There is a pretty clear reason why 80% of FSBO’s (for sale by owner sellers) end up hiring an agent to sell their home. Buyer agents are reluctant to show this type of listing to their clients. Even when buyers want to see these types of properties, they are often “steered” away by their agents. I know – that’s not cool.
You don’t have to take my word for it either. It’s right here in black and white on the cover of The Philadelphia Inquirer Business section. In this Houwzer featured article, Squeezing Out The Seller’s Agent, Jody Dimitruk, a Berkshire Hathaway real estate agent said:
“If we see something that’s in the MLS that’s not through a regular broker, we’re apprehensive about showing it.”
Houwzer is a full-service brokerage with agents (yes, real human beings), just like Berkshire Hathaway, so those comments do not apply to us, but it does speak directly to anyone listing their home as a For Sale By Owner.
Buyer agents shun FSBO listings for two reasons:
First, the industry is entrenched in an out-dated 20th century compensation model. If FSBO sellers were permitted to become the norm, 50% of the commission revenue would shrink. FSBO sellers are swimming against a powerful tide of big name brokers who work collectively to protect their revenue ecosystem. Even still, the FSBO market makes up at least 10% of the overall marketplace.
Second, FSBO sellers are considered inexperienced and difficult to deal with. They are perceived to have an unrealistic expectation about the value of their home, potentially making negotiations overly onerous and unpredictable. Buyer agents don’t want to spend extra time extracting information including tax bills and deeds, as well as educating sellers on the process every step of the way. Sellers who are unfamiliar with negotiating practices and disclosure protocols may cause unnecessary liabilities for all parties involved.
We created Houwzer for people just like you. You already believe that it shouldn’t cost 6% to sell your home, and you are willing to take on the burden to of selling your home to back it up. Well, speaking of backing up your beliefs, we have you covered. The really good news is we also take all the burden from you.
We’re the industry’s first full service brokerage to list homes for free. That’s right, you save the entire 3% listing commission and still get the full service you deserve from an expert real estate agent.
How do we do it? Houwzer earns money by representing buyers. Our real estate agents are paid salaries and customer satisfaction bonuses, not commissions. We did away with that misaligned commission structure that often pits agents against the best interest of their customer. This enables Houwzer to operate much more efficiently than traditional brokerages, and at the same time, fully align with the best interest of our customers.
So you see, you don’t have to go it alone. Download this comparison chart to see how Houwzer will save you time, money, and heartache vs. using a FSBO service.
