Century 21

7 Things For Sale By Owner Companies Don't Want You To Know

By Carlee Noel on 17-04-17

Written By Carlee Noel

  1. They charge upfront(in most cases thousands)... Agents don’t.
    When it comes down to it, listing with an agent shouldn’t cost you a cent. Agents don’t charge upfront, our marketing fee only comes into play when results are provided. This gives you an advantage in more than one way. On the other hand, we have heard of individuals paying upwards of $2,000 upfront just for a sign and a spot on a website, only to end up having their house listed and sold by an agent.
  2. They aren’t held to any code of ethics.
    Real estate agents across Canada are held to a strict code of ethics by CREA (Canadian Real Estate Association). They take the liability if something goes wrong. They are also held to higher standards in advertising and they have duties to you as a client.
  3. They actually petition agents to sell their houses.
    After years of bashing the profession, certain for sale by owner websites are now calling on agents to come to their rescue, so they can take credit for selling homes. Tell me another business model where you ask your competition to do the work for you. This is really an admission of one thing- serious buyers go to an agent. Why? Because it will cost you nothing to buy through an agent.
  4. They don’t have a real estate license.
    This is something a lot of people do not realize. These socalled “private sale” websites are just that. They are not licensed to trade in real estate or to give you any real estate advice. They can’t even advise you on how to price your property because doing this would fall under an agency relationship ad would be considered trading in real estate. That requires a license. These parameters are set in place to protect you, the consumer.
  5. You pay them so you can do all the work.
    Since these companies are not licensed to trade in real estate, they are not permitted to represent you in a real estate transaction. This means they can’t answer buyer inquiries for you, show your home, host open houses, handle paperwork, mediate negotiations, advise you on the market conditions… and the list goes on and on.
  6. Private sales carry a stigma and uncertainties that make buyers feel uncomfortable.
    Ever gone to view a private sale as a buyer? Then you know it can be extremely uncomfortable and limiting to view someone’s house with them in it. It can be even more uncomfortable to negotiate with them. On top of all this, private sales beg the question, why didn’t they use an agent? Is there something wrong with the house? If they are trying to cut costs now, did they cut costs/corners with repairs?
  7. Agents don’t dislike for sale by owners.
    These companies would have you believe that agents think FSBOs’ are ignorant, but this isn’t the case. We get why you would want to go this route. It can be done, but just because you can do something, doesn’t necessarily mean you should. Like many DIY projects, you are putting yourself at risk. In this case, you are taking a risk with the biggest investment of your life. It will not be an easy process. In the end, in today’s buyers’ markets, you need an agent who will work tirelessly for you to get your home noticed above the many others on the market. Just remember that limited service will always equal limited results and if it seems too good to be true, it is more times than not.

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