The FSBO Diaries Pt2
How about some bookmark love? ::
Next I talked with Russ who is selling a home in Dana Point. I asked Russ all of the same questions. Russ had some pretty strong opinions about the way the market is now, and how things are structured. (With respect to representation in a real estate transaction).
Russ is an internet marketer by profession, and he plans to market his home himself using the internet and all of the traditional methods like classified ads.
"Are you doing open houses?" I asked.
"No". He said that he would welcome showings however, and after 3 days on the market he had not yet spoken to a qualified buyer.
Russ was using a combination of his own marketing with an MLS flat fee service, and even has his home range priced in the event that a real estate agent comes to him with a buyer.
I asked Russ how he determined the price of his home, and he mentioned that he used Zillow. He admitted that Zillow was not as accurate as an actual appraisal, but that it comes close enough. I'm sure that exactly what the Zillow folks aim for, "the close enough" house pricing methodology.
Russ said that if someone is going to sell their home on their own that they have to be "very very realistic about their price." He added that most FSBOs aren't realistic about their price.
Does the price from Zillow help or hurt FSBOs in being realistic about their price? I wondered.
It is Russ' conviction that the listing agreement contract in California is "one-sided" and just protects the real estate agents. He mentioned that it allows the real estate agents to be long on promises without having to deliver results.
I'm reminded of some other local agents who include the "cancel anytime for any reason" policy. There are even a couple who will buy the home from the seller if it doesn't sell. That would be my personal policy, if I had the capital to back it, but I think it is very strong, and instills much more confidence and encourages performance from the agent.
Russ also said, that "with the tons of paperwork involved.." in the real estate transaction, that it was, "probably good to have a professional help with the paperwork." He mentioned that For Sale By Owner's are still susceptible to lawsuits, and that the paperwork involved in a Real Estate transaction doesn't make that easier.
Russ also had an exit strategy from the FSBO concept, albeit he planned to use an alternative broker business model to sell if it takes him too long.
The market is tight and only getting tighter, in my opinion I think that the market conditions make it harder on both FSBOs as well as non-traditional business models. With the right patience level and motivation experimenting to save a buck here or there may really be o.k. if sitting on the market isn't a factor for these locals.
Next I talked with Russ who is selling a home in Dana Point. I asked Russ all of the same questions. Russ had some pretty strong opinions about the way the market is now, and how things are structured. (With respect to representation in a real estate transaction).Russ is an internet marketer by profession, and he plans to market his home himself using the internet and all of the traditional methods like classified ads.
"Are you doing open houses?" I asked.
"No". He said that he would welcome showings however, and after 3 days on the market he had not yet spoken to a qualified buyer.
Russ was using a combination of his own marketing with an MLS flat fee service, and even has his home range priced in the event that a real estate agent comes to him with a buyer.
I asked Russ how he determined the price of his home, and he mentioned that he used Zillow. He admitted that Zillow was not as accurate as an actual appraisal, but that it comes close enough. I'm sure that exactly what the Zillow folks aim for, "the close enough" house pricing methodology.
Russ said that if someone is going to sell their home on their own that they have to be "very very realistic about their price." He added that most FSBOs aren't realistic about their price.
Does the price from Zillow help or hurt FSBOs in being realistic about their price? I wondered.
It is Russ' conviction that the listing agreement contract in California is "one-sided" and just protects the real estate agents. He mentioned that it allows the real estate agents to be long on promises without having to deliver results.
I'm reminded of some other local agents who include the "cancel anytime for any reason" policy. There are even a couple who will buy the home from the seller if it doesn't sell. That would be my personal policy, if I had the capital to back it, but I think it is very strong, and instills much more confidence and encourages performance from the agent.
Russ also said, that "with the tons of paperwork involved.." in the real estate transaction, that it was, "probably good to have a professional help with the paperwork." He mentioned that For Sale By Owner's are still susceptible to lawsuits, and that the paperwork involved in a Real Estate transaction doesn't make that easier.
Russ also had an exit strategy from the FSBO concept, albeit he planned to use an alternative broker business model to sell if it takes him too long.
The market is tight and only getting tighter, in my opinion I think that the market conditions make it harder on both FSBOs as well as non-traditional business models. With the right patience level and motivation experimenting to save a buck here or there may really be o.k. if sitting on the market isn't a factor for these locals.
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Automatic valuation machines are notoriously inaccurrate.
You might as well also check out HomeGain.com who pioneered the web-based AVM concept back in 1999-2001.
They've relaunched their AVM tool but focus on a range and connection to a realtor.
http://www.HomeGain.com
Posted by
Anonymous |
2:42 PM
That's true, but HomeGain sells consumers information to the Realtors. Why wouldn't consumers just approach the real estate agent directly? That way they can get an accurate home price and not have their information become a commodity?
Posted by
Rory |
2:50 PM