FREQUENTLY ASKED QUESTIONS

What is a For Sale By Owner - FSBO

FSBO is the abbreviation for “For Sale By Owner.” Term is used to identify property, homes, condo’s or land, which are sold by the owner without the representation or help from a real estate agent. Typically, owners advertise their properties by means of websites, classified ads, word of mouth, and other means.

We provide you the method to sell your home “For Sale By Owner” or FSBO on Hawaii, Kauai, Maui, Molokai or Oahu and save thousands!

What is a Mulitple Listing Service (MLS)?

A multiple listing service (MLS) is a service used by a group of real estate brokers. The MLS allows agents to see one another’s listings of properties for sale and syndicated to their websites for the public and potential buyers.

Should I sell my home myself?

Savings: The obvious advantage is you’ll save a significant amount in Seller’s Agent Commission. This can add up to thousands in savings.
Sell without an agent and pay no commission.

Reach: Over 95% of home buyers today start their home search online. With platforms like ours and it’s easy to reach these buyers. Listed on MLS, it will be seen on every agents website, Zillow, Trulia, Realtor.com and hundreds of of others. This helps reach agents in addition to home buyers directly.

Options:Once you’ve signed with a traditional 6% agent you’re locking yourself into a contract, often for months. This severely limits your options even if the agent is incompetent. It is generally better to attempt to sell your home yourself before locking yourself into a contract with an bad agent.

How will buyers and buyer agents contact me?

We will insert your contact info in the private remarks section of the MLS listing. Buyer’s agents see these remarks and will contact you directly via phone or email. If the buyer or their agent contacts your Listing Agent, the agent will forward you their information so you can directly reach out to them

Do I offer the buyer's agent a commission?

The majority of buyers are still represented by an agent, so it’s recommended that you offer the buyer’s agent commission to incentivize agents, and required on MLS, to bring you buyers and help sell your home faster. With For Sale By Owner, you’ve saved the seller’s agent commission, which would normally be between 2% to 3%.

How long does it take to get my listing on the MLS?

In most cases, your listing will appear the same day or on the next business day. This is after you have submitted your listing information and answered any follow-up questions the we might have.

Pricing your home correctly

Is it a science, or art, pricing your property to sell?

Do you want to just list it, or sell it?

Selling a home in Hawaii, Maui or Oahu? The price to sell is a direct function of marketing. A strategic market price will complement our marketing campaign and position your home effectively in the marketplace.

Let’s look at few ways that psychology can influence the price.

1. The $9.99 syndrome
It amazes me how many agents price a home with a 95, 99 at the end. You always see $395,000 $299,999 or $199,900.

Why does 99 percent of the agent population follow the crowd, and supermarket mentality, and price the same way?

Many agents are not looking at the price as a function of marketing. It has been said the 9’s first appeared in the 1880s convincing the gullible that they were getting a bargain. Many discounters still use 99 in their pricing, but it does not fool smart people.

The main reason it can hurt your listing is that most buyers start their search online, on a smartphone or tablet when looking for a home. Whens the last time you said, or heard, “Hey, lets buy a house, let’s go talk to a real estate agent at his office”, If a buyer is looking between $500,000 and $525,000 for a home, and you priced your at $495,000 or $499,999, that buyer may never see the property online.

The best advice is to price at $500,000, as you will capture both sides of the search. Someone looking between $450,000 and $500,000 and someone looking between $500,000 and $550,000 will find the property online.

Also, you should position your home as luxury brands do, not as discounters. For instance, Godiva chocolate prices at $36.00, not $35.99, and Neiman Marcus prices at $625.00, not $624.99. Ferrari and many other luxury brands also use this model for their products.

Do they know something or is this just coincidence? Does the consumer perceive this as a higher-quality product? These brands apparently think so.

That same home, listed online, is actually losing buyer traffic because of its pricing gimmick. The reason is simple, and it should be an obvious reason to never use the “99” pricing model again.

Online buyers search in zeros. Buyer A searches for homes from $500,000 to $600,000. Buyer B searches for homes from $600,000 to $700,000. That’s the way MLS’s, portals and agents’ websites have set up the pricing parameters. With a listing priced at $600,000, both Buyer A and Buyer B will see the home. Priced at $599,999, Buyer B won’t see it.

It’s tempting to believe that you’d miss out on only a small percentage of buyers or that most buyers won’t set a “lowest price” in their search, but it’s simply wrong. Our company has a client database of around 8,000 users, and we track their searches on our websites. The majority of users set a fairly tight price range in their searches. They know what they can afford and don’t want to waste time looking in a price range that they know won’t fit their needs.

