FOR SALE BY OWNER – Pro’s & Con’s

Should you list with a Realtor? Or sell it yourself? Let's look at the Pros and Cons.

FSBO

Pro: You will pay a flat rate and/or a monthly rate dependent on the level of service.

Con: You pay a flat rate and/or a monthly fee. This is money out of your pocket, with no guarantee of success. You pay them, and you do all the work. And, this is significant...

Con:  Realtors in your town won't show your home to their clients unless you agree to pay their commission – if they sell it. The selling commission will be on top of the FSBO fees.

Pro: You are totally in charge. FSBO’s do not, indeed cannot represent you in a real estate transaction. You answer buyer inquiries, show your home, host your own open houses, handle the paper work, handle your own negotiations.

Con: FSBO's cannot represent you in a real estate transaction. They are unregulated, unlicensed, and are not held to any code of ethics. This impacts some of the most basic services. For example, they are not allowed to advise you on how to price your property. To do so falls under an agency relationship and would be considered ‘trading in real estate’. That requires a license.  These parameters are set in place to protect you, the consumer.

Pro: You are free to market your home any way you want, any where you want with minimal limitations, as long as it's honest.

Con: You will pay your own costs, and do your own marketing in a niche you may not be familiar with. AND, you cannot put your home on the MLS site (Multi Listing Service). This is a system built by Realtors for Realtors. If you want your home on MLS, you will have to pay an additional fee to a licensed Realtor to list it on their own site.

REALTORS

Pro:  You will get their full service and if the house doesn’t sell, it doesn’t cost you a cent.

Con: You will be authorizing your Realtor to provide their full service - what ever that means. For that, you will be charged a commission on the sale price. The higher the sale price, the higher the commission.

Insider Tip: Commission rates can be negotiated and tend to be a sliding scale - the higher the price, the smaller the percentage. Negotiating a reduction in the commission by just one per cent can reduce the commission on the sale by thousands.

Pro: REALTORS in Canada must be licensed. In doing so, they answer to assorted authorities including CREA (Canadian Real Estate Association), in BC, BCREA (BC Real Estate Assocition) and in Kamloops - KADREA (Kamloops and District Real Estate Association). Through these organizations they are held to a strict code of ethics including what can be claimed in advertising. Your agent is responsible - if something goes wrong!

Con: Your Realtor is licensed and held to a standard of ethics that limits what can and cannot be disclosed. And they won't want you chatting with the buyer in case you say something that causes the deal to go awry. Your agent is responsible if something goes wrong!

Pro: REALTORS include MLS listings at no extra charge. It’s in both party’s best interest if they do. After all, they don’t get paid unless you sell!

Con: ... Well, we can't really think of a downside to listing on the most used real estate site on the Internet.

The truth of the matter is, if it was easy to sell a house everyone would do it. Why not let me do your work for you.

Call me, it's that simple.

Blog Archives

Tags