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The Real Tea
The Real Tea
WTF is a FSBO and Why You Should Use an Agent!
Thinking about listing your property yourself as a For Sale by Owner (FSBO)? Grab your cups and get ready for the tea on the pros and cons of using an agent or selling yourself!
Welcome to The Real Tea podcast! We're Jillian and Catherine Hyde, Vegas dwellers and real estate sellers. Want the real tea on realty? Let us pour you a cup. Learn all about the ins and outs of Las Vegas and how to set yourself up for financial success. Thanks for tuning in. Let's sip some tea. Hi, and thanks for tuning in. You probably saw today's episode title and thought and WTF is a FSBO and I just recently learned that can be pronounced as FSBO. So obviously, I don't know anything but we have Catherine an expert. Tell us what a FSBO is
Catherine Hyde :A -- FSBO, FSBO stands for for sale by owner it's a property that's been listed for sale by the owner.
Jillian Hyde :Right and so that is kind of a controversial idea. Um, why is it smarter for a potential seller to list with an agent rather than themselves.
Catherine Hyde :The bottom line we will make the most money
Jillian Hyde :Right, because you guys have the most experience,
Catherine Hyde :we have the most experience in all the aspects that the transaction will have to go through it. Really when somebody puts the property up for sale on their own, right, it's because they want to save the commission. Sadly, people think realtors make a lot of money and when they see 6% 5% 7%, whatever that amount is, to large amount that it seems like just the lump sum that goes to someone that you don't know what they did with it like what they've learned. However, statistically speaking, when you compare the number of sales, or any particular sale, sold by a by an owner to it the same a similar property sold by an agent, the agent sold property always makes the most for the seller.
Jillian Hyde :Interesting. Okay, and so, obviously you said 6% in commission. How does it work when using an agent
Catherine Hyde :What do you think you should do? The agent you retain the agent to market your home. That means put your home in, in front of the greatest pool of buyers, ideally qualified buyers. So that requires marketing, which includes photography, advertising, print, digital media. And then once we have enough buyers that are interested in we have offers, then the job goes into the negotiating for the seller side because as the listing agent, we represent the seller centrist or job is to negotiate the bottom line for the seller
Jillian Hyde :and to benefit them in the best way possible. Yes, you're fighting for them. And so as you said, obviously, agents would have a greater greater resources to market the property and I know you uniquely have a very aggressive marketing tactics. So what is uniquely to you I know us have like 3d tours. Tell us more about that.
Catherine Hyde :We before the property before anything even happens. We analyze what has been happening with its comparables with the competition, right? And we come up with a marketing plan. And we determine the type of photography that we're going to do, where it's going to be disseminated. We spend money up front creating a lot of marketing collateral. So yes, we do 3d tours, they're pricey. We then spend money to host these 3d tours and then distribute it, right. Print marketing and things like that print marketing advertising, we invest in unseen technology like retargeting. We want that house to be in front of as many buyers as possible. We do direct mailing, just old fashioned stamp in the mail to try to generate a buyer. And so once once we identify the way we're going to spend our marketing dollars for this house, we deploy it and Then we monitor the results so that we can get an offer quickly. Ideally, the property sold within the first two weeks. Now let me backtrack a little. You don't pay us the owner, you don't pay for any of this. That's the money that we're investing on the marketing out of our own pocket. When you sign a listing agreement, you agree to pay us a commission, which is always negotiable. There's no standard. And what that agreement says is you will pay us when we sell the home. So while we're creating all of this marketing material, while we're spending time and money, developing all of it, we're not getting paid at
Jillian Hyde :no cost to the seller.
Catherine Hyde :None. Not. It's what we're investing to get the property sold. And it's the properties of course do go into the multiple listing service where members have that and MLS the MLS, and we do that just like everybody else, but we go above and beyond doing so. Right. We may have a buyer to state we want to be able to have them walk through the home. That's nothing fancy unique. You have
Jillian Hyde :actual people who are looking to purchase a home that you can pair them with the seller, right?
Catherine Hyde :Yes. So it's a benefit of having been doing this for a while and having a steady book of business, we do have a nice buyer database that we present our listings to. Absolutely.
Jillian Hyde :And so that's actually good to hear. And what's also unique about hiring an agent is that the valuing of the home can be more accurate, more fine tuned for the market. So let's talk about that valuing home is extremely important,
Catherine Hyde :right, because we could overpriced the home, and that could immediately cancel it out, you know, not even presented in front of certain buyers, right? buyers tend to purchase in brackets, I'm going to purchase between 250 and 300 303 25. And if we were thinking I'm gonna price this property at 415, even though the comps say it's probably worth 395, because you think oh, then they're going to write me an offer and then they're going to talk me down. That may not necessarily happen.
