FSBO or FSBO on MLS issues . What are the RISKS and RED FLAGS - For Sale By Owner issues
Are you thinking of selling your most expensive asset (your home) without a professional Realtor?
FSBO - For Sale By Owner issues in Newmarket, Bradford, Aurora, Richmond hill and surrounding areas.
What are the RED FLAGS for a FSBO - What are the RISKS for a FSBO - What will it COST a FSBO should something go legally wrong - How much can I loose from my value in a lawsuit - I'm I getting the right market activity and advise daily during my listing as a FSBO - Will Agents and Buyers come to my FSBO property and make an offer. - Am I insured - Etc.
Let's examine these issues affecting FSBO and FSBO on the MLS.
Selling a property is a legal transaction. Are you qualified to sell Real Estate in Ontario? Selling your property in Newmarket or Aurora area might seem easy to a few property owners being mislead by some FSBO websites telling you can do that online and on your own. Yes you might get lucky and some are, but what are the legal issues that can return years later. Yes we can also be Doctors, Teachers, Lawyers, Bankers and a Realtor online.
"RED FLAG" for FSBO and FSBO on the MLS.
Some Sellers are tempted to try a For Sale by Owner (FSBO) transaction because Newmarket, Bradford and Aurora community is in the midst of a sellers' market and they think they can sell easily without any professional representation.
Others want to try the FSBO on the MLS websites that still want you to pay a fee to list on the REALTORS ONLY MLS, and tell you to cooperate with Realtors working with buyers by offering a 2.5% of the sale price to have them bring their buyer to your property. So you can save the 1% to 2.5% you pay in addition to have your own agent to represent your interest. That sounds like an online sales pitch and do-it-yourself gimmick.
FSBO on MLS want to maximize profits and avoid paying for any Full Service Brokerages representation legal fees, advice fees. Just to avoiding the additional 1% - 2.5% for proper legal protection under the Real Estate Act, with insured representation. I would think having my Realtor seeing the market from the inside as it happens by the minute during the listing period of my property, would be of great value to me, and he/she can advise me daily accordingly. Selling a property is no joke its a legal matter and if something goes wrong...what then...what will it cost the FSBO..alot more than 1%-2.5% to have it properly done.
"RED FLAGS" Homeowners obviously know their homes better than anyone, but that doesn't mean they're the best legal Real Estate advisor, salespersons, and negotiator for their properties.
Buyers work with professional Realtors because its " FREE ".
Buyers receive FREE Legal advice, legal in house mortgages service and up to date market sales in the street and area figures affecting any property. All must be fully disclosed to the Buyer by Realtors, including current legal Real Estate guidance, shown properties when they want to see them, not when the FSBO can make it. Buyers will move on to see other properties if its not available to show within the house hunt blocked time.
Did you know that all SERVICES TO MY BUYERS when working with me... IS AT NO COST ! If you were buying a home today and a Realtor told you "My services to a buyer is FREE" Would you say NO as a buyer? I want to go it alone just like a FSBO?
Lets look at the Legal side and the professional Realtor:
Professional Realtors have: Legal knowledge to Sell Real Estate - Up to date training on all Real Estate Laws and matters - It is required in our industry to have a full update every 24 months to maintain a Real Estate licence with insurance.
What is updated yearly as a professional Realtor:
Legal documentation: Yearly new documentation and legal clauses. Disclosures procedures: Fact findings, proper disclosures, Steps taken to protect our Clients (Sellers and Buyers) from lawsuits -Updates in the REBBA (Law Act) - Yearly Insurance renewal - TREB data access renewal - Land registry access renewal and so on...
What are our Obligations and Duties to a Buyer as a Realtor.
"RED FLAG" Legal and Disclosure issues affecting FSBO on MLS
The average home is around $600,000 in Newmarket, Bradford and Aurora. How much does a $600,000 lawsuit cost if there is a major problem with a FSBO property? Who is to be blamed? FSBO may be faced with Up-front deposits to a lawyer, additional lawyers cost to hiring new advisors and professionals to help FSBO..etc etc... What is the final cost to you the FSBO?. Are you insured as Realtors are to deal with any errors and lawsuits?
I've have recently read about a FSBO in the $100,000 - $150,000 range lawsuits. What do you think a buyer will say when there is a major problem with his new property and he relied on your word and his Agent to help him buy a home with no issues....hummm. Hold on, where did the problem come from, you! Who will the FSBO look for advice at that time...call your lawyer ok...there are several cost to that and so on...get the point!
FSBO websites is just a listing platform with online tools, and charges you a very high fee to advertise on their website, and to use their online documents etc. When the buyer comes knocking and has a major problem after a few months or a few years later, and now want a legal fix that may cost thousands. (Keep in mind it's also his most expensive asset) You sold him FSBO without proper representation, guidance and insurance to Sell Real Estate in Ontario.
