published to help the for sale by owner.
It's written by a guy that I've sold two homes through. He's retiring and he sent me a copy when I contacted him about selling again.
I know, I got it for free (not really as Iv'e paid out over $38,000 in commissions!) but, it's dynamite. The only difference between listing with him and following the steps is his contacts, but for another $22,000 this time, I can do without that. It even comes with special software to track the escrow and closing with reminders as to when and what to do.
Check it out at his site FSBO.He even lets you read the first chapter for free AND gives a money back guarantee.

5:33 PM  
Blogger Lee Desmond said...

GOING FSBO IN A BUYERS MARKET.

What a great opportunity. Most people would think it's crazy going For Sale By Owner in a buyer's market.
However, this can really be the time when the FSBO can score big over the real estate agents.
If you follow the step by step instructions in the new manual FSBO: You CAN Do It you'll be laughing all the way to the bank!
I got an advance copy of it to edit and it's the best thing I've ever read on selling by owner.

It even comes with software to help you get your house ready to sell and for tracking everything once you have landed the sale.
Before I edited this manual, I was going to list my house next year, but not any more as I can save thousands if I do it myself. Check it out at the website www.fsboyoucandoit.com and they'll even let you read the first chapter for free.

4:09 PM  
Blogger Ian Monroe said...

FSBO: You CAN Do It!
Why do you want to sell?
The first thing you explicitly want to get clear in your mind is the answer to the above question, NOT why do I want to sell FSBO. If you don�t know why you want to sell, then you are wasting your time.
Saying things like �Oh, I just want to get a bigger house�, or �I just want to move (out of the City, Town, State etc.) sets the stage for disaster from day one.
Successful sellers KNOW what they want to do, and where they are moving to, before they even think of selling.
Your mindset should be along the lines of:
�I want to move to Edinburgh, Scotland next July and buy a 300 year old house with three bedrooms, central heating, two baths, single story and some etc. etc.�
This also applies even if you are moving to a retirement home or community. Pre-select the place you are going to, and visit it. Make sure in your mind this is what you want and commit to it.
This is how specific you need to get. Write it down so your goal is always in front of you!
Selling a house is all about planning and I am going to quote this once, and only once, but remember it as we go through the process, or fall into the abyss!
�FAIL TO PLAN, AND YOU PLAN TO FAIL!�
Now that you have decided that you definitely want to sell, you must get one thing straight. This also pertains if you list your house with a Realtor�, so listen up!
You will notice that throughout this article I use the word �house� to describe your residence. I NEVER refer to it as your �home�.
I only use �home� when I am talking about buying, NEVER selling.
Once you have committed to sell, NEVER, NEVER, EVER again refer to the residence you are selling as your home.
THIS IS CRUCIAL!
You are selling an object.
You are selling a house.
You are selling a piece of real estate.
You are selling a plot of dirt with a structure on it.
You are NOT selling your home!!!
Your home is where you are moving to when this transaction is closed.
You must emotionally detach yourself immediately you decide to sell. If you don�t, quite simply you will fail.
If you remain attached to this pile of bricks or wood as your home, you will not be able to proceed as you must.
It can be a hard thing to do. You may have brought up your family there. You have put blood, sweat and tears into the place over the years. It may have some wonderful memories. It may be the locality where your roots lie.
However, you must disconnect.
Make sure your family also abides by this rule, so quit saying things like �Let�s go home�.
You are going back to the house. Period! End of story!
Actually this will come up again in pricing your house and negotiating, so get used to it.
Once you have this set in your mind, you will need to ask yourself the next obvious question: Why do you want to sell FSBO?
This article is an excerpt from the new �how to� manual �FSBO: You CAN Do It�. For more on this topic, the system is available for instant download at www.fsboyoucandoit.com. It comes complete with FSBOagenda� software to help you get your house ready for sale and showing, as well as tracking the process once you are under contract. It even comes with a flyer template.

5:02 PM  
Anonymous Anonymous said...

free rental commercial publicity

12:33 AM  
Anonymous Anonymous said...

I am looking to buy a house from a seller that will let me make payments to them monthly. I live in Ogden and prefer to stay in this area. If you have any listing or can find anything listed like this please e-mail me at encirle30@yahoo.com Bridget Peterson

11:48 AM  
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9:06 AM  
Anonymous CoachingByPeter said...

By knowing your local real estate investing market, you're able to keep your finger on the pulse of your local community and to stay abreast of changes in trends, sales prices and rental rates. Knowing immediately about these changes is critical to your investing future.

9:03 PM  

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