Jillian Hyde :Right? And so let's talk about days on market. You don't want it being too long on the market. And that's also what's convenient an agent they oftentimes can get it sold fast.
Catherine Hyde :Right? valuing the property is incredibly important to get the most results in the shortest amount of time. Because we otherwise we would lose that window of opportunity, right? A home that's been overpriced and it's going price reduction in price reduction becomes old, there's inventory and you see the fresh inventory. It's like old baked goods. Nobody's gonna look at you don't
Jillian Hyde :say old cupcake,
Catherine Hyde :or a fresh one, right? And that age on market, like sadly with anything, it stigmatizes that property, there's a reason why that house hasn't sold something's wrong with it right or that sellers. not realistic, you know. So, buyers make assumptions based on that we want again to sell it quickly. And and well priced in the shortest amount of time. That's why we take again today Before we even put it anywhere,
Jillian Hyde :right, and so,
Catherine Hyde :under pricing homes basically even worse than overpriced, right? So you'll hear somebody put my house on the market myself. I didn't pay a commission and I sold it in two days. Okay, great. But did you leave money on the table? Did you really price it? Well, it's our job to price the property accurately so that we earn our living, and so that you get the most dollar for your home. underpricing could be equally hurtful if you're just giving somebody 10 grand of equity that you didn't need to
Jillian Hyde :write and that's actually good to hear a realtor isn't looking to just sell your home. They also have something to gain from giving you the best price on the home.
Catherine Hyde :realtors only get paid at closing. Right We don't perform. We've lost money in that transaction.
Jillian Hyde :Yeah. So they're in no way trying to swindle you or anything they especially you Know you fight for every single deal. So that's definitely unique. And yeah, it's just beneficial because the pricing of a home is extremely important because it can make or break the deal. Hmm, absolutely. And so, let's talk about the internet. A lot of people think, Oh, well, I can just post something online and sell that house easily. Is that true or no?
Catherine Hyde :One would think the truth is, we are social beings. we're negotiating with individuals. We're talking about the market. No, it's not as easy as putting it on the internet and it's good soap. It requires a little bit more marketing and understanding of the customer and the temperature at any given time.
Jillian Hyde :Because the internet is also extremely saturated with homes. So it's definitely about making your home stand out because we are in a how many people live in this valley to 3 million, almost right There's a bunch of homes here. So you need to make yours stand out and an agent has those research impressions matter. Yes. Right. Okay, so we'll talk about selling houses that difficult. Can you do it online? Or what does that really entail? Why would you need an agent to value the home if you could just google what other houses are going for?
Catherine Hyde :Because you when you Google, or when you do when you see like a Zillow estimate, or an AVM that's been generated by some other automatic valuation model, sorry. Those are computer generated numbers. It's based on an algorithm. And the thing is when something sold, you don't know if it was something sold between family members, or between entities, or if it was an arm's length transaction if it was a short sale, if it was a foreclosure if there was some sort of duress or whether there was some sort of contribution. So for example, you may pay five 50 for a property where it most of them are selling for 530 but it's because the seller helped you with $20,000 and assistance or repairs or whatever. So there's there's a little bit more viewings that that could help us adequately price that property.
Jillian Hyde :And essentially to sell house yourself. You have a lot to do you have to stage you have to market you have to negotiate he it's a lot. So just going with an agent seems to be the simpler solution. And obviously, you can interview agents, you don't need to go with the first person you see. Absolutely.
Catherine Hyde :Yeah, like with anything interview. Two, three individuals, check out the reviews speak to their past customers. Check out their volume and transaction. There's the right fit for someone, you know, negotiating tactic, the type of marketing that they do. You should interview
Jillian Hyde :Absolutely, yeah. And this is all not to say that selling home by yourself isn't possible. It's just Make it easy on yourself. Use an agent. I mean, they benefit from helping you. So there are no really necessarily any cons. You should definitely vet them. It you know, do your research, but it's just a simple solution. Absolutely. Well, that is all the tea we have today on fizz bows and I hope you're not like WTF anymore and you're just like omg Yay. Listing with an agent. So thank you, Catherine.
Catherine Hyde :Thank you, Jillian.
Jillian Hyde :Thank you for listening to today's podcast. Want more Real Tea? Hit subscribe and leave us a review. Check out Hyde Real Estate .com for more real estate opportunities. And as always, stay thirsty.