<span style='color:brown'>Dee Dee, the FSBO's that seem to be proliferating are, to me, a result in the lack of real service provided by most real estate agents. After all, what do you get for you 6%-8% commission? A listing on the MLS, a sign in the yard and maybe one or two on nearby corners, a listing on the internet, newspaper classified ads, and the occasional open house. The ONLY thing the agent can exclusively offer is the MLS, and people scanning the internet can find you just as easily.
I can see the time coming when there will be few sellers brokers. The buyers will hire a broker to conduct property searches, negotiate, and assist in arranging financing (maybe). I bet sometime in the not too distant future a home owner will be able, for a fee, to list a home on the MLS without a contract with an agent. If that doesn't happen through the MLS, it won't be long until an enterprising broker will do a "sellers listing" for $200-$500 with advice and additional services available for a fee. There will be no commissions offered....such commissions will be negotiated between the buyers agent and the buyer.
And this is where I foresee the bulk of future residential appraisals originating.....listing valuations. The guy thinks his home is worth$100,000. For a fee, do an appraisal, verify a good listing price....more a band of value as in "This home will sell between $95,000 and $105,000. Depending on the motivation of the seller, it will take between an estimated 45 and 120 days exposure to the market."
The home owner can place a newspaper ad on line for $30.00+ per week (to be run in sundays edition for 6 weeks), can order a couple of nice signs from his local sign shop (complete with graphics) for about $50.00, and can hire a listing broker to answer the phone, prescreen the callers, and show the home for $1,000. Compare that to the $7,000 (7% commissions) realtors are asking in my local market. Add a few specialtiy services (open house hosting complete with banners, signs, handouts and hors d'overs, fax braoadcasting, etc...say an additional $500), the guys pends less than 2%-3% for marketing expenses.
But having been active in Real Estate for 20 years, I see the reduction in the use of the sellers agent in the very near future. There will be some activity in the relocation business, and there will be some activity in the fee agent, but commissions? I just don't see it lasting for many more years.
And a buyers agent SHOULD be fee based rather than a commission based person. If I were getting paid on commission, and I was looking at a home with a band of value of $95,000 to $105,000, I would either be cutting my throat getting it for him for 95, or I would be failing in my job if I get it for him at 105.....I would rather see a flat fee.....Looking for a home in the $100,000 range? My fee is $800 to $2500 depending on the degree of difficulty for the house. (If a guy wants a geodesic dome in a high end neighborhood, we may have to get it built for him.....). I discover his needs, I locate several homes that match his requirements, I preview them, I show them, I negotiate, and I assist with finding financing and with the paperwork.....and I need FSBO listings as well as MLS listings.</span>
