Wednesday, November 16, 2005

Debunking the do it your self myth con't

In Answer to some of the questions I've received, I hope this helps. If you have any ideas or thoughts to add to this I'd love to hear them (this is in continuation of my original "debunking" article):

  • You know that sellers who sell themselves have as high or higher risk of liabilty. Of course they don't consider this. Hower it is a reality in this litigious soceity and should be something they should consider. There are people who will prey on people who do it themselves, only to run them through the wringer and courts afterwards, just to get more out of them because they know they can.
  • If you see a FSBO or a do it "yourself" company take a picture of the sign. Keep an eye on it and take a picture of the house once it has a Realtor's sign out front. Create a "before and after" type brochure, track how many go with an agent afterwards. An amazing amount of money, time and effort is wasted that the seller does not get back. It's as if they are selling their home for 7-9% commission rate in the end, because of their marketing costs.
  • Do they want a buyers agent to get access to the 95% of the properties that aren't selling on their own. I wonder if they ever think about missing out on the majority of buyers who don't notice their sign or their little ad?
  • If they do sell it on their own, do a CMA on it and see how they did in terms of actual market value. They likely sold under it. If you can put a few examples of this together for the next seller you sit down with, they may see the logic in dealing with you.
  • Don't be discouraged if they aren't smart enough to realize the net effect is less money to them and increased risk to their equity.
  • If you compare MLS inventory levels with MLS sales to do it your self inventories and sales on a monthly basis. You'll be suprised to find that in Edmonton the MLS inventory is 2.5months, and the do it yourself inventory is about 5 months

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