The TRUTH About the Real Estate Sales Process
The Smiths want to list their $500,000.00 home with a traditional full service agency, so they invite a local real estate agent whose extra-honest looking face they saw on the bus benches around the neighborhood, to come over and explain the process of selling a home to them.
The real estate agent explains that the cost to sell the home with full service will be approximately 7% on the 1st $100,000.00 and 3% on the balance. In this case, with a selling price of $500,000.00, the fee paid by the seller will be around $19,000.00 plus tax, or approximately $9,500.00 plus tax to each agent involved when/if it sells.
The sellers agree, and the listing agent secures the listing with some clever talking points about the scary pitfalls of selling a property, and then goes through the seemingly complicated MLS® System paperwork with the seller(s), explaining the mysterious and "so-called" complicated process of selling a home.click to read more
If the real estate agent has done their job right, they will have scared the Smiths into listing with them, and blown them away with promises of bringing in multiple buyers using their unmatched & clever marketing schemes, that only they know the secret to.
In securing your listing, the real estate agent is now eligible to receive around $9,500.00 of the equity of your home when the buyer(s) and their buyer agent show up and complete the sale.
During this visit, most agents will lay the groundwork for what the role of the "real estate agent" will be during the sale of the property. They will also explain what the expectations of the "seller(s)" are during the sale of the property.
The role of the listing real estate agent is to help facilitate the interaction between the buyer agents who are making inquiries about your property, and you, the seller. This is also when the actual work of selling the home kicks into high gear for the seller, meanwhile your agent is just waiting for a buyer to show up.
At this point, your real estate agent is "waiting" for an inquiry from the buyer's agents - any buyer's agent, and you are "waiting" for a call from them to let you know that there may be a buyer's agent bringing over some buyers tomorrow at say, 6:30pm.click to read more
We say "may" be coming over because there are often changes to schedules when unexpected things come up, and since there are so many people involved in the process when you list with a traditional full service agency, it is even more likely that there could be a schedule change.
The role of the "seller(s)" will be to make sure the home is clean and ready to show, sometimes with very short notice. The seller(s) will also need to make themselves scarce, (meaning everyone - including pets) whenever the property is being shown by the buyer's agent. Many people also take their valuables and other personal items with them each time they make their house available to strangers as well, which is another inconvenience for the seller(s).
With For Sale By Owner, you are present when the buyers come over, even if they are coming with a buyer's agent representing them. You don't have to leave your home, and in fact, 90+% of our customers insist on staying nearby during the showing.
When the real estate agent who listed your property receives a question about it from a buyer's agent, the agent will not always know the answer to the question they are being asked.
Here is a typical scenario:
The Thompsons are working with a buyer's agent and they have a question about a listing they found on REALTOR.ca.
They call their agent and they ask them the question.
The buyer's agent seldom has the answer to a question about a property they know very little about, so they will then call the listing real estate agent and ask them the question on behalf of the buyers.
The listing real estate agent will then call the seller and ask them the question, or they will leave a voicemail if they don't catch them. Some of the more advanced agents might even text or email the seller the question.
At some point, whether it's right away, several hours later, or even the next day, the answer to the question(s) is given to the listing agent.
The listing agent will then call the buyer's agent and give them the answer to the question, or they will leave a voicemail if they don't catch them. Some of the more advanced agents might even text or email the buyer's agent the answer.
The buyer's agent will then call the buyer(s) and give them the answer to the question, or they will leave a voicemail if they don't catch them. Some of the more advanced agents might even text or email the buyer the answer.
In the scenarios discussed above, if at any time there are messages left by voicemail, there is also a call back to whoever left the message.
When you list your property with For Sale By Owner, the calls & questions come directly to you, and your answers are not being filtered, downplayed, embellished, or outright misinterpreted by 2 additional people who are acting as high paid buffers between you and the buyer. The main takeaway here is that the seller is doing most of the work to sell the home, and the agents are literally getting in the way of the sale.
So, the question becomes - why would anyone want to insert 2 extra people into the sale of their home, AND pay them thousands and thousands of dollars each while they're at it?
The TRUTH is that both agents in the scenario used here know very little about your property, and they work less at selling it than you do. Period.
This is the main reason that property owners are now looking for a better, faster, and more streamlined way to sell their home. Technology also plays a major role, BUT, saving tens of thousands of dollars on the sale of the home remains at the VERY TOP of the list for most sellers.
REMEMBER - nobody knows your home better than you do!
Enter, For Sale By Owner Inc. - Canada's True Commission-Free For Sale By Owner Selling System!
For Sale By Owner is Canada's original FSBO service and was launched in Edmonton in the spring of 1997.
See what you can save when you sell through us.
See what you can save when you sell through us.
ENTER SELLING PRICE
(Based on 6% on first $100,000 and 3% on balance)