Portland Oregon - selling your unlisted home without agent
Member since 2022 · 2 posts · 1 vote
Portland Oregon - selling your unlisted home without agent
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Zac Lindquist:
Quote from @John Smithey:
For sake of argument, assume that I already have a buyer identified. Taking marketing completely out of the equation, are there still other considerations?
At that point you could go the attorney route. One thing to keep in mind is even though you do not have to pay realtor commissions going private, you still could be missing out on netting more by listing the property.
I recently put in 2 offers 60-70k over asking for one of my other buyer clients and still lost out by what the other agent stated as a "significant amount". You are giving your private buyer a great deal if they do not have to compete in this market. The duplex I referred to sold 50k over and I paid the buyer's commission no problem and would every time.
you can simply go to a title company to close this you dont need a lawyer generally speaking on the West coast they rarely do these type of closings too expensive to pay 400.00 and hour.. and I agree with Zac.. ( of course if you already have the buyer) But very often buyers that go direct first thing they want you to do is LOWER the price since your not paying a realtor.. But if the buyers is known to you and you already have it worked out then that is one thing and pretty easy to do. But if you end up marketing it be prepared for pesky wholesalers and others .
8 Replies
- Real Estate Agent · Portland, OR · Member since 2017 · 85 posts · 37 votes4y
Quote from @John Smithey:
We live in Portland, OR where the market is pretty overheated. Wondering if anyone here has experience in that market selling their own residential property without a listing agent, or additionally where the buyer does not have an agent either (and both parties just use an attorney or attorneys to handle the transaction). Our home is currently unlisted, and we may be able to line up a buyer without listing just through our personal network. Google this question and SEO leads you to one million realtors trying to steer you away from this route, of course. But maybe it really is too fraught with risk and paperwork to be worth it?
Hey John,
I'm a realtor myself in Portland and am about close on the sale of my own duplex, great time to sell! I am not saying this just because I am a realtor, but there is a ton of value that one provides.
By listing with an agent you get access to the mls, where the majority of buyers are looking these days. I recommend opening it up to the mls, because even though you will have end up paying a buyers agent commission and commission for listing, your agent is going to end up selling the property for more in a large majority of cases compared to you trying to do it on your own. Over 90% of for sale by owners end up listing with an agent because there's more that goes into the transaction than owners think.
You're paying for marketing, taking the liability off your hands, not having to negotiate with other realtors, setup showings/open houses as well as more details that go into the transaction.
I'd love to talk more about the value and agent brings and answer all your questions. - Member since 2022 · 2 posts · 1 vote4y
For sake of argument, assume that I already have a buyer identified. Taking marketing completely out of the equation, are there still other considerations?
- Real Estate Agent · Portland, OR · Member since 2017 · 85 posts · 37 votes4y
Quote from @John Smithey:
For sake of argument, assume that I already have a buyer identified. Taking marketing completely out of the equation, are there still other considerations?
At that point you could go the attorney route. One thing to keep in mind is even though you do not have to pay realtor commissions going private, you still could be missing out on netting more by listing the property.
I recently put in 2 offers 60-70k over asking for one of my other buyer clients and still lost out by what the other agent stated as a "significant amount". You are giving your private buyer a great deal if they do not have to compete in this market. The duplex I referred to sold 50k over and I paid the buyer's commission no problem and would every time.
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Zac Lindquist:
Quote from @John Smithey:
For sake of argument, assume that I already have a buyer identified. Taking marketing completely out of the equation, are there still other considerations?
At that point you could go the attorney route. One thing to keep in mind is even though you do not have to pay realtor commissions going private, you still could be missing out on netting more by listing the property.
I recently put in 2 offers 60-70k over asking for one of my other buyer clients and still lost out by what the other agent stated as a "significant amount". You are giving your private buyer a great deal if they do not have to compete in this market. The duplex I referred to sold 50k over and I paid the buyer's commission no problem and would every time.
you can simply go to a title company to close this you dont need a lawyer generally speaking on the West coast they rarely do these type of closings too expensive to pay 400.00 and hour.. and I agree with Zac.. ( of course if you already have the buyer) But very often buyers that go direct first thing they want you to do is LOWER the price since your not paying a realtor.. But if the buyers is known to you and you already have it worked out then that is one thing and pretty easy to do. But if you end up marketing it be prepared for pesky wholesalers and others . - Real Estate Broker · Portland & Vancouver & environs · Member since 2019 · 17 posts · 11 votes4y
John,
Jay makes a good point about attorneys. But you do need to ensure that you have proper disclosures, etc. I, if not in the business, would probably have an attorney review paperwork, etc. to ensure all is legitimate. But you don't necessarily need an attorney to perform the entire process - depends on your time, financial situation, and your comfort level.
