FYI-FSBO NEWS LETTER
For Sale by Owners AKA FSBO's have a new ally in the fight to control their own destiny
THE ANSWER TO THE QUESTION - WHY AREN'T YOU USING A REALTOR ?
Thousands of Canadians are grabbing the “Bull" by the horns and taking control of the sale of their own homes!. Nation wide real estate has increased 20—30% since 2000 but the cost of listing with a real estate agent has either increased or has been unchanged?, 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.
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With the banks paying less and less interest on our dollar & investment returns are below 5% how smart is it to agree to give up to 6% of your homes value to an agent.? What do you receive in exchange for a real estate agents commission? “not much" Most FSBO clients have described their experience with agents as “limited". “He came out to the property to sign the listing contract, placed a sign in our yard, and we never saw him again!, “that is, until it was time to renew our contract. We decided to go it alone. We sold our home on the internet using your site.
The real knock of realtors is a bit of simple economics that many people don’t understand. Whether you're buying or selling, they rarely work in your interest. For buyers, a realtor may seem like a dream “ a free home finding chauffeur" but is the service free? The sellers have likely factored the agents commission into their price. Also.. Its in the buyers agents best interest to have the buyer pay top dollar for the real estate, after all...the higher the selling price the higher the commission!
What about sellers? They know only to well the service isn't free—they’re stuck paying the commission for their own agent plus the buyer’s. But their agent really isn't interested in seeing the seller get the best possible price. Instead, that agent’s incentives favor a quick sell, at any price. Look at it this way . “Lets say you’ve listed your home for $290,000.00 and you owe $150,000.00 of that to the bank, leaving you with $140,000.00 in equity. The home may well sell for $290,000.00 in a few months. But if the agent can persuade you to sell it for $270,000.00 in a few weeks he is better off to have forgone only $500.00– $600.00 in commission while saving a great deal of time . That deal , though, will cost you $20,000.00 in equity, and up to 6% on the total selling price, not only your equity?