As a professional Realtor we avoid ALL Legal problems for our clients.
Who AVOIDS FSBO or FSBO on the MLS when representing a Client? Keep in mind that some professionals may AVOID FSBO on the MLS listings all together when advising their Buyers about properties in the area. Due to the lack of legal and accurate information provided by the owner or legal issues that may put their Buyers, themselves and their Brokerage into a situation of serious legal risk. They are not dealing with a professional and should have known that when a lawsuit is the only way to fix the problem.
Wouldn't you want to avoid ALL legal problems and any future issues as a Professional Realtor? That is the key to my profession "Avoiding legal problems now for myself and my clients"
As a Registered Realtor in Ontario I'm insured for such errors should they ever happen during the daily course of my business. FSBO ARE AT TOTAL RISK for 100s of thousands of dollars... Being fooled and wasting time on FSBO websites can be misleading by marketing gimmicks. These websites will not change the standards in FULL SERVICE BROKERGAGES WITH MLS vs ONLINE MLS LISTING FSBO. Buyers searching for a home wants to be educated about value and all issues first, before making any offers on a property. They want to see it all. That's why they work with professional Realtors and not just look at online listings to make an informed buying decision.
FSBO success rate shows 2% to 3% in North America
98% of FSBO return to hire a Professional Realtor after the market has been stagnant for them. It is very difficult to regain some of that value lost from time already on the MLS as a FSBO listing. The Buyers that looked at the property listing with their Realtor may now be reluctant to return if re-posted with another agency. THE RED FLAGS are up again!
Re-listing with another agency is not a good plan for any property if you want top market value, which can be more that the 2.5% you will pay a professional to help you. Buyers may say...How many times have we seen that property listed? The MLS listing database for each property has a list of historical activity, it stays attached to that property for years and should never be considered gone and can be pulled up by any smart Realtor. Your property information on the database is always there. Buyers that have already seen your property on the MLS FSBO, have now moved on to purchase others without FSBO RED FLAGS issues. That same Buyer could have purchased your property for at top dollar, if only these RED FLAGS could have been avoided from the start.
As your Realtor, I am fully insured and have local knowledge of the property market to guide all my Clients, advising to a maximum return of property value.
How many agents does the FSBO WEBSITE network have to offer you?
Our FULL SERVICE BROKERAGE will save you the headaches. We are not just an online Brokerage. We have 8 offices in the area and 141,000 Agents worldwide in 61 countries all selling of your property. Your property is top priority within my Brokerage. Let me help you and your family maximize your property value return, through our various fees and service packages offered.
Why to Sell With a Realtor
Choosing to sell or buy with a professional rather than on your own makes sense for a variety of reasons:
A Realtor has access to market data about recent sales and other homes on the market that can be used to price your property well. Studies show that homes priced right when they're first listed sell more quickly and for a higher price than those that linger on the market such as FSBO.
A Realtor can show your home when you aren't available, can respond to inquiries from potential buyers and their agents faster, and can get valuable feedback from visitors – all things that save you time and effort.
A Realtor can look at your home objectively and suggest ways to improve its appearance – by staging and minor repairs - so it appeals to more buyers.
Buyers typically prefer to look at a home without the seller present so they can feel more comfortable talking, exploring rooms and visualizing themselves in the property. At an FSBO sale, the seller must be present when he can and may not work for the buyer.
A Realtor can screen visitors to your home, which provides a measure of safety that FSBO sellers don't have. In addition, by checking to see if the buyers are legitimate and can afford to purchase your home, a Realtor can help you avoid wasting time showing your home to unrealistic tire kickers.
Realtors are professional and has many tips to improve your sale. They have current data and contacts with other Realtors who are currently work with buyers, and the support of a brokerage that can market your home more widely than you can as an individual working with websites that are not networked to anyone.
A Realtor can help you negotiate contracts, not to only garners you an appropriate price for your home, but that meets your needs for a settlement date and perhaps includes a period when you rent back your home from your buyer. In addition, a Realtor can make sure your contract is in compliance with all local regulations and all disclosures.
FSBO or FSBO on the MLS Dangers
Most buyers today work with a buyers' agent to represent their interests. If you choose to sell your home on your own, you'll be negotiating with a professional and relying on your own skill to finalize a contract. Not only could you end up selling your home for less money, you could leave yourself wide open to potential legal problems unless you have the insurance to cover your errors.
FSBO transactions can be successful, of course, but 90 percent of Sellers prefer to work with a professional the first time rather than risk an unsatisfactory home selling experience.
Call me JOHN KENNEDY for a FREE HOME EVALUATION - I can serve you from any one of my 8 offices in Newmarket, Aurora, Bradford, Richmond hill and surroundings. We have various MARKETING PACKAGES and fees of our services to maximize your return.
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