Canadian FSBO's, fighting back agains agent real estate commissions
Posted: Monday, May 02, 2005
by Colleen Alderliesten
Canadian Homes 4 Sale .com
78% of Home Buyers Search
On-Line First Before Inking Up A Deal!
That’s up from 41 % in 2001
"For Sale by Owners" AKA FSBO ( pronounced "Fizz-boes") are taking control of the sale of thier own homes!
Statistics show that its probably one of the best ways to go. So-called "Internet buyers." who comprised only 28 percent of the market in 2000, accounted for 45% of the market in 2002 and may now be in the majority. The National Association of Realtors recently reported that for the first time, more home buyers nationwide used the internet instead of newspaper ads as a key information.
66 percent of the buyers surveyed reported using the internet, compared to 49 percent of buyers who say they used newspaper ads.
The fact is that web-surfing home buyers are changing how Canadians are buying real estate, and changing the real estate industry. With a flood of information Canadians are becoming much more studious in their real estate buying techniques and starting to chip away at the 6% commission that real estate brokers collect on each home sold.
Canadians have come to realize that they cannot continue to throw their equity out the window by giving thousands of their hard earned dollars to agents. For a majority of Canadian citizens their homes are their families largest assets. Being a "For Sale By Owners" AKA "FSBO" is simply good money managing, It puts you in control of one of your largest assets, and Its where the real estate market is going with today’s technology.
Colleen Alderliesten is the Webmaster of http://www.canadianhomes4sale.com and has bought and sold real estate in British Columbia , Canada, as a "FSBO" for over 20 years. She can be reached for comments or questions at info@canadianhomes4sale.com
This Article has been viewed 2,672 times. (Not updated in real-time.)
Top-level comments on this article: (2 total)On the internet, I'm betting that the majority of people are using the MLS, which Realtors use, to look for a home. I did.A GOOD agent spends A LOT of time and money in helping a person sell or acquire a property. Buyers don't pay for their advice and knowledge that the agent lives and breathes daily. Sellers only pay if the home sells. The Realtor is out of pocket until then. Realtors know exactly how much comparable homes have Sold for. It doesn't matter what they list at, only at what the market will pay and also, a biggie, what the home will actually appraise for. If a Buyer needs a mortgage this is the clincher. A Buyer may agree to pay a certain price, but if the home doesn't appraise at the price the Seller is asking, the deal will simply fall apart.A GOOD Realtor knows their stuff and has skills in negotitating a fair deal and the best deal for you, whether you wish to acquire or sell a property.Most FSBO's don't sell on their own and end up using a Realtor, wasting precious time and money on advertising, maybe even lost money if the market changes or their home sits for too long, getting stale. It may make Buyers wonder what's wrong with your home if it's on the market too long. If you can wait and see, then try FSBO, for the experience.The Realtors fee for service covers the time involved (such as phone calls answered, returned promptly, fielding numerous questions, weeding out the lookers from the bonafide & qualifieds Buyers), advertising through various means, scheduling appointments of various kinds, advise on other home buying and selling professionals needed in transactions, problem solving by putting things into perspective (Buyers have walked on an offer after not liking something in the home inspection report, or not being able to have the washer and dryer. A Realtor would ask if they really want to lose this home they like over something as little as an appliance. In the grand scheme of things, is it really worth it?) and Realtors have insurance to cover any contract problems or breakdowns.Getting sued could cost a person much more than any fee for service. If a person works all day, they may not want to have another job-all that comes with chosing the FSBO route.Lastly, back to the MLS. All Realtors submit their homes on the MLS in Canada and all Realtors check the MLS daily to find properties for their established clients along with those they meet at the office, at kiosks, from MLS or personal website queries etc. Realtors are well connected to Buyers, well informed about the Real Estate market and spend considerable money and time to help a Buyer and Seller with their needs.It's nice for realtors to say they pay up front to list a house and don't get paid until the house sells but the expenses vs the TENS of THOUSANDS of dollars in commission on the average home is well worth the risk! If it wasn't why would there be so many realtors WILLING to list a single home?Funny how realtors say they work for you whether you are a buyer or a seller to get the "best deal." In these situations they are usually dealing with another realtor who promises the same thing for their client! So who really wins??? I actually heard a radio ad from an agents saying I will negotiate the BEST PRICE when I represent you as a buyer and I will get you the most money for your house when you sell. How can that be done???Most FSBO's don't sell on their own and end up with a Realtor? Source please! Bet you can't come up with a shred of evidence on that one! I know for a FACT that the rate of success in a FSBO system is every bit as successful as with an agent! And don't try and justify a few hours work you put in to sell a house for the TENS of THOUSANDS you charge in commission!What is the true value of the MLS system? most buyers nowadays screen the listings themselves on the internet before viewing a house, so really why do they need a realtor? A sign on the lawn is visible by anyone house hunting - and do the buyers care what sign is on the lawn? The internet is where most people look for homes, they go online, not call an agent now! There are Canadian FSBO sites that give more information and are easier to navigate than MLS sites!Bottom line is there will always be realtors. They just have to change with the times and accept their role is minimal now and the fees they charge has to be reduced a lot. Otherwise, with more reasonably priced alternatives out there, they will price themselves out of the market!!!I have to agree to this statement, and fsbo's getting sued?? nice scare tactics but any fsbo site I have ever visited recommends up front that before you accept any offer of sign any papers that you get your lawyer involved. If you feel confident enough to sell your own home? why not? dont expect to spend $50.00 and sit and wait though. Read up on marketing skills, news papers, magazines and websites as well as a sign and advertised open houses. You have to put your money and effort into selling a home. But you can still save 10's of thousands of dollars in commissionThis is very true. Advertising on one site or one ad in your local newspaper does not make a marketing plan. It is true that potiential buyers will most definetly look at the MLS when searching for a home , but they will also be looking at all relevant sites to their query. How many people actually consign their cars or boats when selling? we do have the brain capacity to sell our own homes. I am not knocking real estate agents at all, they provide a service "when" we dont want the hassle of doing it our selves and we must be willing to pay the price for that service. Either that or put the money in our own pockets and market market market. and then market some more!
Yes - it is what we have been thinking of doing (selling ourselves). However, neither of us are salesman types and are afraid we would mess things up since it is not enough just to let people wander through the house wihtout saying anything, or is it?
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.