For Sale By Owner
Although the vast majority of real estate that's traded in Canada is done through organized real estate boards, there are still some cases where the homeowner tries to take on the complex task of selling their home by themselves. This scenario is called a For Sale By Owner, or FSBO (fiz-bo) as it's known in the trade. The homeowner focuses solely on the idea of saving what they perceive to be a large commission, making the assumption that this approach will help them come out ahead on the transaction. They lose sight of the many ways that it pays to use a professional sales representative. In actual fact, this tunnel vision approach can end up costing the seller far more than any commission they save.
 A real estate professional can market your home to a vast number of potential buyers in a variety of ways. There's a lot more to marketing a home than simply placing a sign on your lawn or an ad in the paper. Targeted direct mail, posting on board listings, internet promotion, referral networks, newsletters, community events, and open houses are just some of the elements your Coldwell Banker real estate salesperson may use in developing a customized marketing plan that's right for you. And by showcasing your property to a far greater number of prospective buyers, you stand a far greater chance of selling your property at a price and terms that are better for you. Cutting yourself off from these prospects simply cuts down your chances of getting the best possible price for your home.
Have you ever stopped to consider why a home buyer might be motivated to purchase a home that isn't marketed through a professional real estate broker? After all, the property isn't being marketed by a company that's well versed in the process and is fully aware of the rights and obligations due to the buyer. Instead, it's being marketed directly by the homeowner, an individual who due to their own personal interests or their lack of experience may not represent the property accurately. So why then would a home buyer want to deal with a FSBO? Simple! They are trying to save the commission too. So, if both the buyer and the seller of a FSBO are trying to save the same commission dollars, who really wins?
Remember, as a seller working with a real estate professional, you are in the driver's seat and you pay only for results. If your home does not sell at a price and terms that are agreeable to you, then you pay nothing. The real estate agent absorbs all the costs incurred while marketing your home, including advertising, signage, posting on the Internet, MLS fees and more, regardless of the outcome. All things considered, it's not what you pay in commission that really matters, it's what you come away with as your net profit after the sale is complete. |
