As soon as you advertise your own home for sale, you become what is known in real estate circles as a FSBO (“fizz-bo,” For Sale by Owner). What motivates a FSBO? The stated objective is usually to sell a house at full market value and pocket the commission that may have otherwise been paid to a broker. Some owners may not be able to gather an adequate down payment on their next home without every dime of equity from their current one, so their reasoning is understandable. Often, though, the sellers are intrigued by the challenge of a new task and believe that they have the time, patience, and knowledge that it takes to sell it themselves. Many look forward to mastering a new skill and hope to do it as well as professionals.
Most FSBOs do quit and list with brokers, usually within a month, as they begin to realize the study, effort, and expense involved in selling a house. Some tackle the job with zest, however, and carry through the whole transaction. Those who succeed are usually sophisticated in business and financial matters or have done a considerable amount of research.
As a seller, you can eliminate the broker, but you cannot eliminate the expenses incurred and the work performed by the broker. Fee-for-services brokers are gaining popularity, offering homesellers unbundled services, like contract-writing, listing in Multiple Listing Services, performing a comparative market analysis, or assisting with pricing. And there are also discount brokers, offering both scaled-down selling assistance and multiple listing exposure. |
