St. Louis - Free Real Estate Resources

Beware Of These Common FSBO "Offers" that prey on "For Sale By Owners"

1. "I'll Sell Your House For $2,999"  You may have seen signs along the sides of roads. You call the agent, they come and tell you what they will do for this fee.  Here is what you need to know: Many of the things they will charge you for are available for FREE through this website... and the other services are things that we will do for a comparable fee. The difference is, they will snare you in with this offer with a contract that you sign... and then when your house doesn't sell, they "offer" you the opportunity to purchase their full services that are likely as much if not more than an experienced, professional & effective REALTOR... but because you are "Under contract" your options are limited. Here is what you need to know: We offer many of the services that they charge for on this website for free. All of what they charge for we will do for free or for comparable rates. The difference is we don't try to lock you into a binding contract that your stuck with if the "discount" package doesn't work. We'll be happy to discuss your options up front so you can be well educated when you make your choices... so you can have realistic expectations and the best real estate experience possible with the choices you make.
2. "I'll Put Your House On The MLS For $2,000 or $1,000 or $500 or $250 or $100 or Less ($39.95 is the cheapest we've seen). OK, let's think about this for a minute. Any real estate professional has overhead. Licensing fees, membership dues, professional organizations, technology updates, development & maintenance costs for the MLS etc.  So how does a real estate professional make money listing your house at these costs? The answer is, they don't. In fact, at those rates they are loosing hundreds if not thousands of dollars. They are looking for buyers and buyers are looking at your house. So what incentive do they have to sell your home? The answer is NONE! In fact the longer your house is on the market, the more buyers they are likely to meet and have as clients. Do they want those buyers to buy your house? NO?Doing so means that they would have to do the work of two agents... the seller's agent and the buyer's agent. Here is what you need to know: They would rather that the buyer (That they met because of your house) buy another house that makes them more money and requires less work because a Seller's agent has done and will continue to do what is required from the Seller's side. If your house sells, not only will they loose money from posting the house on the MLS, they'll loose their source of buyers and they will have to perform all sorts of administrative work at no profit. They are actually hoping that your house doesn't sell... and when it doesn't, they will tell you all the things they can do for you if you actually list the house with them. "I am an Agent and I Have A Buyer Who Wants To See Your House"  Well, maybe they do and maybe they don't. Many real estate professionals are honest and have a great amount of integrity. But some have different standards. Sometimes these "clients" might actually be little more than a friend posing as a "client". Here is what you need to know: Always ask the person with a "buyer" to provide you with the name of the buyer and their address. Since the buyer has an agent representing them, it may be inappropriate for you to contact the buyers directly... but if you promise not to do so, the agent should not hesitate to give you the name and address of the potential buyer. If they cannot do so, be wary.
3. "I Love Your House And Want To Buy It"  These are the words often spoken by "professional" buyers. Here is what they do. They call to make an appointment to see your house or maybe they visit your open house. Often they tell you they are married but their spouse is not with them.  They call you later (often much later) to let you know that they still "love" the house and they want their spouse to see it. They schedule an appointment, but have to cancel later because of what sounds like a very legitimate reason. Later, they schedule again and the spouse loves the house too... though they need to check on some things.  Then they come see the house again. They still like the house, but maybe the bedroom is a bit small or there are other things about the house that curbs their enthusiasm.  Here is what you need to know:  When they finally write a contract it will be for far less than you were expecting. You may have no other prospects (they are counting on it) and they are hoping that you will accept their offer knowing that you do not want to list with an agent and extend your ordeal. Oh, by the way, if you even mention that you might list the house with a REALTOR, they will not buy the house... of course they won't. A good REALTOR would expose their "scheme" for what it is.
4. "I 'll Sell Your House For 5%"  Well, maybe they will, and maybe they won't. Here is what you need to know: A listing commission includes a fee for the listing agent and a fee for the buyer's agent. The higher the rate for the buyer's agent, the higher the incentive for the buyer's agent to encourage the buyer to choose your home over the competition (as long as it is fairly priced). So, if a 5% listing fee is a discount from a 6% -7.5% or more listing fee; how much is being offered to the buyer's agent?  If a buyer can make 3% or more selling another house, but they are only going to make 2.5% or less selling your house, what is their incentive to sell your home? In a buyer's market, this could mean your house is overlooked by buyers who have lots to choose from. If the seller's agent is not discounting the buyer's agent commission, then what kind of marketing plan & budget are they going to use to sell your house?
5. "I Will Sell Your House At A Great Discount"  Well, maybe they will, and maybe they won't. Here is what you need to know: If they are promising to sell it for a great discount, then beware that they may be more interested in using your house to attract buyers for other properties or that they may try to "upsell" other services at an additional cost once you are under contract with them.  The old adage "you get what you pay for" has credibility. And remember the John Ruskin quote: "Anything that is free has no value".
6. "Use Our Free For Sale By Owner Website" Wait a minute, you are on a "Free For Sale By Owner Website". Yes you are... but there is a difference. Here is what you need to know: We are not gathering your information and selling it to the highest bidding agent who will then contact you and drive you crazy. We are not selling your name to companies that sell prospective seller names to real estate agents. We are a consumer website dedicated to everyone having the best real estate experience possible and we have developed a system that greatly assists sellers to sell their home "By Owner". Please Feel Free To Call For A Free One-Hour "For Sale By Owner" Consultation: 314-974-1410. Our presentation takes exactly one hour and will help give you the resources you need to sell your home "For Sale By Owner" with the fewest hassles. Please Note: We will not try to list your house during this consultation. We know that your time is valuable. If you have lots of questions or have much to discuss, please add additional time to the one-hour consultation.

When selling a home you have four basic options: