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By Al Heavens
Inquirer Columnist
Who in Lower Moreland Township has been walking off with Cyvi Levin's
for-sale-by-owner signs?
These aren't the kind you buy in the home center for a few bucks. Levin's
signs cost her about $200. As part of her marketing plan, Levin invested in the
signs to place along the major byways such as Byberry Road, Huntingdon Pike, and
County Line Road.
She made sure that the signs and where she placed them did not violate any
township ordinances. Still, shortly after putting them up, they disappeared, as
did a replacement set.
"Maybe I should be flattered," said Levin, who assumes that other sellers in
her area may have taken them.
Although I'm not a fan of for-sale-by-owner (FSBO), the truth is that I'd be
lousy at it. I'm too attached to my houses and would probably get overly
defensive. I tend to point out flaws. I can be short-tempered and impatient,
which means I should never be within 50 miles of an open house.
I also talk too much. I speak when I should say nothing. My wife of 25 years
knows enough to do all the talking when we buy cars.
I believe, however, that the National Association of Realtors underestimates
the percentage of annual real estate sales that are for-sale-by-owner. I assume
that such transactions are difficult to quantify, and that the percentages tend
to be higher in destination areas where demand is so great and supply so low
that houses do sell themselves. In some places, the figure is probably as
high as 40 percent.
Real estate experts say the increasing number of FSBOs in the market is
reducing the typical commission on a transaction. Commissions always have been
negotiable, but a growing number of homeowners appear to be negotiating these
days. Supply has not been close to demand, and agents are having to compete with
one another for limited listings.
But supply has been increasing over the last couple of months and is expected
to match demand soon. So the trend toward lower commissions might be reversed -
although with both more agents and more FSBOs, the day of the full commission
might be over.
Today's sellers are perfectly aware that marketing a $500,000 house shouldn't
cost $30,000 of the sale price, so they are looking for agents willing to settle
for 3 to 5 percent instead of 6 or 7 percent. Of course, higher prices means
that today's 3 percent commission could be larger than yesterday's 6
percent.
We're not talking about discount brokerage; we're talking about all agents.
For the last few years, some traditional agents have been offering
fee-for-service, which allows consumers to pick and choose what they want the
agent to provide. There are a lot of brokerages that provide this service to
FSBOs, as well.
Levin has four good reasons - other than not wanting to pay a real estate
agent - for selling her own house. Three of those reasons are "I live in Lower
Moreland," which is known for its top-notch school system. The fourth is that
she is in no hurry, since her new house, in an active-adult community, won't be
ready till the end of the year.
She considers summer the perfect time for her experiment. "If my house sold
earlier than the end of the year, I have plenty of places to stay until the new
house is completed."
What is her marketing plan, other than the signs? She listed her house on
Forsalebyowner.com. (She's had a number of hits but no contacts.) Her open
houses have been well-attended but haven't yielded offers. She's placed
newspaper ads.
"At first, I welcomed every person who called and asked to come in," Levin
said. "Then I realized that these drive-bys don't know the size of the house,
don't know I have a pool. They just may want to look at a Lower Moreland house
and have no interest in buying."
So instead of saying yes to everyone, she now provides just basic
information, asks if they need to sell a house to buy hers and whether they have
been pre-approved or pre-qualified for a mortgage, and then makes an appointment
to show the house.
Since she put her house up for sale, Levin has been contacted by quite a few
real estate agents.
"Some have been lovely; others have been pushy," she said. And it seems to be
the pushy ones who have kept the FSBO idea going for her.
"I don't know if I will feel the same way in September, when the leaves are
falling into the pool, the flowers have faded, and the windows aren't sparkling
like they are now."
On the House | ONLINE EXTRA
Al Heavens answers questions about real estate and home improvement in an
online forum at http://go.philly.com/askheavens
Heavens is the author of "What No One Ever Tells You About Renovating Your
Home," published by Dearborn Trade.
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