Why there’s room for FSBOs in real estate

by Olivia D'Orazio25 Feb 2015
Like real estate agents, buyers and sellers come in all shapes and sizes – and some of those shapes and sizes are best served by alternative approaches to the business.
“There are some people that come to the table and they have only one question, ‘How much?’” writes Bill Hubbard in the REP forum. “There has to be a company and an agent that services that customer.”
And, indeed, there is. For-sale-by-owner companies and commission-cutting brokerages often attract these types of cost-centred buyers and sellers – which is just fine by most full-service sales reps who believe their services are worth far more than a couple of thousand dollars.
“That customer does not believe in the value as much as price,” Hubbard continues. “In [my] office we have decided that that customer is not our customer. Our customer is one who asks, ‘What value do I get for the fees you are charging?’
“We have chosen the other end of the consumer spectrum to service. We make no bones about it: we are not the cheapest but we are the best.”
Agents in the forum agreed that a great agent’s value proposition is worth the high commission that comes with it. But, as Ruben Lee points out in the forum, it’s up to agents to demonstrate that value.
“If agents are to be financially sound full-time, then I think it's fair to say that whatever they are doing means that they are delivering on their bottom line,” he writes, “and that is providing the pay-worthy services that consumers choose to pay for, whether it happens to be more or less.
“In the end consumers still can decide to pay more or less.”

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