All agents are the same.
False. Each agent independently operates under a broker, meaning that his/her license is held by a broker, however their business conduct and marketing strategy will differ. Some companies that are incorporated restrict their agents from specific advertising. All advertising an agent does must be accompanied by the company logo. Some companies will not allow the logo to be placed in certain non-traditional advertising, resulting in limited marketing that may be extremely beneficial to specific homes.

Further, the real estate industry is highly competitive and over 90% of new real estate agents fail and are out of the business in less than two years. Many new and veteran agents work full or part time jobs in addition to real estate. Many sellers discover after a listing expired that their agent wasn't full time and many feel that had they been involved with a full time agent, their results would have been better.

All commissions rates are the same.
False. You have options. Generally commissions are tiered and are based off the purchase price of your home. Full service companies typically charge a slightly higher rate. However, the rate should be justified by the additional services offered on your specific home. Commissions are generally negotiable, depending on the company, services and agent.

I can list my home on the MLS.
False. Unless you're working with a REALTORŪ, you are not listed in the MLS. In order to input to the true Columbus Ohio Multiple Listing Service (MLS), you must be a licensed REALTORŪ and pay dues to the National Association of REALTORSŪ and Columbus Area Board of REALTORSŪ (CABOR). There are numerous flat rate fee 'mls' systems online that home sellers subscribe to. In actuality these are nothing more than forums. The companies providing this service warrant nothing, offer nothing and sell nothing. They do collect a fee. Realize that homebuyers typically are not scanning these sites for their new home. Most 'hits' from these are other FSBOs looking at their competition in order to price their own home.

I'm not bound to the same Fair Housing laws brokers, agents and lenders are.
False. Because of this misconception, FSBOs may wind up in litigation prior to even getting an offer. Well-kept documentation is critical in speaking with, or showing your home to any inquirer.

I will save all of the commission by not listing with an agent.
False. Studies show that the median selling price of a sold FSBO home is 17% less than market value. Typically a FSBO will poorly price their home, either too high or too low and wait for a buyer to come. After several months of open houses, paid ads and flat fees pre-paid to list on a private forum, they'll lower the price in hopes of motivating a buyer. Sellers get an idea if they now sell for about 7% less than they original asked, that they'd get a buyer and still not pay a commission. Realize that the buyer pool for FSBOs is extremely limited. Marketing is reaching a handful of house shoppers, and of these, 90% will eventually work through an agent to find their home. Most sellers have a timeframe in which to sell. When they reach that limit anxiety and desperation sets in and they'll take nearly any offer on the table. Selling by owner can also take double, or triple the time to get an offer that a listed home will. This results in additional mortgage, interest and taxes for the seller who's moved on to their new home. Add to this the outside expenses incurred from lawyer fees, inspections, closing costs, title and examination fees. Assuming the heavy burden of conducting a sale without these professional services is begging for future litigation.

I'll get the same service from a limited service company and save money.
False. Today we want choice and change. Much of this new change is trial and error. What seems like a quick out and money-saving opportunity usually results in a failure, worse market positioning afterward and additional costs. Limited service companies that charge flat rate fees do not offer to sell the home. They offer only to list it. Research success rates in comparison to full service companies to determine what's right for your home. Unfortunately, after months with no sale on their own, many FSBOs realize they need a little more exposure and go this route. However, after the listing expires, the seller is no better off than they were before, and if an agent does bring in a buyer to purchase your home, it's an automatic full commission charge. When you consider it closely, a REALTORŪ charges nothing to list your home in the MLS or to put a sign in your yard - in fact, you don't pay until the home is actually sold and transferred and the commission is paid through the proceeds of the sale. No out of pocket expenses! So why should you need to pay $800 - $2,000 for an entry in the MLS and a sign, or a full commission if it actually does sell?

Understand that there's no motivation to sell your home after payment is made. What's prohibiting this agent from taking your prospective buyers through other homes where they'll be offered a full commission for a sale? Read the fine print. Research. Discover this now before listing and being robbed of your cash and your home's value 6 months from now. It's basic - those that advertise price do not advertise service. I've interviewed these companies myself and decided they weren't worth my time or my clients'.

Questions to Consider
FSBO Friend How To
Open House Register
Safety Tips
Open House Tips
Legal Issues
Statistics
Misconceptions