A training video for real estate people tells all about the For Sale By Owner market and why saving money on commissions probably doesn't add up. Provocative and insightful perspective for anyone considering or already offering a For Sale By Owner property.
Cracking the FSBO Code - Video Webcast Replay with Kevin Ward
If you don't want to spend an hour watching this presentation, here are two major points about For Sale By Owners attempt to go it alone with no professional guidance:
1) The seller wants to save money. Cutting out the broker's commission is an obvious way to accomplish that.
2) The seller doesn't trust the broker due to previous experience with others in the industry who were less than honest.
Let me address point 1) much like Kevin did at the end of his presentation:
In all likelihood, you will have to give a rebate to the buyer of about 1/2 of what the broker commission would have been You might eek out a small portion of equity that will most likely be eaten up by the details of finding a qualified buyer, advertising costs, driving to and from showing your property, and other logistical details required for selling your property.
Point 2): Trust is a vital component of doing business. By completing some simple due diligence, it's easy to find one or two reputable brokers that will sell your property successfully. The stereotypical view that a few rotten apples makes the entire bushel unusable applies here.
In conclusion: I included the entire video so you, the For Sale By Owner folks, can critically examine all the real reasons to use a professional to sell your home. Rather than write it all up, I decided this presentation gives you the inside scoop on why selling on your own isn't a good idea.