Don’t let your listing miss out with a .99 gimmick. Over ninety percent of buyers are searching online. Price the home the way buyers search.

2. The power of four and seven
Studying the psychology of price, the concept of the power of four and seven is evident. For example, a price of $447,000 or $444,000 is precisely priced, and appears that the seller has scrutinized true market value, which could suggest to the buyer that there is less negotiation room. This assumption benefits the seller.

Another reason is that the price is unique and stands out to the buyer. Think about all the property listings displayed on all the website portals, like way too many products on a shelf at a store. A unique price, unlike the others, stands out. Because it’s different and more unique, it will attract the buyer’s attention. Examples of this would be Costco or Wal-Mart, who use the four and seven frequently on their sale items. They want to differ from their competitors.

There is also something call the “Right Side Digit Effect.” So, a price of $527,000, has the perception of looking like a better discount or value than $529,999.

Some believe that using the four and seven in your pricing is more emotional to buyers. It’s a friendly number that leverages the buyer’s ego and self-image and has a higher perceived quality of what you are selling.

And don’t forget — seven is a lucky number

3. Avoid an agent who is “Buying” your listing
Some sellers who price high are given false hope by unscrupulous or newbie agents who are uncomfortable telling their clients the truth.

Beware of ‘Sign Agents,’” buying your listing, what’s a sign agent? Some agents will agree to any price you want, just to get their sign on your lawn, then work you down to a realistic price, costing you time, and money.

Instead of listing at the inflated price, “come to realistic expectations of what your home will likely sell for.”

Imagine you want to buy a gallon of milk. You eye the case, shelves stocked with dozens of choices, but they are really all the same. Milk is milk, and which one you select is really insignificant because they are all identical, and they are all priced the about the same.

But what if each identical container was priced differently? Odds are you have set aside enough time for your shopping , and you carefully check the price labels and go for the best deal. Or maybe you are drawn to the more attractive packaging?

When selling your home, attractive pricing and packaging are arguably the two most basic essentials. In our current real estate market, the buyers have lots of choices. In many areas, the shelves are simply overstocked. And since no two homes are the same, making that distinction between your home and the dozens of others is key to getting offers and selling.

Where pricing is concerned, establishing that all important asking price is part science and part art, and there are several things you should consider.

Study past sales. This is the starting point for any thoughtful and successful pricing strategy; think of the “science” part. Take the time to study past sale statistics for homes in your area and areas similar to yours. None will be identical, of course, but having a clear understanding of true market value is the first step in establishing your selling price, or yourlisting price.

Do not confuse active listings with past sales. Active listings have not sold. They are just your competition. It is important to be aware of your competition’s pricing, but this is often just an reference of what your home won’t sell for.

Do not overprice because you have “time.” If the market is rising, this strategy may work, but if prices in your area are declining, or flat, you may quickly find yourself chasing the market and costing yourself time and money. And if the market is stable? Your home will just sit as another listing. Buyers pay in today’s dollar value, and time is rarely on your side.

Leave some room for negotiation, but don’t overreach. No seller wants to feel he left money on the table, and no buyer wants to overpay. Your price should give both parties room to maneuver, but if it is too high, you may be perceived as unrealistic, and buyers will pass over your home.

Think like a buyer. What are the things that you value in a home? Is it a large yard, an updated kitchen or a view? These are likely the same things that your buyer values as well. Talk to your agent about current buyer trends. Yesterday’s avocado green shag carpeting is today’s granite countertop. The property facing the interstate is going to be a tougher sell than the one with an ocean view. Your price should reflect how your home truly compares to the others offered for sale. Buyers will find objections to any home, as none is perfect, but it is curious how quickly objections disappear when the price is compelling.

React swiftly and decisively. If your home is on the market and is not being shown or if you receive feedback that you are priced too aggressively, be realistic, don’t hesitate to adjust your price. Bad news, like spoiled milk, doesn’t get better with time.

First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers. If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date. You have one chance to grab attention.

Make sure your pricing helps you stand out on the shelf — in a positive way. Price it right to start, and if you don’t receive offers in the first few weeks, consider a price adjustment using the power of 4’s and 7’s.

Do you want to list it, or sell it?

How will I know when my listing goes public?

One to two days after you’ve submitted your listing information to us and answered any additional questions we might have, your listing will go live on the MLS, on agents websites and various portals like Zillow, Trulia, and Realtor.com.

Will Realtors Show And Sell My Home Even Though I Paid For A Flat Fee Listing?

