The Eyes Have It: Understanding Home Buyer Internet Search Behavior
FSBO PPT.fixed
1. For Sale By Owner
program design
Anthony T. Marcino
www.amarcino.kw.com
amarcino@kw.com
614-330-2520
2. Tonights Agenda
• Who is Anthony Marcino?
• Welcome and Information Exchange
• Marketing, Advertising, Sales
• BUYERS…how to qualify them
• FSBO vs. Brokers / Agents: Research
• FSBO Referral Program
3. Who is Anthony Marcino?
• Born and raised in Steubenville, Ohio
• Bachelors Mathematics and Masters Education at
Franciscan University of Steubenville, Doctoral
Research in Progress.
• Ohio Army National Guard 1992-2002
• Owned and Operated Mortgage/Real Estate
Investment Co. 1996-2008
• Taught Algebra, Geometry, Calc., Trig. 7 yrs
• Principal for 3 yrs
• Realestate Agent @ kw KELLER WILLIAMS
4. Who is Anthony Marcino?
Bought and Sold over 100 residential
Homes in FRANKLIN county ALONE
15. BUYERS
• Working with an Agent?
• Are you Cash Buyer?
– Cash: Ask for an earnest deposit
upon acceptance of the offer
– How soon do you wanna Close?
• Finance Buyer?
– Conventional, FHA, VA, other
– PreQualified vs. PreApproval
16. BUYERS
• Finance Buyer?
• What is Prequalified vs.
Preapproved?
• Find out there DTI ratios
– Conventional 28/36
– FHA 31/43
– VA -/41
– USDA Guaranteed/Direct 29/41
• Find out there Down Payment
– Less than 10% changes rations
– Less Than 20% adds PMI on
conventional loans
21. FSBO vs. Brokers / Agents: Research
• The National association of Realtors (NAR)
shows that the median price by FSBO’s is
27% lower than using a broker. (National
Association of Realtors 2002)
• The NAR also show that 44% of the
transactions by FSBO’s were completed
with buyers that the sellers previously knew.
22. FSBO vs. Brokers / Agents: Research
• Luersen, McKinney, Huang, Foley (2014) explains that this
transaction is probably the apex investment the general
public makes in their lifetime.
• “In a perfect world, where money is no object, it would be
definitely in the consumer’s best interest to hire both a real
estate broker / agent and an attorney to help guide,
protect, and generally look after his (her) best interest in a
real estate transaction. In many states the consumers are
legally required to hire both.” (P.7)
• They extend and explain that the buying and selling
process is full of variables that propose challenges and
decisions that the parties involved encounter.
23. FSBO vs. Brokers / Agents: Research
• Luersen, McKinney, Huang, Foley (2014) continued….
• Buyers are deciding:
– what the buyer wants,
– knowing what he can afford,
– making an offer (when the time comes),
– securing finances and last but not least,
– closing the deal
– the down payment,
– qualifying for a loan and his/her comfort level with the numbers.
– need to think about preparing a contract, handling negotiations,
– setting up inspections, and option periods.
– interest rates, points, and total lender fees, term of the loan, and
penalties for early payment.
– appraisal since most lenders require it to verify that the home is in
fact worth the cost of the loan. Physical surveys, required repairs
and insurance are also among the list. (p.2)
24. FSBO vs. Brokers / Agents: Research
• Luersen, McKinney, Huang, Foley (2014) continued….
• Sellers are deciding:
– NOT ONLY faced with potential buyers muddling through the
previous decision making process
– trying to find a new place to live.
– setting a price,
– marketing the property
– considering the offers.
– If listed too high, he/she may not be able to find a buyer. This could
be the step that makes or breaks the entire selling process.
– At this point most sellers resort to hiring an appraiser to estimate
and report the value of their property. It is important to note that
an appraiser’s estimate of value is only accurate on the day it is
reported. (p.3)
25. FSBO vs. Brokers / Agents: Research
• Luersen, McKinney, Huang, Foley (2014) continued….
– The authors explain that searching for these details on the internet can
lead to incorrect data.
– staging “…would be smart to reduce clutter and remove personal
items such as pictures. Potential buyers would like to walk into a house
and visualize where furniture would be placed, for example.” (p.3)
– They show that one of the best pros to hiring a Real Estate agent is
that they work Pro Bono. “Unlike other services which are paid for by
the hour or a flat fee when the work is completed, most real estate
broker / agents are paid by a commission at the end of the
transaction.” (p.6)
– An attorney’s specialization is real estate law and his or her fluency in
legal language. A broker / agents’ specialization is in the sale, purchase,
and leasing of real estate. Based on the research gathered, the authors
can conclude that the broker / agent is the most advantageous choice.
(p.7)
26. FSBO vs. Brokers / Agents: Research
• Pyhrr, Seiler, and Wofford (2011) define and discuss
the origin, past and future agenda for the real estate
think tank the American Real Estate Society
(ARES).
• “We have gone from a print world to an Internet-
based world where digital copy and instantaneous
access to research is an expectation.” (p. 45)
• “…it is hard to see exactly what the next 10 years
will hold for ARES given the fast pace of technology,
but there is one result that we can predict with
certainty - we will depend much more heavily on our
ARES website and related technologies.” (p.53)
27. FSBO vs. Brokers / Agents: Research
• Bernhiem and Meer (2007) found that the use of a broker and their
bundle of services, results in a more timely completed transaction.
– Provide promotional services, help prepare a house for sales,
circulate flyers, place advertisements, hold open houses, and
recommend the house to individual buyers.
– Second, they often assist with negotiations.
– Third, they screen prospective buyers, facilitating and potentially
accelerating the process of matching buyers and sellers
– Fourth, they provide access to the (MLS),
which lists all homes available for sale.
– Fifth, they provide market information and recommendations
pertaining to the appropriate asking price.
– Sixth, they often assist with paperwork and legal documentation.
(p. 1)
28. FSBO vs. Brokers / Agents: Research
• Crowston and Wigand (1999) explore and extend the timely
change agent of Technology and its affect on Real Estate
markets.
• They explain that if the value and service provided by real estate
agents is information based, then they are competing directly
with the technology movement.
• However, the interpretation of the information and data
gathered becomes the focus for an effective FSBO transaction.
• They explain that the electronic phenomena offers exchange of
value, suffice information, and diminishing costs of transactions;
furthermore, challenging the value offered by real estate
professionals.
• “with these unknowns and more change looming,
unquestionably the real estate agent and brokerage of the future
must become flexible, responsive and information technology-
savy” (p.12)
29. FSBO vs. Brokers / Agents: Research
• Goodwin and Stetelman (2013) find Real Estate brokers are
“themselves falling behind the technology curve and are
struggling to quickly incorporate social networking and
smartphone technologies into their marketing plans.” (p.1)
• They find that the marketing methods have evolved to include:
multiple listing services (MLS), internet searches, new mobile
technologies, blogs, social networking, smartphones, tablet
computers, and global positioning systems (GPS).
• Online sources of information are especially useful to younger
buyers, higher income buyers, and buyers with children because
they are more comfortable with technology and appreciate the
convenience and lowered opportunity cost associated with an
online home search
30. FSBO vs. Brokers / Agents: Research
• Do you know what a 1031 exchange is?
• I’m not an accountant/attorney
• I’m not giving advice
• This is research Defining 1031 exchange from:
• Grekin (2006)
