Real Example How listing in MLS benefits Zillow FSBO
We love helping FSBO sellers who list their property on Zillow achieve several primary goals: Generate Immediate exposure, Get several offers from pre-qualified buyers and Close escrow on time. Let me show you how we accomplish these goals for a home seller.
Please meet: 819 E 4th St APT 4, Long Beach, CA 90802
This condominium was listed on Zillow.com FSBO section for about one month and there was not a single request for showing from prospective buyers or Realtors.
So, why buyers or realtors weren’t showing this or your property listed “For Sale By Owner”? There several reasons and they are listed below:
- Reason #1: 99% of Serious and mortgage pre-approved buyers work with the Realtor, and Realtors DO NOT CHECK Zillow FSBO section for properties to show.. Where do they look? You guessed it right – in the MLS. Why do they look in MLS only for properties to show? Because every MLS listed property clearly shows amount of compensation to buyers agent – they will not risk bringing their buyer to FSBO and potentially loose on their income because FSBO seller not paying Commission
- Reason #2: Even if the buyer requests their Realtor to show them FSBO property, that Realtor would make EVERY POSSIBLE EXCUSE for NOT SHOWING FSBO property for the same reasons described above.
As soon as we listed 819 E 4th st #4 in MLS with 3 % Total Commission (buyers and listing agents sides with Buyers agent receiving 2%) we got 3 requests for showing within 3 hours after entering it into MLS.
Our office keeps 1.5% and we give buyers agent customary 2% . We clearly indicate that in MLS.
See, these days 99% of QUALIFIED buyers ( meaning pre-approved for a mortgage or verified CASH buyers with verified initial deposit) work with the Real Estate Agent.
That agent does a lot of very useful “free stuff” for them – advice about approval for a mortgage, schedule showings, calling for availability – asking if the house is for sale or already in escrow, driving them from house to house (sometimes for months), writing up a contract, performing negotiations, accompanying them at the home inspection and so on.
Since your house is listed only on Zillow or Trulia, AND it is NOT listed in the local MLS – Multiple Listing Service – (the ONLY service used by Buyers agents when searching for the homes for their clients) buyers agents simply UNAWARE that your house is for sale.
Furthermore even if their client tells them about the house they found on Zillow.com or Trulia.com in FSBO section they would be hesitant to show it to them because of uncertainty about BUYERS AGENTS COMMISSION.
See, when buyers agent looks in the MLS for homes to show on the weekend, they clearly see the commission seller offering either as a percentage or a dollar amount (customary between 2 and 3% of the sales price).
Now in case “For Sale By Owner” they dont know if the Seller offer ANY compensation to them for all their hard work they put for several weeks working with buyer.
They would need to contact the seller, negotiate a commission, sign listing agreement with the seller and on top of that to deal with a DUAL AGENCY they just created – basically they have to be equally loyal with their fiduciary duties to both parties.
According to survey, 90% of “For Sale By Owner” sellers are prepared to pay 2.5% commission to the buyers agent, so we help you to get into MLS and start showing your property by offering you our listing agreement with total of 3% commission for both buyers and listing agent. And that extra 1% for our representation could be added to the price of the property, netting you almost the same amount of money as if you were selling it yourself.
Do you want to get showings to qualified buyers, exposure to local Realtors and several good offers on your property?
If you answered “YES” then we need to talk! Give us a call at 310-691-4868 and lets sell your property!