Yes. Your MLS Flat Fee Listing will look exactly the same as any other agents listing. There is no way to tell how much you paid to get on the MLS. Regardless of whom you listed with or what you paid, your listing will look no different from any other listing in form and style. The listing commission is not shown. The listing brokers name and commission offered appears on the MLS. Our flat fee listing method gets your property on the same MLS used by your local REALTORS®. Your listing will appear the same as all other MLS property listings.

How Important Is That The Listing Agent Office Be In My Neighborhood For My Home To Sell?

Not at all, it does not matter. It’s merely an often-used false marketing method to make you believe it makes a difference so that you end-up listing with them and pay thousands more. Few potential buyers reside in your neighborhood. Most buyers come from another part of town, another city, or out-of-state. Even if a prospective buyer happens to live nearby, why would location of the listing broker make any difference at all? Keep in mind, a buyer who comes via The MLS in all likelihood already has a REALTOR® who is working with them. A buyer rarely hires the Listing Agent. If the Buyers’ Agent needs to contact the Listing Agent they normally use the phone or email to submit a purchase contract offer and in-person contact is never really needed. It really makes no difference.

Why Should I Remove All FSBO Signs And Marketing Efforts?

Please keep it to yourself that you are not paid a commission on the listing side, as long as you trust yourself to act as a listing broker, you are in full control. We always advise our clients to remove all references of FSBO and stop marketing the home themselves as soon as they hit the MLS. Many home owners do not understand that, keep trying to market their home as FSBO. It can be a very costly mistake. Please be smart, and keep it a secret that you are not paying a commission to us. Let all buyers and realtors assume you are paying the full 6% commission.

The three biggest reasons for you to remove all references to For Sale By Owner, or FSBO, on your signs, web sites, flyers, any marketing materials:

1) FSBO unfortunately attracts bargain hunters only. They feel you are desperate to sell and will offer only ridiculously low prices.

2) It may scare away inexperienced buyer agents as they are afraid of losing their commission.

3) It attracts unethical local listing agents to solicit your listing: they will LIE to you about realtors blocking our listings. Why would any buyer agent not showing our listing when you are paying them exact the same 2% or 3% commission?. They want you to drop us then they will happily try to charge you 6% commission to list your home in exact same MLS. Why on earth would you pay 6% working with the same MLS and same buyer agents?

Once you are on the MLS, you just hired 1000+ buyer agents working for you. You have the same playing field as all other homes on it. All buyer agents are protected.

Please be aware of those local listing agents who contact you while your home is actively listed on the MLS. It is UNETHICAL and ILLEGAL to solicit your listing.

Please report them to us immediately and file a complaint on the Hawaii DCCA web site:
https://cca.hawaii.gov/rico/files/2018/04/RICO-COMPLAINT-FORM-REAL-ESTATE-2018_1_22.pdf

How Much Commission Do I Have To Pay To The Buyer'S Agent?

The commission the Seller pays the Buyer’s Agent is totally up to the Seller. Real Estate commission fees are not FIXED, fees are negotiable by LAW.

If I Find My Own Buyer, Will I Still Have To Pay A Selling Commission?

No. For Flat Fee MLS listing, If you find a buyer for your home with no Agent being the procuring source, there is no commission to pay. On our 1% full service listing, you will still need to pay our listing side commission.

Do You Offer Free Forms And Contracts If I Sell My Home Myself?

Yes, we do offer free forms, addendum and documents . When you list your home with us, we will email you all the forms needed if you sell by owner. If your home sells thru the MLS, the buyer’s agent will prepare the purchase contract.

On our 1% full service listing, we provide all forms, addendum’s and documents as well as our proprietary documents crafted from years of negotiations.

Can I Make Changes To My Mls Listing?

Yes, you can make changes by submitting a change request online from Seller Tools. Or, you can send an email to Changes@HawaiiFlatFee.com

Note: Some changes require an additional fee, most are free.

How Do You Market my Listing?

Full Syndication to Zillow, Trulia, Realtor.com and hundreds of others with our private syndication system.

Our marketing system syndicates to over 185 Participating Publishers reaching Home buyers on more than 900 Websites, as well as every agents website in the MLS, and their clients.

How Can I Get My Contract Reviewed?

We are very knowledgeable and qualified to review the initial contract for you, we negotiate hundreds of contingencies each week. If you need us to help negotiations, review contracts, etc., upgrade your listing to Full Service and we will help you all the way from negotiation till closing. After the offer is accepted, we encourage using legal representation, even though it is not mandated.

Hawaii Flat Fee