Scottsdale startup helps homeowners sell without a Realtor through an online process
Married couple Colleen and Allan Crommett started fsboTech in Scottsdale as a low-cost listing service for homeowners looking to sell their homes on their own.
By Hayley Ringle – Reporter, Phoenix Business Journal February 15, 2018
When Jeff and Amy Vandervort recently sold their $1.55 million home in Fountain Hills, they were able to sell it themselves and save in excess of $50,000 in commissions through a Scottsdale-based startup.
FsboTech LLC offers a low-cost listing service for those looking to sell homes on their own. It offers an automated website process to help during the entire process.
“We were exploring how to sell a home without a Realtor, and fsboTech was recommended to us,” said Amy Vandervort, a retired wedding and event business owner who moved to Dallas with her husband. “It was extremely easy to use, surprisingly easy for us, with not so much paperwork. I absolutely would recommend it. It was also easy to contact them with any questions.”
“It was extremely easy to use, surprisingly easy for us, with not so much paperwork. I absolutely would recommend it. It was also easy to contact them with any questions.”
FsboTech, which stands for “for sale by owner,” launched its website in May and provides services from the beginning to the end of the home-selling process, including title and escrow, said co-founder and CEO Colleen Crommett.
“When you sign up, we provide upfront services, such as 20 professional photos, a 6-foot yard sign, and assistance with open houses,” Crommett said. “Our website has an intricate offer and counteroffer. Either a buyer or Realtor can make an offer on the site. It’s a point-and-click offer on the website.”
The company also lists the home for free on Multiple Listing Service and dozens of other websites for maximum exposure.
The site’s goal is to save people money without using a Realtor, listing agent or selling agent, who typically each make 3 percent on a home sale. The site also can be used by Realtors, she added.
“For a $300,000 home, that’s a savings of $9,000,” Crommett said. “It’s a way to save folks upfront money but keep the visibility. Once the offer process is complete, it’s all online and very simple. It auto populates into the purchase agreement. Everything is electronic. It’s a very complete system that provides everything for the seller, buyer and Realtor.”
Crommett and her husband, Allan, have been real estate investors for years in California and Arizona and developed the idea for fsboTech in 2016 when they started developing the website.
Colleen is a lawyer by trade, and Allan is a retired CIO of a publicly traded company. Allan is the president and co-founder of fsboTech.
“In our real estate dealings, we used Realtors and often thought we’ve done this so many times we should be doing this ourselves,” said Crommett, who became a licensed real estate agent in Arizona and California. “We want to make a presence first in the Valley and then intend to expand into California in March.”
With six contract employees, fsboTech has listed about 80 properties in the Phoenix area and Tucson and sold 26 in its first seven months. Forty properties are listed on the site now, and four are in escrow, she said.
fsboTech has listed about 80 properties in the Phoenix area and Tucson and sold 26 in its first seven months.
“This niche has been ignored, the ‘for sale by owner’ space,” Crommett said. “Our goals are to have 500 properties sell in the first 18 months. We are hopeful that if we can reach this goal that sends a signal that California will be next.”
Plans are to hire at least 10 people during the next 12 months, with positions including help desk, sales and marketing.
The company charges $159 upfront for its services. It also makes money by taking a fee out of escrow that begins at $200 for houses under $100,000 and up to $2,000 for houses with a more than $1 million selling price.
FsboTech has partnerships with local mortgage, lending and title and escrow companies, including Academy Mortgage, Movement Mortgage, Lend Smart, Thomas Title, Stewart Title and Empire West Title.
Homeowners interested in learning more about the company are invited to upcoming seminars 3-4:30 p.m. April 10 and 5:30-7 p.m. April 12 at StarPower, 7077 E. Mayo Blvd., Suite 120, Phoenix. The free seminar includes food and prizes.