Author Topic: Do you FSBO or use a realtor?  (Read 4734 times)

greenmimama

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Do you FSBO or use a realtor?
« on: February 20, 2014, 01:58:28 PM »
We bought this house is 2012 and we plan to sell it this summer, we have a lot invested into it and would like to get every penny from it, it was purchased as a slow flip, so this is our biggest gamble with money as adults :)

My question is, do you DIY for selling a home or do you go straight to a relator?

I'm not sure what kind of details are pertinent here, so if you need to know something please ask.

soccerluvof4

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Re: Do you FSBO or use a realtor?
« Reply #1 on: February 20, 2014, 02:07:58 PM »
I have always used a Realtor. I have 2 different ones I have used for years so get a better deal than the norm. The MM way would probably be of course to FSBO and if your in a market that is an easy sell and have a inexpensive attorney to cover you and don't mind going through all the BS then go for it. Also depends on what you want to net and if your a realist and not emotionally attached to your home. Everyone thinks there house is special and hence worth more.  I know i didn't come outright and answer your question but maybe gave you some thought to make your decision.

greenmimama

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Re: Do you FSBO or use a realtor?
« Reply #2 on: February 20, 2014, 02:14:34 PM »
Well my house IS special and worth more ;)

I actually think we can price it very close to what a realtor would and it will not be an easy sell just because of it's size and all, it's a country home on 30 acres, lots of people love that, but can't afford it, or don't want 30 acres, personally I would love 300 acres!

CommonCents

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Re: Do you FSBO or use a realtor?
« Reply #3 on: February 20, 2014, 02:20:20 PM »
We bought our house w/o a realtor but are currently selling our condo with one.

Do you have the time to do showings?  Ability to market the place?  We were very uncomfortable at the one FSBO open house we attended due to the owner's presence/conversation.  His kids in their rooms during it did not help either.

greenmimama

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Re: Do you FSBO or use a realtor?
« Reply #4 on: February 20, 2014, 02:30:28 PM »
We wouldn't do open houses, only private showings after knowing they are pre approved for the loan rate.

CommonCents

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Re: Do you FSBO or use a realtor?
« Reply #5 on: February 20, 2014, 02:35:29 PM »
We wouldn't do open houses, only private showings after knowing they are pre approved for the loan rate.

One thing that also turned us off it, was knowing that some people simply won't buy a FSBO, believing it to be more hassle (among other reasons).  I'm nto sure how much, but you do narrow the pool of buyers.

We ended up negotiating the % the realtor takes instead.

Another Reader

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Re: Do you FSBO or use a realtor?
« Reply #6 on: February 20, 2014, 02:49:27 PM »
I think you are very unrealistic if you think you are going to get a lot of preapproved buyers calling for private showings.  Most folks that are preapproved are already working with the agent that got them preapproved.  Given your comments about getting top dollar for an unusual house, I think you will need full market exposure and that means the MLS.  Having an experienced agent give you a realistic price from the get-go also will help you sell it faster.  There's another recent thread about someone selling a similar property that may be helpful to read.

greenmimama

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Re: Do you FSBO or use a realtor?
« Reply #7 on: February 20, 2014, 02:49:55 PM »
It's just hard, it feels like we are giving that % away, it hurts

greenmimama

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Re: Do you FSBO or use a realtor?
« Reply #8 on: February 20, 2014, 02:52:39 PM »
I think you are very unrealistic if you think you are going to get a lot of preapproved buyers calling for private showings.  Most folks that are preapproved are already working with the agent that got them preapproved.  Given your comments about getting top dollar for an unusual house, I think you will need full market exposure and that means the MLS.  Having an experienced agent give you a realistic price from the get-go also will help you sell it faster.  There's another recent thread about someone selling a similar property that may be helpful to read.

Where would I find that thread?

We might be unrealistic, although I think we have an excellent grasp for someone who isn't  a realtor already :) I was thinking more of trying for a month or so and then listing it on the MLS

SnackDog

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Re: Do you FSBO or use a realtor?
« Reply #9 on: February 20, 2014, 02:54:20 PM »
FSBO is the only way you want to go if your goal is to minimize realtor fees. It is probably not the best way to get a quick sale for the highest possible price with strongest legal protections.

Another Reader

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Re: Do you FSBO or use a realtor?
« Reply #10 on: February 20, 2014, 03:00:19 PM »
You are not giving it away.  You are paying for someone to represent you.  You may be able to negotiate the fee down, but you should get full market exposure and a no-nonsense, realistic price analysis from someone that has sold houses like yours before for your money.  Given that you are selling a property with a limited market, look for agents that have handled these properties and interview several before you decide.

I will have to look for the thread.  The seller had a property with some acreage that was outside of the normal commute range.

If you use up the first month of the spring selling season trying FSBO, you lose a large number of buyers.  I'm not an agent, but I have bought and sold a lot of houses.  Unless you have a very desirable house in a hot market, FSBO is not the way to go.


bdbrooks

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Re: Do you FSBO or use a realtor?
« Reply #11 on: February 20, 2014, 03:52:19 PM »
I think you can't look at it as saving 6-7%. You have to be prepared to pay the buyers agent, and if they don't have an agent then they will be looking for about 3% better of a deal. So you would only be saving 3%...before other costs that you incur without a realtor. So then the realtor needs to sell your house for about 2% higher than you would have FSBO to break even. That is why they are generally worth it to get more buyers in there.

