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Self Listing

About Tim and Karen

For Sale By Owner (FSBO) vs. Realtor Representation

Financial Points to consider

On average, FSBO properties sell for 5% to 15% less because buyers looking at FSBO properties know the sellers are trying to save the realtor fees and thus discount the price accordingly. Also, many buyers considering FSBO are bargain hunters with considerable knowledge of the real estate market. Studies by the National Association of Realtors have for years consistently demonstrated that FSBOs average a lower sales price than when sold by professional real estate agents. A home valued at and listed for $400,000 would have an approximate Realtor commission of $16,000 total. FSBO buyers know this and will offer $380,000. Is it worth the hassle? Consider the following points.

Effectiveness

At Century 21 Foothills Real Estate, you not only hire me to act as your agent, you also get the whole team of 23 agents working for you. By having your home on MLS, you also get the 100+ foothills agents and the 5,000+ Calgary agents not to mention national exposure for your home. Marketing efforts and discussions amongst realtors that have clients looking for specific types of homes is a huge advantage of why you should use a Realtor. When you try and list on your own, you are missing out on at least 80% of the potential buyers for your home.

Time

It takes considerable time to organize and market a home properly. There are huge time commitments involved in selling a property; Taking phone calls and discussing the special attributes of the home, organizing showings, scheduling appointments, client viewings, offer taking and negotiation, legal terms and conditions, qualifying buyers, advertising, and marketing to the widest possible group of potential buyers are just a few of the vast time commitments.

Consumer Protection and Liability

Probably the most serious drawback of a For Sale by Owner is the lack of protection for both the Seller and the Buyer.
All Realtors in Alberta carry Errors & Omissions Insurance to protect sellers and buyers in the event of a mistake or misrepresentation of information pertaining to the sale. If you're selling your home For Sale by Owner, and you mistakenly make an error on the square footage of the property or some other detail and subsequently get sued by the buyer, you have no protection, whereas if you're being represented by a Realtor, the Realtor would get sued.
Realtors are aware of the legal requirements & liabilities to both seller and buyer if certain things are not done properly during the sale of a home. Without this knowledge, buyers may end up inheriting some serious and costly issues which they will either end up being responsible for, or which the seller may be liable for.

Security Risk

Letting people into your home without being accompanied by a realtor may place you, your spouse, or your children at a security risk. Also, thieves sometimes go through FSBO homes in order to scout for valuables. Using a Realtor greatly reduces your exposure to a security risk.