Why sell For Sale By Owner?

At the end of the day i don't think its about the money.

i don't think the fsbo is really that .

its about self reliance. that feeling of Independence that I can do this, I don't need an agent.

its not rocket science. there are only 5 steps i selling real estate

pricing

marketing

showings.

negotiating

in the past marketing was expensive you needed newspapers magazine, billboards.

but now with the Internet, costs have essentially gone to zero.

you can now have a Microsoft virtual tour for free. 

Google base, Trula, Zillow. its all on line and the consumer knows that, they are not stupid.

but there is one last piece. 

the MLS

or Multiple listing service.

the Department of Justice  recently passed a hearing to free up the MLS for sites such as Trula and Zillow. but the Realtors still control who gets in.

without an agent you can't advertise on MLS and therefore you cannot be there. untill now.

Jason is wrong part 1

Jason is wrong

Yes I’m talking about you Jason Preston. Lets see how far we can take this meme.

Everyone loves free. It is a Marketing term. And Yes Google is making money of advertising. They are an advertising company first and foremost. But to the public they are in the search business, and email.

Mark Cuban brings up a scary yet true point. The blackswans will come and eat away at your business. But is Twitter really doomed? What about brand equity?

If there is one company that does brand well its Apple. The perpetual underdog. The Innovative darling that delights customers despite paying 3x as much. They are not free, far from it. I actually switched back to PC after college because I couldn’t afford a Mac. Though I do have plans of switching back soon…

They built their company on being the best and most expensive. The Ferrari of the PC’s. and now its paying off. Their prices are dropping, and now they could give the iphone away for free and make more money from app sales.

A FREE Iphone? Now that would Chris Anderson smile.

Google has a great business model. Twitter doesn’t. But Black Swan Bing is hot on its tail. Just try the image search, you’ll be surprised.

More to come in part 2

Are Real Estate Agents anti Competitive or just Lazy

I was looking at the Department of Justice website.

EVEN THE GOVERNMENT HATE REAL ESTATE AGENTS

Its amazing. They have ariticle talking about how Agents are being anti competitive with other discount models.

I've pasted the article, but if you want to go to the site here is the link http://www.usdoj.gov/atr/public/real_estate/models.htm

Competing Models of Real Estate Brokerage

Traditionally, real estate brokers have performed virtually all services related to buying and selling a home, including:

• Marketing the home.
  
  • Marketing services include listing the property in the local multiple listing service (MLS), placing advertisements in local media and on the Internet, and hosting open houses.
    
• Reviewing contracts.
  
  • Contract review might include providing advice on pricing, home inspections or other contractual terms.
    
• Negotiating with potential home buyers and sellers.
  
• Locating potential properties for prospective buyers.
  
• Arranging for prospective buyers to inspect properties.
  
• Providing prospective buyers and sellers with pertinent information about a community such as relative property values, most recent selling prices, and property taxes.
  
• Apprising potential buyers of financing alternatives.
  
• Assisting in the formation and negotiation of offers, counter offers, and acceptances.
  
• Assisting with the closing of the transaction.
  
  • Closing services might include assistance with handling paperwork.
    

For these efforts, real estate brokers typically charge a single fee (the commission) that is 5 percent to 6 percent of the sales price of the home.
Learn more: The Seller's Agreement with the Listing Broker

Other options available to consumers

In many parts of the country, the traditional full-service real estate broker now faces competition from a variety of real estate brokerage models, many of which use the Internet to reduce costs:

Fee-for-Service Arrangements

Brokers willing to sell a subset of real estate brokerage services, often called fee-for-service brokers, have emerged throughout the country. Fee-for-service brokers "unbundle" the package of real estate services typically offered by traditional full-service real estate brokers and charge a set or hourly fee for specific services, such as listing the house in the MLS, negotiating or closing contracts, and pricing the home. These brokerage models typically enable consumers to save thousands of dollars by allowing them to purchase only those services they want.
Learn more: Fee-for-Service Brokers

Rebates and Inducements

Some real estate brokers have increasingly begun to compete for customers by offeringcash rebates or other inducements to home buyers and sellers. Rebates that go directly to buyers or sellers lower costs on both sides of the transaction. Cash rebates are usually calculated as some fraction of the broker's commission and can result in thousands of dollars being returned to the consumer.

New business models can save consumers money

Most consumers want to make as much money as possible on the sale of their home and spend no more than necessary when purchasing a home. In many cases, the standard broker's commission can offset a portion of the equity value that has been building up in a seller's home or push the price of a home beyond a buyer's purchasing power. Consumers who want to perform some of the steps involved in selling a home can reap significant financial savings by purchasing only those real estate brokerage services they actually want.

Just as the Internet has made it easier for consumers to save money by directly purchasing plane tickets and stocks, it is now making it feasible for home sellers and buyers to do more of the work themselves and pocket the savings.
Learn more: The Internet's Role in Real Estate Brokerage

A message to Homeowners and FSBO's

Dear Homeowner,

As a real estate agent for over a decade I have seen every type of transaction.

I've seen sellers and buyers leave the closing table happy and content. And I've seen some not so happy.


Real estate agents often with good intentions can get in the way of the transaction. Often times their motivations are different from that of the seller.


For this reason a lot of sellers today prefer to go it alone and try the FSBO route ( For Sale By Owner)


However due to circumstance a lot of FSBO's fail to sell, and end up hiring a realtor and paying out 6% of their equity.


Why do they fail?


First and probably the most common is PRICE. Sellers just don't know how important pricing their home is. Instead think that testing a higher price is smart because they can always come down. Instead they prolong the sale and cause buyers to become cautious when making an offer.


Also the buyers that do make an offer to FSBO's are often bargain hunters looking for a good deal or at least to buy your house discounted the 6% commission. The real serious buyer are looking with an agent.


And that brings me to the most important point: MLS - Multiple Listing Service. It is the holy grail of real estate. If you're not on MLS you're not on the market. MLS is critical to the sale of your home.


When I was an agent, the only way you could get on the MLS was through me. I had the key. I had all the secrets, I knew how to price, how to stage, how to sell. And I made much money with my secrets.


Despite my success, I saw that some people were not happy. Particularly FSBO's. After much thought and reflection I decided to leave the real estate industry and start Freeltor.


Despite all the hatemail I've been getting from my former colleagues, I know that Freeltor is helping people with their Home sales without ripping them off.


Freeltor is lets you into one of the most gaurded and sacred tools of the Agents: the MLS.


Most people pay tens of thousands just to get on the MLS. But Freeltor is offering it for free.


Freeltor is the only company that allows you to list your home for free. And despite the cries from real estate agents, we are not going to stop.


Freeltor revolutionizing the real estate industry. We are on the side of freedom, free information, free MLS, and free selling.


The line has been drawn, are you with the Freeltors or the Realtors?


CEO & Founder


Adrian Manzano