When listing your home, should you list with a Realtor? Or buy the For-Sale-By-Owner kits?
FSBOs charge a flat rate upfront and/or a monthly fee, dependent on the level of service you choose. This is money out of your pocket, with no guarantee of success. Service can be as minimal as sign on the lawn, a listing on the FSBO’s site and a check list of where and how else to market it. You pay them, and you do the work.
And remember, if you want the Realtors in your town to show your home to their clients, you’re going to have to agree to pay their commission anyway – if they sell it - on top of the FSBO fees.
REALTORS charge a negotiated commission on the negotiated sale price. Commission rates are not cast in stone. You can negotiate the rate, and it can pay off. Reducing a commission rate by just one per cent can reduce the commission on the sale by thousands. You will get their full service and if the house doesn’t sell, it doesn’t cost you a cent.
FSBO 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 the best price to list at. FSBO’s don't represent you in a real estate transaction, can’t answer buyer inquiries for you, can’t show your home, can’t host open houses, can’t handle paper work, are not allowed to mediate negotiations or advise you on market conditions…and the list goes on and on. To do so falls under an agency relationship and would be considered ‘trading in real estate’, which requires a license.These parameters are set in place to protect you, the consumer.
REALTORS in Canada must be licensed and be members of CREA (Canadian Real Estate Association), their provincial association (here in BC it’s BCREA) and their local board, here in Kamloops it’s KADREA. Through this they are held to a strict code of ethics. They have duties to you as their client and are held to a strict standard advertising. Your agent is responsible if something goes wrong!
FSBO cannot put your home on the MLS site (Multi Listing Service) a system built by Realtors for Realtors. If you want your home on MLS, the FSBO’s will have to charge an additional fee to pay a licensed Realtor to list it for them, on their own site. In most cases this won’t be in your local MLS board, making it very difficult for your target market to find.
REALTORS include MLS listings at not extra charge. It’s in both party’s best interest if they do. After all, they don’t get paid unless you sell!
The truth of the matter is, if it was easy to sell a house everyone would do it. Selling homes is hard work. Let us do the heavy lifting for you. Call Doren or Jim today.