My sister tried FSBO for 18 months...0 offers. Got a realtor and 1st day 2 offers at list price...second day one of the people that initially offered called back to RAISE their offer by 5k.

For your case, you might be able to negotiate the % fee if it is a higher cost house/land. That is what I would try to do if I were in your shoes.

ZMonet

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Re: Do you FSBO or use a realtor?
« Reply #12 on: February 20, 2014, 04:03:48 PM »
I won't BS you.  IMO, Realtors aren't worth the 5-6% (total), especially with house prices being so high.  they are the gatekeepers though and unless you live in a hyper market with a hyper sought after property (yours doesn't sound like it), then you're better off going with the best realtor you can find.  The last thing you want to do is have your property on the market for an extended period of time where people think there is something wrong with the property.  You'll end up lowering and lowering your price...Also, keep in mind that many people have signed contracts with agents that require them to pay their agent no matter what.  Those realtors are unlikely to seek out your property unless you are offering them their 3% and, if you're going to go FSBO, maybe offer 3.5-4% to incent them to come to your place.

My 2 cents is that if you go FSBO you're going to go from overly optimistic, to wanting to just get out of the house.  Only you know though if you'll be realstic on price and what your market will allow.

Keep in mind this comes from someone who sold FSBO.  that was 2003 though for an entry level property in a ridiculously hot market -- had 11 offers after the 1st day.

sleepyguy

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Re: Do you FSBO or use a realtor?
« Reply #13 on: February 20, 2014, 04:05:06 PM »
We sold our 2nd previous home FSBO, key is to get it onto MLS for exposure.  Yes you should be upfront and pay the buyer's agent 2.5-3%.  Also have a decent lawyer.  Real Estate selling is not rocket science as the realtors make it out to be... that is why a few test anyone can become one.  My friend is one and he even thinks it's robbery how much commission is (yes he's quite successful RE).

Do some research, get it on MLS for a onetime fee, get a decent lawyer to handle the paperwork... they generally do all the heavy lifting after all parties have agreed.  If you want the hands off approach, can't show your property or whatever... then yes get yourself a RE agent to do that for a 2.5-3% selling price.

Weedy Acres

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Re: Do you FSBO or use a realtor?
« Reply #14 on: February 20, 2014, 05:17:39 PM »
See if there's a flat fee MLS listing service available in your area.

The real-estate-industrial complex is a racket and way overpriced.  But sometimes it's a clique that you will have a hard time selling your home without getting into.

Nords

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Re: Do you FSBO or use a realtor?
« Reply #15 on: February 20, 2014, 08:47:23 PM »
FSBO all the way.  We've sold two homes bought two homes that way, and we far prefer that hassle to the challenges of dealing with a realtor.  Admittedly we're real-estate junkies and control freaks, but military moves make it tough to network for a good realtor.

We wouldn't do open houses, only private showings after knowing they are pre approved for the loan rate.
As Another Reader said, if this is how you think you're going to sell your property then you really need to do your research on how to execute a FSBO.  If I was a potential buyer calling about an open house and you told me about "private showings after loan approvals", then I'd chuckle and move on to the next listing.  I'd be willing to risk waiting a month (or six) and trying you again with a lowball offer.

You could start with the "For Sale By Owner" books at your library or randomly buy a few from Amazon.com. 

You could save some commission dollars with a Help-U-Sell franchise or similar business, but they only do the marketing and leave the actual selling/closing in your hands. 

Or you could escape all of that time & studying & effort by giving a realtor a 6% commission.

stashing_it

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Re: Do you FSBO or use a realtor?
« Reply #16 on: February 20, 2014, 10:31:16 PM »
I just sold my house using a realtor.     After about 3 months on the market, I posted here with a similar question, and got a lot of advice to continue using the realtor.      The house ended up selling after about 4.5 months for near list price, but I walked away not entirely happy with the whole experience.     I lost money on the house (bought at the wrong time in 2007, and lived there for 7 years) so the only people who made any money were the real estate agents.

If I were to do it over, I would either

1) Still use a realtor, but instead of contacting one and meeting with her and then ending up signing the contract that she prepared for 6% I would
    -  email a number of offices, and find someone who was willing to do it for a bargain price.   Maybe 3-4%    (I still am not sure why people say that you have to offer the buyers agent a full 3%.  I know when I look for a house, I am looking online and telling the agent which houses I want to go to)
    -  Only do a 90 day contract, not a 180 day contract   (a mistake since we didn't negotiate ahead of time, and then signed although uncomfortable when it was presented)
   -   Strike out any clause in the contract that says  that after the contract expires the real estate agent gets the commission if the buyer found out about it from their advertising or efforts.   This is known as the extender clause, and is intended so that if they find a buyer, you can't stall for a month to skip the commission.   In that form it is legitimate.   However 6 months of payment for anyone who saw it from their online MLS listing is ridiculous.         If that clause had to be in there, I would insist on either 1 month   OR  that upon ending of the contract that the real estate agent needed to provide a list of specific people to whom the 6th month extender would apply, i.e. any one who had shown interest up to that point or actually toured the property,   but not a blanket coverage of every single person who might have seen it on the internet


or 

2)   Try a FSBO for the first month for the initial flood of people touring and potentially offering,  and if that didn't work and I couldn't invest any more time, go back to option 1


I agree however, that the work a realtor puts in to sell a 600K house instead of a 200K house is not worth the extra 24K in commission that you would have to pay