As a for sale by owner seller in the Omaha Metro area, you may have wondered how the process really works. Yes, you market your home FSBO, buyers look at your home, and a buyer will give you an offer and you close. We all know that. But have you asked yourself these following questions? Here’s the truth.
1. What percentage of the market will FSBO sellers reach?
2. What type of buyers purchase FSBO versus working with a Realtor?
1. These will be buyers who have had great experiences buyer/selling FSBO previously
2. Real estate investors looking to bypass Realtors to pick up discounted homes
3. Buyers who are just starting the process (most of these buyers will hire agent representation at some point since the representation is free). These buyers typically search the internet and type “Homes for sale Omaha” They normally don’t type in “Homes for sale by owner Omaha”. Try going to google and type in both and see what pops up. Chances are, the FSBO homes are not even on the radar.
1. Buyers who are relocating to the Omaha, Metro area for job reasons. They don’t know the area so they work with professionals who do.
2. First time home buyers who have never been through the process before and need guidance
3. Sellers who believe in representation to protect their interests. Buyer’s agents represent buyers. Listing agents protect the interests of sellers.
2. If I’m willing to pay the buyer’s agent side of the commission, will that persuade them to show my FSBO?
Maybe – maybe not. The multiple listing service has between 3000-6,000 listings at any given time. If the buyer’s agent exhaust everything in inventory and cannot find the perfect home for their buyer, they may look to outside sources such as pocket listings (homes that Realtors know about but not on the market) or for sale by owner properties. Listing agents are protected by contracts-buyer’s agents are not. At any point, there is a risk that the buyer might go around the buyer’s agent and work directly with the seller and there is nothing that protects that Realtor’s time, energy, and money working with that buyer. For this reason, Realtors prefer to work with listed property. Even if the FSBO transaction goes through and sellers are willing to pay the buyer’s side of the commission, Realtors do not prefer these transactions. In a regular listed property, there are professionals on both sides of the transaction each responsible for their client’s side of the work. In a FSBO transaction, the Realtor will have to do both sides of the work. That’s similar to the seller doing their work and their co-worker’s work for the same pay.
3. If I contact as many Realtors and possible to let them know I have a FSBO, what is the likelihood of them showing my home?
That’s not really the way the industry works. When an agent lists a property, assuming they know how to market the home, that Realtor will reach the buyers directly as well as over 2,000 agents. A fraction of the agents (let’s say 15-30) which is less than 1% of the Realtor community will have a buyer who is looking for that type of home. Unless you’re willing to contact all 2,000+ Realtors, it’s really difficult to get lucky to call the right Realtor with the right buyer for your home.
4. Even if I save the list side of the commission, will I really net more?
Maybe-maybe not. Realtors account for 85-90% of the buyer market. If you’re willing to pay the buyer’s side of the commission and you end up selling your home for less than what you could get had you open your home for sale to the entire market by working with a great Realtor, you may net the same or less by selling FSBO. A buyer will never tell you they don’t like your home or that the home is overpriced. They don’t want to hurt your feelings. There is a reason why most FSBO’s end up working with Realtors after wasting time, energy, and money trying the For Sale By Owner route. Work with Heeran’s Home Team at RE/MAX Platinum and you can try FSBO and hire us to list and sell your home at the same time. If you end up finding a buyer, the listing will convert to a 1% FSBO Facilitation and we’ll handle everything from contract to closing. Click Here To Get More Information About Our 1% FSBO program.
For a private home selling consultation, call Heeran’s Home Team at (402) 707-7878