Sutton West Coast

  • Home
  • About Us
    • My Mother, My Mentor
    • Meet Alyssa
    • Meet The Team
  • Our Listings
    • Active Listings
    • Sold Listings
    • Luxury Listings
    • Lots for Sale
    • Commercial
      • For Sale
  • Property Search
    • Cloverdale
      • Cloverdale Houses
      • Cloverdale Condos
      • Cloverdale Townhouses
    • Surrey/Whiterock
      • Surrey/Whiterock Houses
      • Surrey/Whiterock Condos
      • Surrey/Whiterock Townhouses
    • Langley
      • Langley Houses
      • Langley Condos
      • Langley Townhouses
    • Metro Vancouver
      • Richmond
        • Richmond Houses
        • Richmond Condos
        • Richmond Townhouses
      • Burnaby
        • Burnaby Houses
        • Burnaby Condos
        • Burnaby Townhouses
      • New Westminster
        • New Westminster Houses
        • New Westminster Condos
        • New Westminster Townhouses
      • Coquitlam
        • Coquitlam Houses
        • Coquitlam Condos
        • Coquitlam Townhouses
  • IDX Map Search
  • Buyers
    • Mortgage Calculator
    • COST OF PURCHASING
  • Sellers
    • SELLING W/ A TENANT
      • Rew1
      • Rew2
    • EXPIRED LISTING
    • STAGING
    • Remediated Grow-Ops
      • Remediation Guidelines
      • List of Approved Remediation Professionals
      • Certification Form
      • Electrical Safety Checklist 2014
      • Remediation Information Bulletin
      • Enviromental Health
    • FAB 5 TIPS TO SELLING
    • FSBO
    • LUXURY HOMES
    • LEASEHOLD
  • Testimonials
  • Resources
  • Blog
  • Contact
  • Dotson Development
alyssa dotson logo
Meet the team
  1. Home
  2. Sellers
  3. FSBO

24 YEARS VETERAN REALTOR
ALYSSA DOTSON
WRITES SEVENTH OF 9 PART SELLERS’ SERIES


Sellers’ Series: Pitfalls of the “For Sale by Owner” Route
Homeowners often list their homes by themselves in the hope of saving thousands of dollars in commission. But is this actually a saving?
Alyssa Dotson explains


By
                                                             Alyssa Dotson                                                           
Alyssa Dotson Real Estate Team

     May 22, 2015       

                  
             
House for sale by owner FSBO       
                                                                        

The term For Sale by Owner (FSBO) is quite self-explanatory. It describes the process in which an owner has made the decision to sell their own home. Homeowners usually decide to pursue this route in the hope of saving thousands of dollars in real estate commission. But is this initial commission saving actually a saving? There are myths and misconceptions about selling your own home.

Although it is possible to sell your own home and save on real estate commissions, there can be obstacles associated with this personal undertaking.

  • Pricing/savings. Can the initial attraction of saving on commission mean underselling your home? Absolutely. I’ve seen it happen where the FSBO seller decides to price their home and negotiate an offer that is less than the amount they could have received by using a Realtor, and that’s after commission. Equipped with the Multiple Listing Service, a Realtor is able to accurately evaluate the fair market price and negotiate close to it.

  • Hidden expenses. Unexpected costs may arise after the buyer’s home inspection. There may be deficiencies that need to be addressed immediately. These could be very expensive fixes that the FSBO seller may believe is their entire responsibility in order to complete the sale. Additional “out of pocket” expenses include marketing and higher legal fees. Although the FSBO seller is not paying any commission to a realtor to sell their property, if a realtor brings a buyer, that realtor will expect to be paid the buyer’s agent’s commission, or negotiate a flat fee arrangement.

  • Screening and prequalifying potential purchasers. The inability to accurately determine whether a buyer can afford to purchase your home can cause the FSBO seller huge headaches. When a Realtor is involved with a sale, they are required to prequalify their buyers ensuring that they are viewing a home they can ultimately purchase.

  • Bringing strangers into your home. This can be a major safety concern. When you are selling your home and using FSBO websites, you are extending an invitation not only to potential buyers but also to people that may have no intention of buying.

  • Exposure. FSBO websites are available when selling your own home however most purchasers are unaware that these sites exist and when made aware can be fearful of them. The majority of buyers search MLS-based websites like Realtor.ca or REW.ca.

  • Legal liability. Selling your home can be very complicated. Realtors are insured in the event that a lawsuit arises due to buyer’s dissatisfaction usually caused by misrepresentation and/or non-disclosure. If such issues come up, the FSBO seller would be personally liable. Fact: Even Realtors are not advised to sell their own properties as they are not protected by their insurance.

Flat-Fee/Mere Listings

FSBO sellers that would like to save on commissions while maximizing exposure might want to consider a flat-fee listing, otherwise called a mere listing. This is a listing on the MLS system in which the Realtor member has chosen or agreed to NOT provide real estate services to the seller other than submitting the listing to be posted on the board’s MLS system. It is listed for a flat fee and is free of standard Realtor commissions. However, some larger brokerages do not allow their Realtors to offer such services.

A mere listing can be as low as $99 and increase in value depending on the services provided. If a seller is looking to acquire additional services such as advertising, marketing and open houses, a Realtor may offer a “package” in addition to the posting, and the fee is usually negotiated on a case-by-case basis between the seller and the Realtor.

In any case, the seller is still responsible for pricing, showings, follow-up, negotiations and dealing with all aspects of the transaction. The seller also still assumes full legal liability for the sale. So it would still be significantly cheaper than going the traditional commission-based route, but it’s a case of getting what you pay for.




Alyssa Dotson

Alyssa Dotson of Alyssa Dotson Real Estate Team is a top-sales-award-winning Realtor for Sutton Group, West Coast Realty. With 24 years of experience as a Realtor, Alyssa has proudly served many sellers and home buyers in the Greater Vancouver and Fraser Valley regions.

- See more at: http://www.rew.ca/news/sellers-series-pitfalls-of-the-for-sale-by-owner-route-1.1943017#sthash.TF9aVNXi.dpuf

FSBO

alyssa dotson logo
ad awards

Top 3% of realtors in greater Vancouver for 2014

Get Connected

604.418.2588
admin@teamalyssa.com

Where to find us

Sutton West Coast,
19951 80A Ave,
Langley, BC V2Y 0E2

back to top

back to top arrow
  • 604.418.2588
  • 604.418.2588
  • admin@teamalyssa.com

All information displayed is believed to be accurate, but is not guaranteed and should be independently verified. No warranties or representations of any kind are made with respect to the accuracy of such information. Not intended to solicit properties currently listed for sale.

The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.

REALTOR® contact information provided to facilitate inquiries from consumers interested in Real Estate services. Please do not contact the website owner with unsolicited commercial offers.

Copyright © 2025. Sutton West Coast. All rights reserved.

  • Sitemap
  • Privacy Policy
  • Real Estate websites for Agents