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For most new real estate agents, trolling for For
Sale By Owners (FSBOs) is the easiest way to start a career.
Agents know that anywhere from 70% to 90% of FSBOs will eventually fail
to sell their home and end up listing it with an agent. Books,
magazines, and training programs have been devoted to this one topic:
How to convert a FSBO into a listing. With such staggering
numbers, even the greenest of agents know that they are bound to get
lucky if they try fishing for FSBOs.
As you sit on your open house waiting for buyers to
flood through your doorway, do not be surprised that you see several real estate agents
stopping by to offer their services to you. If you include a phone
number in your newspaper advertising, your phone will inevitably ring
off the hook with calls from real estate agents (assuming that you are
not on the "Do Not Call" list).
As you speak with them, you will find a pattern to
their approaches. While some may be friendly and helpful (others
may be down right rude), remember that these agents are after one
thing--to list your house for sale and to have you pay them a commission
for their services. In the following sections, I have summed up
several key phrases agents use and what you can expect the results to
be.
Phrase Number 1: "It won't cost you anything.
We can raise the price to cover my commission." This is
the most ridiculous statement any agent worth his or her salt could make
(yet it is said over and over by agents across the country). If
you have done your homework when you priced your home (see the section
on how to price your home),
why would your home sell for more than it is worth just because it is
listed with an agent? It won't. As we have discussed in
previous sections, your home will sell for what the market says it is
worth. A buyer knows this and that is why overpriced homes sit on
the market and eventually have to be lowered in price just to attract a
buyer. So if you fall for this line, remember this: you will
probably have to lower your price back down just to sell it. The
only difference is now you have to pay a real estate commission.
Is it really worth it?
Phrase Number 2: "I have a buyer. Can
I come by and preview your home for him?" This phrase
comes in many different varieties, styles and wordings. Often
times an agent will ask to come by the home to preview it for their
client so that they can get their foot into your door. They will
stroll into your home, asking basic questions about why you want to
sell, inquiries about the property, etc. 99% of these agents do
not have a buyer. Rather these agents want to size you up, take
advantage of an opportunity to get their face in front of yours, and
probably leave you with a stack of handouts that will explain how they
can sell your home in 7 days or why the average For Sale By Owner fails
at selling his or her home.
The easiest way to get rid of this type of annoying
agent is to tell him or her that you are not willing to pay a 3%
commission (also known as a co-broke) to a buyer's agent. Nobody
works for free, especially real estate agents. Another tactic is
to tell the agent, "Just bring your client by. If they like the
home, I would be more than happy to pay you a commission." Chances
are they will not come back.
Phrase Number 3: "Let me send you my free FSBO package."
The translation for "free FSBO package" is "propaganda to show you that
you cannot sell your home by owner and you should list your home with me
because I know what I am doing and you do not." Often times agents
will include lengthy and complicated forms for you to use that are
designed to confuse and frustrate a seller into realizing that they are
in over their head.
Phrase Number 4: "I can list your home for a
flat $495 fee." Most discounted services should come with
discounted expectations. This type of agent knows that the level
of introductory services they offer for the flat fee, usually something
along the lines of 100 flyers, a free sign, an entry on his or her
website, and inclusion into the multiple listing service (MLS), will not
sell the home. However that agent can expect a majority of FSBOs
to eventually convert the flat fee listing into a full service listing.
Though the MLS is enticing, do not waste your time
with it unless you are willing to pay the buyer's agent a full 3%
commission. As stated before, an agent does not work for free.
If he or she has the option of showing a home with a 2% commission or a
home with a 3% commission, which one do you think will be viewed by the
buyer and which one will never be shown?
If you are pondering this option, know what to
expect and know what it will cost you Be sure to adjust your
seller's net cost sheet and compare that to the real estate agent's
estimation (If the agent does not provide one, ask for one. If the
agent cannot provide one, do not waste your time with him or her). If you feel that you can
succeed on your own, go about selling your home on your own. If
you have your doubts, reread the section on
deciding
to sell by owner before making up your mind.
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