FSBO vs MLS pricing

7 Replies

How come all these folks who are selling via FSBO seem to price their property on craigslist the same as the asking price one would ask on the MLS with an agent? Don't they know that they would have to pay the buyer's and seller's agent 6% of the contract price if they sold via the MLS. At least this much should be subtracted from their asking price if they are trying to sell FSBO, given they won't have nearly as much advertisment and nil representation. How do you approach the FSBO seller in negotiating, to tell them nicely that they cannot be pricing a FSBO the same as it would be priced on the MLS.

I find that most people do not understand the details of the transaction and trying to convince them of it is a waste of time.

FSBO's are trying to Save the costs of the commission, Not automatically Give it to the buyer.

Originally posted by @Neil Aggarwal :

I find that most people do not understand the details of the transaction and trying to convince them of it is a waste of time.

 I hear you on that. But, I would think that wholesalers make a living doing precisely that on a daily basis.

Originally posted by @Wayne Brooks :

FSBO's are trying to Save the costs of the commission, Not automatically Give it to the buyer.

 Has that been your experience? Because I feel like realtors wouldn't make a living if that was the case, Wayne. Because all the advertising they provide must be worth something.. (hence the commissions).  Then a seller wouldn't ever use an agent to sell their $600k house only to give $40k to the agents. That's just my (newbie) 2 cents. Your thoughts?

Many property owners have not conducted research about the comparable sales prices of properties similar to their own. Often, their research is a perusal of the for sale ads in their local newspaper.  

Convincing a FSBO to list with an agent or to accept a lower price from a wholesaler is an uphill climb at best. Keep in mind that a homeowner can sell their property for any price they want, but whether the market responds to their price is the problem the will have to resolve.

There are many different approaches an investor can use to work directly with FSBOs.  Offer to solve a problem for this type of homeowner.  If you'd like any more suggestions, check out the forums that discuss FSBOs.  I am also happy to offer recommendations on creative approaches to this specific type of seller. Best success to you. 

Originally posted by @Victoria Winters :

Many property owners have not conducted research about the comparable sales prices of properties similar to their own. Often, their research is a perusal of the for sale ads in their local newspaper.  

Convincing a FSBO to list with an agent or to accept a lower price from a wholesaler is an uphill climb at best. Keep in mind that a homeowner can sell their property for any price they want, but whether the market responds to their price is the problem the will have to resolve.

There are many different approaches an investor can use to work directly with FSBOs.  Offer to solve a problem for this type of homeowner.  If you'd like any more suggestions, check out the forums that discuss FSBOs.  I am also happy to offer recommendations on creative approaches to this specific type of seller. Best success to you. 

 Sent you a PM, much thanks!

A property is worth what either someone is willing to pay or what a mortgage company is willing to lend. The whole reason to sell FSBO is to pocket the 6% for yourself. Why would anyone bother to FSBO if the only benefit was to discount to the buyer?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here