Pricing correctly is one of the biggest challenges a seller-owner faces. You don't want to leave money on the table whether or not your buyer is identified. On the other side of the coin, If that known buyer weren't to work out and you put your house on the market as a For Sale by Owner, you would need to be careful not to overprice. Overpricing isn't as dangerous as underpricing... it just slows down finding a buyer (until you adjust the price). You'll know the price is too high if there's no interest. You can have the house appraised (expensive) or just study (diligently) the surrounding market. Brokers create a CMA (Comparative Market Analysis) to help determine appropriate pricing. I would be happy to put one together for you - there is no charge - if you would like a broker's opinion.
There is a lot of paperwork and there are a lot of moving parts (inspections, appraisals, etc.). A title company and escrow officer are great resources. Selling on your own is certainly attainable. Drop me a message or an email if you'd like me to put together a CMA.
- Lender · Vancouver, WA · Member since 2015 · 482 posts · 316 votes4y
I sold my last home prior to getting my license to sell real estate. There are some pitfalls, although this doesn't mean that you can't get it done. The biggest caveat is to get as much advertising as possible, have an arm's length negotiator on your team - to take the emotion out of it, and not leave money on the table. For some sellers that means getting a Realtor, and some Sellers are comfortable with their own skills. It is a nasty-back-biting business, that is for sure! I have seen lots of contracts, and it always surprises me what people "give away" in the negotiation. But hey, that is their choice. Be aware, most Buyers have agents and they will seek compensation from you.
I usually tell people it is best to put the listing into the RMLS to attract the widest amount of buyers since this pushes the listing to all the websites except craigslist. If you want it in there as an FSBO, I can do that for you. Call me, and feel free to ask me all your questions. I have done this for many, including builders, other Realtors, or regular ole people. Some get it done and some just buy my discounted full-service option. Up to you - no pressure.
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes4y
As far as the technical side of things/paperwork goes, it's not that difficult and you could probably have a friendly title company walk you through the process. It wouldn't hurt to consult an attorney and pay them for some time to go over the contract, necessary disclosures, contingencies, escrow etc. as well if you're not familiar with everything. You could ask a Realtor to manage the paperwork for you as a transaction broker for a reduced fee.
However with the way the market is working, there's a big risk in leaving money on the table for you as the seller. I think our markets are similar as far as being extremely competitive currently, with many more people out there looking to buy than there are properties for sale. So you won't know the maximum price you can get for the property until you market it to the maximum number of people. The best way to do this is to put it on the MLS and offer the standard commission to buyer's agents (because most buyers will be working with an agent). If you list at the right price, market the property well and attract enough interest to get a bidding war going, you may be surprised at what you can sell for in this hot market (probably more than you would have saved by not paying agent's commissions). That's how it is here at least. We're seeing 10-20 offers on most listings and almost every single property is selling for 5-30%+ over ask. If a buyer can avoid having to get into a bidding war on a property and get it under contract before it hits the MLS, that's a major win for them.
- Real Estate Broker · Portland, OR · Member since 2018 · 123 posts · 71 votes4y
I am a broker - will put that out there right in front- in this market pricing is changing dynamically. When I work with a seller and give them listing comps, I pull new comps the day before I list it because pricing is ever changing. Some homes are going for $60-$100k over list price, so by not listing you could be missing out on that upside of this low inventory, ultra competitive market. You might also be missing out on terms that buyers are offering to net a sale. My last listing had multiple offers, appraisal gap language - meaning the buyer would bring money to the table if the appraisal didn't come back at value, PLUS many buyers are offering to waive inspections and release non-refundable earnest money prior to close. Those are all benefits to you as the seller. You only get those by putting the listing out there and allowing buyers to compete for it.
The other thing to importantly keep in mind as the seller, you are required to disclose certain information. Not doing so puts you in potentially liability. If you get sued, you are on your own. Using a realtor, the realtors insurance takes the hit, not you personally. The realtors job is to act as your fiduciary, maximize your value and protect you from litigation.
Happy to discuss with you.
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