How can I encourage realtors to show my FSBO house?

Question

After six weeks on the market, excellent open house traffic, complements galore, but no offers, I am starting to think that the only way to find a serious home buyer is through a buyer's agent. How can I get buyers' agents to show their clients my house when there are so many listed houses right now?

I have already been in contact with an agent whose buyers dragged her to our open house when they were supposed to be looking at a house across the street. Even though we were one of the clients top picks and we have offered to pay commission to her (nothing specific yet), she seems to be discouraging her clients from purchasing our property. Will this be common? Also, how can I let realtors know that they are welcome. I have just added the information to my website and to my flyers. Should I advertise this in the paper as well?

Listing is not an option, as our realtor (as buyers) looked at the numbers and said there just isn't enough room to pay the full 6% commission.

Answer 1

Most agents use only one source to find homes for their clients, the MLS. This way they can truly compare teh properties for their clients, have easy access to tax records, etc. They aren't out reading your flyer unless they are thinking about recruiting you to open a listing with them. Sorry, but that is how it is.

You can get away with listing with a "helper" agency, it cost about 5k. Sometimes that is pretty darn close to 3%. From there you have to at least offer the standard 3% to the buyers agent, more helps.

Also, remember that the agents are going to hesitate because they know they are going to get stuck with 100% of the mountains of paperwork, as wellas make sure you do all of the inspections/disclosures. etc that go into selling a home. Most FSBO have no clue what they are doing and it will be that poor agent who will be nailed to the wall if you do anything illegal in the sale because they are the ones holding the license.

Also, just because someone ohs and ahs over your house does not mean poo-poo, certainly not "top picks". We are culturely conditioned to compliment each others children and homes in the US. The comments would be entirely differant if you were not hovering about. Since you seem to know what what said between the agent and the buyer I think I am correct, you hover about.

If you do nothing else, STOP HOVERING!! People will not be able to talk to each other with you breathing down their necks. It makes people uncomfortable. Let your house sell itself and stay back when people are looking. Even good agents know to give the buyers space to look on their own.

Answer 2

How many open houses have you had?

Have you been asking for names and numbers of those who have been there at the open house?

If you did, have you called those buyers who gave those compliments galore and ask them what they didn't like about the house?

Ok, about the Buyer's agent.....I'll let you in on a little secret about agents and For Sale by Owners. Agents do not show FSBO's because they know their commission will be low and not a guarantee. Also, unless they are the listing agent, they have no control over the transaction.

The reason is not because there is so many houses on the market, its because you were led to believe, or thought, the process would be quick.

Yes it will be common for the Buyers agents to be reluctant to show your house.

You can let Realtors know that they are welcome by offering to co-op with them.

Is your website being targeted to the right market?
Where are your flyers located?
Do you have a virtual tour on your website or just pictures?

Believe it or not the best advertising is when the Buyers aredriving around. Buyers usually do not check out the local paper, but they love to drive at all hours around the developments and neighborhoods to see how they are (family, well lit,noisy,quiet,etc)

By the way, a listing agent who doesn't want to list a house because of the numbers are doing you a disservice. Even though he is acting like he is saving you 6% commission he really isn't.

Here is what I suggest you do. You can send me your website address so that I can see what you have on there. After I see it, I will make you a virtual tour that you can use on your computer to show or to send to people. You can also buy cd's(cheaper than an ad in a paper) and put them with your flyer, or hand them out.

Don't worry I will do this free of charge as a courtesy to you.

Answer 3

The vast majority of open house visitors and potential buyers will say nice things to an owner. Occasionally you will get the crass people that will tee off on every little thing they don't like, but that is certainly not the norm. I have taken clients through a house when the owner was there and they say glowing things, only to tear the house apart on the way to the next showing.

Everywhere you are advertising, put a blurb in that you will cooperate with Realtors. Either a percentage or a flat rate. Some Realtors shy away from FSBO because once a Realtor is involved, the seller wants the Realtor to do all the work, and they can be very, very challenging to work with.

You may want to ask your Realtor if she will take a reduced rate to sell your home, if it comes to that.

Answer 4

You should offer the buyer's agent a 3% commission and then note that the settlement will be handled by whichever real estate attorney you choose. By all means, advertise everywhere that buyer's agents are welcome. I might even drop some of your FSBO flyers off at your local real estate offices with a note about the commission.

The market has tanked in many areas and it's hard to sell homes - I know because my home has been on the market for a few months with few showings and it's at a great price. Good Luck!

Answer 5

Perhaps you could find a Realtor who'd be willing to take a reduced commission just to list your house and put it on the MLS without spending tons of money on flyers, newspaper ads, ads in homes magazines, etc. 6% typical but it's not non-negotiable.

A 6% commission allows me to do tons of advertising, but if you are willing to cut back then suggest a lower commission. If your agent won't do it, find someone who will. I would gladly take a reduced commission as long as you didn't expect me to spend the same amount of money marketing your home. I obviously can't take a listing where I'll lose money on the deal.

I have a client in the same boat as you right now and we negotiated exactly what she would get for her 4.5%. She's getting reduced services for her reduced payment. It's working out just fine for us.

Answer 6

We sent post cards to the top sales agents in the area. We told them we would pay 3% commission if they found a buyer. (You could offer 2.5%) and we put an expiration date on the offer. We ended up selling our house this way and we paid the 3% commision. I would also put it in your advertisement in the paper, too.

If the realtor truely has the best interest of their client in sight they should agree to your offer to pay the commission.

Answer 7

I agree with "Bostianinmo". However, I wonder if there isn't something you aren't learning about the buyers thoughts about your home, i.e.,feedback? Is there an issue they aren't telling you?

In today's market, your home has to be the cream of the crop in all aspects. If you didn't paint, do it throughout, if you have pet's, well neutralize as much as possible, did you smoke in the home? That's a biggy, the only way to counter that one is to paint with Kilz, then paint a neutral color and don't forget to scrub all woodwork. Get rid of furniture, pictures, knick/knacks - in general stuff you don't need to use everyday. Clear and organize. You could consider having someone come in a "stage" your home for better showings. Spending a few hundreds dollars will most likely save you a lot of time and time is money.

Good Luck!

Answer 8

If an offer of a commission doesn't motivate them there's little else that you can do.