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FSBO Millionaires Use Real Estate Agents

FSBO Millionaires Use Real Estate Agents

We at KCM pride ourselves on the quality of real estate information we deliver each and every day. We try to gather empirical evidence to validate the positions we take. We do not use just an anecdotal story to make a point. We also do not get caught up in the sensationalism of the moment. However, today will be different.

Confusion2Do as I Say… not as I Do

This adage could be no truer today after it has been reported, in a recent Herald Tribune article, that when it came to selling his Florida mansion, Al Bennati, the longtime chief executive of BuyOwner.com, has chosen to list his home with a local real estate agent.

BuyOwner.com is one of many websites out there now that encourage home owners that they do not need to enlist the help of a professional agent to be able to sell their home. They go as far as to tell homeowners:

“BuyOwner.com allows you to reach the most potential buyers in the shortest amount of time, in the most effective (the Internet) and most cost effective manner (no commission!) possible.”

Let’s break down that statement:

Myth #1 – The internet is the most effective way to sell your home

Many have said that, with the introduction of home search on the internet, hiring an agent is no longer a necessity. When the time came to list his own home, Bennati went against his own advice saying:

“To sell a home of this magnitude, it needs to be done by a person and a company that reaches buyers of this caliber.”

Myth #2 – FSBO’ing is the most cost effective solution

Without proper exposure to the “right kind of buyers” your home will not sell. Many real estate professionals have elaborate strategies to get your listing in front of exactly who needs to see it.

The most recent Home Sellers’ and Buyers’ Profile Report from the National Association of Realtors revealed that, though 92% of buyers search for a home on the internet, 90% still use a real estate professional.

This isn’t the first time that a CEO of a major FSBO website has enlisted the help of an agent when the time came to sell their own home. In August of 2011 we reported on Colby Sambrotto of forsalebyowner.com who, after failing to sell his home using FSBO websites, needed an agent to sell his NYC apartment.

And, he got more money!!!!

Bottom Line

Two separate people made fortunes convincing others to sell their home through their FSBO sites. Yet, when it came to selling their own home, they recognized the value of using a real estate professional.

There is a reason the real estate industry has been around for centuries: it performs a valuable service.

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3 replies
  1. Gregor
    Gregor says:

    The best strategy is of course to neither snub the real estate professionals nor forego the opportunity of selling yourself. Especially in a country like France, where brokers will ask up to 10% commission. Here, almost 50% of all sales go around the real estate professionals. But it is true, if your target audience is rich enough and does not care about the extra cost of an agent, they will not be looking at FSBO sites and you need a broker.
    I have my own FSBO website and selling my house, I’m using both Immogo and professional brokers. And this is exactly what I tell my clients.

  2. Pam McCormack
    Pam McCormack says:

    FSBO’s overlook some important and common buyer characteristics. Buyers are typically not comfortable buying a home from it’s owner, (“do I tick this guy off by asking for a 3rd showing or making a low offer?) and often have greater confidence and comfort in the “buffer” of professional representation. Also the difference in price for a seller to use a real estate agent is so miniscule to a buyer over the course of the typical mortgage that it has no priority for them. What other retail product is there where the customer’s wants and needs aren’t the primary reason for the transaction? None.


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