Realtor.com Vs. ForSaleByOwner.com

First I am a Realtor so certainly bias. The facts are a professionally marketed property sells nationally for over 14% of "By Owner" sales. These properties also sell 2 to 3 times faster but, is the cost of 6% of the sale price justified?

In Florida there are numerous disclosures and requirements that by law have to be followed, so a realtor is also a little bit of a lawyer. To keep my license I am required to pay for and attend on going education so I am prepared to protect my clients.

I am an independent contractor so pay all my personal expenses, have to carry a premium insurance policy, all taxes from medicare, Social Security and unemployment.

Unfortunately there are relator's that see this as a hobby, so like any service one is going to pay for you should do some research, the right agent is more then worth their fee. Keep in mind 1/2 of the 6% fee is paid by your agent to attract a buyers agent. The fact is after all costs, fees and expenses your agent will most likely make about 28% of their fee, so on a $4,000 fee the agent will realize about $1,120.00

I personally invest in each of my listings, like most agents my company puts the listing in the MLS system, which results in several other sites such as Realtor.com and they install the sign, unfortunately there are agents who do no more then this. I take out full page ads in several publications, pay for an enchaned website that results in numerous additional sites like the New York Times, have a direct mail campaign to key rental areas, see your property is exposed to locations such as military bases and cater a Brokers Open so full time agents know your home. This is just some of the benefits a professional agent brings a client.

How effective are the "Sell by Owner" concepts? I tell anyone considering this to first go to the site and do a search of homes like theirs in the area. They can then send each an email, just ask them if they would recommend the concept. You will find depending on the site many of the listings do not exist and those that can be reached the majority will be working with an real estate company due to little activity from the concept they elected to try.

Last I have found most homeowners have no idea what is involved or required to sell their home. They plant a sign, hope a buyer finds it and if by chance they get an offer do not know how to proceed.

This is a true story. A "By Owner" after 3 months and lowering their price to an "AS IS" sale got an offer. It was a little less then they wanted but they took it. Between the owner and buyer they drew up a contract, the buyer did a home inspection and came back with a list of repairs they wanted completed, so much for "AS IS" the sellers not wanting to start over agreed to the repairs and made them. The day before closing the buyer backed out of the deal. I listed the home and sold it in 3 weeks for over $17,000 of what they had accepted.

Russ Foley of FL 8:21PM November 18, 2008