Sunday, June 5, 2016

For Sale by Owners Dangers of Self Representation

HouseKey Real Estate services include, Flat Fee MLS listings ( Here ) minimal service , Full Service Traditional Service for a $1995.00 Flat Fee paid at closing (where I represent the seller) ( Here ), and Broker Contract Assistance for Missouri Buyers and Sellers interested in a real estate transaction. ( Here )  Our services are available in all of Missouri but our MLS membership is limited to the Southern Missouri Regional MLS.

This is of particular importance because the vast majority of all homes that are sold in Missouri and in the United States are sold by Realtors®. If you put a For Sale by Owner " sign up in your yard and  a Realtor® brings a buyer and an offer, you may be at a significant disadvantage by representing yourself without professional guidance. If you try to sell ‘For Sale by Owner’ with no Realtor® involved you could be setting yourself up for a real expensive education.

It is understood and common knowledge that Buyer's agents represent their buyer's interest and will not look out for your ( For Sale by Owner's"  best interests. Realtors® can and at times will be extremely aggressive, can be skilled in contract negotiations ( Only comes with real experience), can show you biased comparable market analysis, can work you into agreeing to their buyers offer, can have you agree to unfavorable terms by the mere fact that buyer's agents often add ‘additional terms’ to the contract that are not traditional or most important that they are more knowledgeable in the contract terms and can use your lack of knowledge to favor the buyer because thats who they represent. Also they can  possibly lose you valuable marketing time by locking your house up in a contract taking your property off market ‘contract pending’ because you have engaged an un-qualified buyer. Some lender approvals are not worth the paper they are written on  and only a experienced local broker will know which lenders offer credibility to getting to the closing table. All of which may cost you thousands of dollars in time and money.  None of this includes extending your liability beyond the sale.

The purpose of this is to show the benefits of representation by a qualified experienced broker who knows the ins & outs of what agents do when representing their clients, let my experience work for you and try my Full Service Flat Fee Traditional Service for $1995.00 paid at closing. ( Here )

In closing, you don't give up control having HouseKey Real Estate represent you as a For Sale by Owner. You will gain professional representation. The cost of the upgrade from Flat Fee MLS to traditional is low and the benefits that you will receive are significant.

You will receive:

100% contract-to-close representation by HouseKey Real Estate LLC
Inspection report review, consultation, and addendum, if needed- This can be tricky! Experience counts with Home Inspection repair requests.
Title recommendation and closing
HUD review
and More..

How does For Sale by Owner Flat Fee MLS work?

How a For Sale by Owner Flat Fee MLS Listing is different From a Full Service Realtor® in Savings.

In a standard traditional real estate transaction with a Realtor®, the seller agrees to compensate the Realtor® a percentage of the sale price, typically 6%-7% plus a small transaction fee for a house listing. The Realtor® then places your property in the Multiple Listing Service ( MLS ), offering half(3%) of their commission to any agents that finds a buyer for the property.
In a For Sale by Owner flat fee MLS listing, the owner will pay a broker like HouseKey Real Estate a flat fee in advance to place your listing into the MLS. This is called "Fee for Service" and Housekey Real Estate will still offer the 3% to any agents who find a buyer, as required by most Multiple Listing Service boards. The savings would be in the form of 3% of the sale price, minus the fee you paid up front.
Our For Sale by Owner program is different than most because we are local brokers in the Springfield/Branson area and we actually come to the property and meet with you and go over your goals and selling objectives.
Our FSBO Flat Fee MLS fee is just $495.00 and you can see more information HERE

The Savings Can Be Great Depending On Your Home Sales Price!

If you were sell your home for $150,000, using a Realtor® you would have to pay $9,000 in commission, $4,500 to the Listing Realtor® you listed your property with, and $4,500 to the agent who found a buyer for you.
If you used Housekey on a flat fee listing, your commission owed would be $5,590, $495.00 for the flat fee MLS listing paid upfront then $895.00 paid at closing , and $4,500 to the agent who found a buyer for you.
By using a Housekey Real Estate flat fee MLS service instead of a full service traditional agent, you would save $3,110

Find a Buyer Yourself, Keep you Buyer's Agent Commission!

As an added benefit, many flat fee brokers, including Housekey Real Estate, let you keep the 3% commission a buyer's agent would receive if you found a buyer yourself. Most full service Realtors® would keep the full 6% commission for themselves in that situation!
We will help you with our Broker Assist Program to handle the paperwork for one low price! See it Here