“Fizbo” Why not?
What is a FSBO? As most know, a FSBO (For Sale By Owner) refers to the sale of properly directly through the owner rather than with the assistance of a professional real estate agent/broker. I completely understand a property owner wanting to receive the highest price possible, as well as receiving the most monies after all expenses. That is the hope for all who look to sell property, but it does not always entail the highest net proceeds from the sale. Navigating through a sale with showings, negotiations, paperwork, inspections, appraisals, and a preferred close date and possession, also have the same significance and importance.
There is another aspect of property selling that should be considered. The Multiple Listing Service (MLS) serves the interests of sellers by assembling property information and distributing that information to MLS participants who have buyer-clients actively seeking to purchase property in the area served by the MLS. The MLS benefits consumers by facilitating aggregation and evaluation of numerous factors that can affect a property’s fair market value. MLS information facilitates preparation of appraisals, comparative market analyses, and broker price opinions that help consumers ascertain a property’s fair market value. Sellers often rely upon those valuations when setting listing prices; buyers use them when making offers to purchase. Those valuations are especially useful when they include information about comparable properties, including sales prices, days on market, and property conditions. Not using and withholding that market information from the MLS hinders consumers’ ability to receive useful estimates of value. There is market information that Realtors and the MLS gather that cannot be determined sight unseen by computers.
There is also the opinion that Realtors just drive around in fancy cars, put a sign in the yard, and then expect and collect big commission checks. Having 15 years’ experience in the northeastern Ohio real estate market, I have found overwhelmingly that Realtors work extremely hard, for many hours of the day, 7 days a week, and for not as much money as the consumer may think. There are commissions to split with other cooperating brokers and varying costs to consider.
It is a property homeowner’s right to enter into the real estate sales market without a professional, but I do not understand why someone would. It would be like going into a courtroom without a lawyer. It would be like going into surgery without a surgeon and specialist in that field. Homeownership can be one of your most important financial assets. There are so many factors to be taken into consideration, and there are so many things that can go south quickly.