Housing Rumble: Do You Need an Agent? (Day 4)

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Most FSBO are willing to pay the buyer agent commission. So on the $300,000.00 house that keeps coming up and the 6% commission that keeps being thrown around let's look at some numbers. Assume a 50/50 split of 6% gives buyer and seller 3% commission. FSBO is offering to work with buyer's agent (3%). The FSBO is willing to pay 3% of the $300,000.00 ($9,000). The cost thrown out for a lawyer was about $1,000.00 and the cost to get your house on the MLS through FSBO is $1,000.00. Looks like the FSBO user is looking at $12,000.00 to get started. Plus additional costs which I am not an agent so I have no idea what that would be. If the house does not sell in 6 months (which is possible in this market) the FSBO user would have to shell out another $1,000.00 to keep the house on the MLS. As a matter of fact the longer it takes to sell the home the more money FSBO makes......
But back to the numbers. $16,000.00 is the number FSBO has thrown out as a cost to sell the $300,000.00 home with a listing agent at 6%. It looks like the cost of selling it through FSBO is $12,000. How much do you really save when it is all said and done?
FSBO does not care how much you sell your home for. They get paid regardless. The longer it takes the more you pay them.
The agent does not make a dime if he/she can not sell your home and the faster they can sell it the quicker they make money. The more money the agent can get you for your home the more money the agent makes.
Who has the most incentive to sell your home for the most money?
FSBO sites are just a very expensive classified add for the new internet based world.

Winder of TN 7:31PM July 20, 2008

Despite the compelling argument of saving money, the real equation is the current market conditions. When houses were selling in days with multiple offers, a routine real estate transaction could be performed without an agent. But when normal market conditions occur then there is marketing skill needed. That is after all what is being paid for. But beware, most realtors are just doing the minimal marketing. Find an agent that really knows how to market a house using all the high tech and low tech methods available, and it will be well worth it.
Frankly, I think realtors are their own worst enemies, because there are so many that only do the minimal amount of work. These folks should be drummed out of the business. But like anything else, once you have found good people to work with, they are worth more than you are paying them!

DS of FL 12:45PM July 18, 2008

So how does the FSBO know if the stranger calling to see their home is:
1. A serious qualified buyer?
2. Do they know the ramifications of "non" disclosure
3. What is the price if a stranger enters the home under the pretense of wanting to "look at the home" and harms your family. What is the dollar amount on that?
The big argument for FSBO's always is commission- to me there is so much more at stake, and as a home seller prior to becoming an agent, paying a Realtor commission, was the last thing I thought of, I valued all the details that my agent took care.

Jamie Geiger of 1:28AM July 18, 2008

"These buyers can get a better deal on homes, as they can negotiate the commission savings into a lower offer and sales price."
Greg you say that you are saving the sellers the whole commission then turn around in your own words and say that the BUYER can negotiate a lower price...so who is really saving money?

Ken Smith of IL 5:28PM July 17, 2008