MYTHS - For Sale By Owner

"I'll save money on commissions" Not usually. Buyers
see"FSBO" as an invitation to reduce their offer by 6 or 7 percent,
knowing that you're not paying commissions. They also feel -- and statistically,
they're right -- that most FSBO's overprice their property beyond the neighborhood's
established market value.

"We're getting lots of lookers, and some
of them say they may call us back." Of course they do. Nobody looks a seller
in the eye and says "It's all wrong, you won't be hearing from us."
Your yard sign may get lots of calls to see the house. But the fact is, a much
lower ratio of unrepresented buyers are qualified to buy. On the other hand, when
an agent shows a buyer client your house, you can be sure that buyer is a qualified
prospect. Agents don't waste their time and gasoline driving people around to
look at houses they can't buy. The lesson: Even if you don't list your home on
the MLS, offer a competitive commission to buyers' agents; their cooperation is
well worth the cost.

"I know how to negotiate for the best price."
Really? Better than someone who makes his or her living orchestrating real estate
transactions -- probably doing several of them every month? The fact is, most
For Sale By Owners never get full market value for their home -- and remember,
that's despite the fact that most of them overpriced the property to begin with!
Do the math, and it's easy to see where the problem lies.

"I know the
selling points of my home better than an agent could." Not likely. You know
your home itself better than an agent could, but it's doubtful that you know how
to sell it better than a real estate sales professional. In any case, it doesn't
matter. Because the chances are you won't get many opportunities to try. Buyers
are reluctant to bring out and discuss objections with the owner because of the
personal element involved. They don't want to put the owner in the position of
defending his own home. So they just smile and say, "We may be back,"
and you never hear from them again. But if the buyers are working with an agent,
they'll voice their dislikes to the agent, and the agent will know how to counter
their objections with salesmanship. "Yes, the colors are wrong, but remember,
paint is just paint." Or, "Yes, I know you wanted one more bathroom,
but at this price you could afford to add one." This is one more reason to
offer an attractive commission to buyers' agents -- and to stay out of their way
while they show your home.

Like UFO's, it seems that FSBO will always have
some determined believers who put faith in it because of a few extraordinary stories
they've heard. Still, the evidence is overwhelming that For Sale By Owner is not
a realistic way for most people to achieve their time and money goals when selling
a home.

It takes time for logic and statistics to trump an attractive myth,
but eventually common sense will triumph. If you don't believe me, I'd like to
sell you a ticket to El Dorado. You can stop off at the fountain of youth on your
way