Why 'WeLists' and 'For Sale By Owners' Fail - The Real Story
Most homebuyers do not want to negotiate a "private" deal with the seller. Since the services of a Realtor are generally free for a homebuyer, most potential buyers use a Realtor and the MLS. This is why most buyers are not interested in FSBO's and WeLists.
- Only 10% of FSBOs sell their home successfully within three months
- 84% of people who try to sell their property on their own eventually choose the services of a real estate professional to sell their listing (source: NAR 2004)
- 80% of all For Sale By Owner buyers and sellers surveyed indicated they would hire a real estate professional for their next transaction to eliminate problems experienced (source: Inman News 2006)
Homeowners see a real estate associate/realtor put a sign in the front yard, they see ads in the newspaper, they see the Realtor holding open houses and they see the online listing of their home.
So when attempting to sell by owner, homeowners copy what the Realtor does. They put a sign in the yard, hold an open house, run an ad in the paper, and put their house online on some site that very few people ever visit, much less buyers from the local area.
And they wait. And wait.
What do real estate associates do differently? Motivated Realtors do things that homeowners DON’T see and don’t even think about. Firstly, they put your home on the MLS and MLX service. Secondly, they market a home aggressively and they target the large group of buyers who don't want to deal with private sellers. Lastly, they promote your home to other Realtors who have willing buyers. This results in a large amount of exposure and interest in your home, which leads to it selling for top dollar.
Buyers that respond to the classifieds and WeLists are usually investors or people looking for a deal. Some are unruly and will haggle the sale price down tens of thousands of dollars.
Using a Realtor to sell your home opens you up to a much greater market of homebuyers that use realtors and real estate companies, rather than the small number of individuals who want to try a private deal by themselves.