In the past three weeks, I have been actively involved in three FSBO’s. As a Massachusetts real estate attorney, I am often the “default resource” for people who do not want to pay a broker’s fee for the sale of their home. Whether this is an accurate conclusion on their part or not, they no not see the “value added” of a 3 or 4 or 5 percent charge to sell their home. They can rely on Craig’s List; they can relay on word of mouth; they can rely on the Internet:<\/p>\n
I thought it might be worthwhile to describe the three situations in some detail. They may give our ActiveRain\u00a0Naton\u00a0some insight into FSBO’s and the fact that a constricted economy has caused many more\u00a0people to use them:<\/p>\n
\u00a0\u00a0\u00a0\u00a0 1. The Luxury Home in the Suburbs. My client is an extremely successful\u00a0person in the financial area. His home is in pristine condition. He has an opportunity to relocate to the Western state where he grew up. He got the word out through the network in which he operates that his home was available, A similarly situated young couple had recently signed a purchase and sale agreement to sell their home. They have the money and the credit score. I have worked many times with their attorney on other deals. There were a few title issues. The other attorney and I worked things out. Last night I picked up the signed purchase and sale agreements at my client’s home. I will be holding the deposit for a closing in late March. This is a done deal, with very little likelihood of not taking place. <\/strong>I find it hard to see how a Realtor could have\u00a0filled many of the holes here. My fee will be be more than usual, but certainly not in the middle five figures. This transaction would appear to have presented an efficiency that cannot be questioned. ActiveRain Nation may question this statement. I would be interested in hearing your comments.<\/p>\n \u00a0\u00a0\u00a0\u00a0 2. The Home in the Suburbs which has some “issues”.This matter came to me at a time when the Seller had received an “Offer” from a couple who had seen the FSBO Listing on Craig’s List. The Offer was a “low-ball” and there was no pre-approval letter attached. The Seller is in the “in-between” stages; he may be losing his job, and he would rather take a defensive stage and sell his home now. I prepared a counter Offer which provided some of the protections an Offer should contain, especially for a Seller. The putative Buyer declined to respond. He was a “tire kicker” from the get-go. My client has wasted money\u00a0 , and is no further along. Sooner rather than later, I am going to suggest that the client list this home with a Realtor. It is my feeling that this will be easier to do now that he has seen how expensive and wasteful of time and money FSBO’s can be. I do not believe I could have told him this; he had to experience it.<\/p>\n \u00a0\u00a0\u00a0 3. The Condo in the Back Bay that my Seller has not really even decided whether he wants to sell or not. This is a different\u00a0kind of\u00a0FSBO. It is kind of “I will run it up the flagpole and see if anyone salutes.” The Unit has charm and the asking price is only a little over market. My sense is that in this economy the Seller will not get much traffic. I prepared an Offer for them to use if one of their open houses produces a Buyer. I am not holding my breath. I am not getting any of my broker friends involved just yet. This Seller is a reverse “tire kicker”, and it is my belief that having a Realtor involved at this stage would not be productive.<\/p>\n So, there is a waterfront of three (3) FSBO’s, each offering different situations. Our industry should be considering how we can offer”value added” to FSBO Sellers. They are a rapidly increasing population, and just calling the Sellers who are listing property without a realtor \u00a0may not be the ultimate solution.<\/p>\n","protected":false},"excerpt":{"rendered":" In the past three weeks, I have been actively involved in three FSBO’s. As a Massachusetts real estate attorney, I am often the “default resource” for people who do not want to pay a broker’s fee for the sale of their home. Whether this is an accurate conclusion on their part or not, they no … Continue reading FSBO’s–They are Increasing in Number; They Have their share of “Holes”; It Would be a mistake to view them as the “Enemy”<\/span>