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FSBO Myths

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There  are many misconceptions of selling a home FSBO, so here are a few myth busters:

Most FSBO Properties Eventually List With a Real Estate Agent

False. Our hundreds of satisfied customers can attest this is simply not the case. In fact, we have had a number of properties that first listed with a real estate agent and after many months of not selling, made the switch to FSBOFox and sold their home. View our Success Stories for more proof.

FSBO Homes Sell For Much Less Than Real Estate Agent Properties

False. This is one of the most ridiculous claims that real estate agents make. Homes sell for what they are worth period! Some real estate agents will go as far as to make the claim that agent listed properties sell on average for 40% higher than FSBOs. Keep in mind this is data compiled by the National Association of Realtors who gives no details on how they even got these numbers. On top of that, their numbers are misconstrued as million dollar plus homes greatly drive the average up. Most millionaires are not concerned with paying agent commissions thus a small number are sold FSBO. For example say you have ten FSBO homes that are worth $200,000 and that all sell. The average sale price is $200,000. Conversely, take nine $200,000 agent homes and one $1,000,000 agent home and all homes sell. The average sale price on them is $280,000 (9 * $200,000 = $1,800,000 + $1,000,000 = $2,800,000/10 = $280,000). Now if I take those numbers and tell you that agent listed properties on average sell for 40% more than less than FSBOs, it's probably misleading my customer.

My Agent Saves Me Money on Legal Fees and Paperwork

False. Your agent doing legal paperwork for you would be illegal; this is why there is always a lawyer present at the closing. Whether you use an agent or not, you pay for the legal fees, they are usually wrapped into the sale of the property. The only difference in using a real estate agent is that they pick your lawyer for you. Wouldn't you rather choose your own attorney? Or if you don't already have an attorney, FSBOFox can usually recommend one.

It’s Free to Use an Agent to Buy a Home

False. Does the agent charge you any fee directly if you are the buyer? No, but you greatly reduce your negotiating power and may very well pay more for the property. For example: say you are looking at a house in which the seller's bottom line is $200,000. Your offer of $200,000 may get rejected because when you subtract a 3.5% buying agent commission from the $200,000 ($7,000) the seller only ends up getting $193,000 for their home. To meet their bottom line, your offer would have to increase to $207,255 (3.5% of $207,255 = $7254). You end up paying $7255 more for the property then you had to.

Showing Your Own Home is a Pain

False. Showing your own home allows you to do it on your schedule, not the real estate agents. If your agent has an appointment in the middle of the day while you're at work, you're most likely going to have to leave work to go straighten up your home before the appointment. If the appointment is when you are not working, you have to leave your home for a few hours (along with your pets) and find something to do while the home is being shown. Neither of those situations seems more convenient than just showing it on your own.

An Agent is the Best Way to Price Your Home

False. Ask any agent how they price your home and it is simple, they look at recently completed sales of comparable homes in the area. The thing is, anyone can do this. This data is freely available on the web via county assessor websites. Most county assessor websites now days even have a "Comparable Search" feature that makes this easy


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