Most F.S.B.O.’s will place a listing into a website similar to Zillow, while this does give the seller’s some exposure,’ sellers soon realize most of it is picked up by Real Estate Brokers looking to convert them into a listing and the phone calls start coming. They then learn that their listing is not supported by IDX ( Internet Data Exchange) and are limited to only that website and are soon berried by other listings by other Real Estate companies. Whats important to understand is these sites are also Real Estate Agencies that access MLS listings through IDX and simply allow FSBO to post onto their websites. The primary difference is theses websites don’t practice Real Estate the way that typical companies do, rather than having several brokers secure buyer/selling clients to generate revenue, they are making their revenue by selling lead generation and advertising to other brokers. The examples of this is the tags on the the listing page with brokers contact info. and the “Contact an Agent” link where most buyers believe they may being connected to the listing broker, they are actually connecting to a broker that paid for that service and are with a completely different company. I have received several calls where the buyer on the line said, you told me ext, and I had to explain to them that we had never spoken and why they are miss informed.
My experiences is that after a week or two on theses sites the seller will add to their post “Will work with or Courtesy to Buyer Brokers”. Problem with this is 90+% of buyer’s work with a Buyer Broker and are finding other properties they are interested in through syndicated websites linked into the local MLS. Before a Broker will shows your property to their buyer’s, he/she will contact you to get a commission agreement and if you don’t offer one or your competition is offering a higher commission, they more than likely are going to encourage their buyers to go another direction or as several brokers are doing today getting their buyer’s to sign a Buyer Broker Agreement, where the buyer’s are obligated to use that broker when buying a home and if not, the buyer’s are responsible for the commissions, problem here is most buyer’s after down-payments/buyer’s closing cost and inspection fee’s, just don’t have the funds.
F.S.B.O. Vs Broker Representation – Most sellers that deiced to do For Sale by Owner have convinced them self that they can maneuver most aspects of the sale process and what they do not know, escrow will help them with. A quick fact, escrow is a third party entity that owes a Fiduciary responsibility to all parties and will not provide any advice one way or the other. With that being said I am good with it, this is why I offer my Basic and Plus Packages that do not include Broker Representation, where my Full Service Package does.
Listing Agency Relationship – What 99% of other Brokers will not tell you about when taking a listing, there are two ways of listings a property in Oregon and they are marketed on the listing agreements with a check box, usually without discussion and the listing agreement has no definition or explaining of what they mean), The two types of listings are “Exclusive Agency” and “Exclusive Right to Sell”
Exclusive Agency – An “exclusive agency” listing allows an agent to list and market your home, guaranteeing them a commission if the house sells through any licensed real estate agent, (unless the listing agent/broker has forfeited the listing side of their commissions, usually done by offering a Flat Fee Listing Agreement) It also allows sellers to seek out buyers on their own and pay no commissions if a buyer’s agent/broker is not involved. Most real estate brokers will not inform the seller of this option during a listing presentation and in most cases their agency will not allow them to take these types of listings, because there is the potential of no commissions being paid. At Shelby Real Estate PC, Basic and Plus package listings are “Exclusive Agency relationships“.
Exclusive Right to Sell – An “exclusive right to sell” your property does not mean that there will not be other agents involved. Your agent is the listing agent and the most important part of his or her job is to market your home to other agents who work with buyers. Those agents will show your home to their clients. Regardless of who sells the home, even if you find the buyer yourself your listing agent will earn the commissions that was agreed to in the listing agreement. Shelby Real Estate PC Full Service Listing Service are “Exclusive Right to Sell” relationship.
The simple solution is to build into your sales price a Buyer Broker commission, be competitive in your sale price and list your property on the MLS using Shelby Real Estate PC’s Flat Fee Listing Service and get the maximum exposure possible with the level of service you desire.
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Shelby Real Estate PC. is a privately owned real estate company Licensed in the State of Oregon that does not sell or share your information with any other individual or company. “Guaranteed” we are simply trying to earn your business while saving you thousands of dollars.
All information deemed reliable, but not guaranteed and subject to change without notice.