Is it better to list my house myself vs going through a realtor?
Member since 2022 · 30 posts · 5 votes
Is it better to list my house myself vs going through a realtor?
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Rental Property Investor · Hammond, WI · Member since 2017 · 139 posts · 217 votes
4yI've done both but I prefer just letting a realtor sell it, in the couple cases where I didn't after the fact I think they would've ended up making up their realtor fee with a higher purchase price.
29 Replies
- Member since 2021 · 5 posts · 6 votes4y
If you want to sell it yourself, you definitely can. You don't have to use a realtor, you fsbo. I know there are extra fees using a realtor, but it can still be beneficial to do so. Listing agents have more ways to get visibility on the home which in turn can result in less days on market. The longer on the market, typically the less it will go for. Having an agent to help with negations is also beneficial. I would recommend weighing the pros and cons of using or realtor or going the fsbo route.
- Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes4y
Quote from @Alex Guerrero:
Looking to sell my home, but it is very much a home that will sell itself, how can i be the one to sell it insted of wasting money on extra fees of going through a realtor?
I am not a realtor. I don't use realtors. I am not opposed to realtors.
That being said, the mechanics are to figure out the value of your Palace, either by learing about comps or having someone knowledgable figure comps. Have someone who doesn't live in the home walk through and itemize the things that need to be fixed or improved. Then fix them.
There are services that will put the house on the MLS for $700. You can do that and pay the agent that brings you a buyer whatever their fee is.Or, you can place a sign out front and have unknown people walking through your house at odd times looking in your underware drawer and medicine cabinets. Hide you money, drugs and valuables off site.
If you do your own opens, do it for a couple of weekends.
Once you have someone interested, you fill out a purchase & sale agreement, collect an EMD, open escrow, order title, verify ability to close with the buyer's lender. Let them do their inspection and appraisal. Then an attorney or escrow will close and take money and record Deeds.
Can anything go wrong? Yep. In every deal there are issues to work out and it's up to you to decide if you want to resolve the issues or move on to the next buyer.
- Real Estate Agent · South Lake Tahoe, CA · Member since 2016 · 680 posts · 644 votes4y
@alex
On average, realtors will sell your home for 15% more than a FSBO will. Show me the waste.
Also, if you're not very familiar with the contracts in your state, it's very easy to make a big mistake. I just had a buyer that I was representing put a FSBO under contract. The owner had no clue and didn't initial the "liquidated damages" clause. Here in California, that essentially means that the buyers earnest money deposit wouldn't be at risk regardless of what they did. Simple things like this are why you hire a realtor.
- 4yMalcomb StapelPro MemberInvestor · Topeka, KS · Member since 2020 · 669 posts · 488 votes
Quote from @Alex Guerrero:
Looking to sell my home, but it is very much a home that will sell itself, how can i be the one to sell it insted of wasting money on extra fees of going through a realtor?
If your going to just go with any Realtor, or your family friend/acquaintance that is a realtor, you might as well just sell it yourself. If your going to be diligent and actually find a professional (which will be difficult) then it could more than pay for itself to hire someone.
Realtors are the same percentagewise as any other profession, whether it be doctors, lawyers, contractors, you name it.
10% are garbage
80% are average
10% are pros
If you can find the last 10%, go with a Realtor and make your life easier.
- Real Estate Agent · Daytona Beach, FL · Member since 2019 · 37 posts · 15 votes4y
I would recommend a realtor, but I am biased as an agent myself. There is a lot of work behind the scenes and you are likely to end up ahead.
But as a FSBO, I would to make sure you are pricing your house accurately with comps, hire a professional photographer, pay to list your house on the local MLS to make sure the people you want see it, hire a real estate attorney, and prepare to deal with buyers. Additionally, title companies and may have an internal real estate attorney to help with the contracts and sale.
Feel free to reach out if you have any questions!
- Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes4y
@Alex Guerrero
I listed my house for sale by owner a few years back. I received 15 or 20 offers and most of them were from investors who scouted websites like Zillow, realtor.com, and redfin. I ended up selling for more than I anticipated. In hindsight, I should have listed it with a realtor. I would've gotten a lot more. The reason I say that is because when you list a home with a realtor, you get exposed to who I call "desperate homebuyers."  Most realtors who are representing buyers are only going to show them homes that are listed on the MLS.  The buyer like most buyers will submit seven or eight offers and get outbid by cash buyers. At a certain point, they will get desperate and begin to offer 50,000 or 60,000 above the asking price just to get a home. They will waive contingencies and find a lender that can close in 15 days or less. In my opinion, this is when having a realtor comes in handy. These offers will essentially pay for their fee and get you to have a better return on investment. That's what you need to think about. Will the 6% you agree to pay a Realtor be a good return on investment versus the Buyer pool that you get exposed to. 80% of buyers will use a realtor.
Lastly, a few years back I had an agent approach me to list my home and he was willing to take a 2% commission.  He was a newer realtor and I had experience reviewing offers because I’m a full-time loan officer. I don’t suggest this but it all worked out and I got exposed to the Buyer pool I was looking for.
- Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes4y
@Ronald Stanley
I forgot to add. If you end up taking a cash offer, you can always pin the cash offer up against the highest financed offer that you have. The more leverage you have the better.
Get a Realtor. In this market, they will pay for themselves. The buyers realtor will be essentially working for you and convincing the buyer to waive every contingency known to man and get you the highest price so that they don’t have to show the buyer another eight homes before they get paid. Just my thoughts
- Lender · Dallas, GA · Member since 2016 · 47 posts · 36 votes4y
@Ronald Stanley
This is my last piece of advice. A realtor’s contract is set up to protect you against lawsuits. If you don’t want to use a realtor for any other reason, this is why I would use one. You don’t want to use a contract off of Google. You expose yourself to a lot of Unnecessary risk. For sale by owner transactions were originally created when grandma is selling her home to grandson. There’s less legal things you have to worry about in this situation. If you’re selling your home to a stranger, have a solid contract that has been tested in the courts.
- Member since 2022 · 23 posts · 13 votes4y
I’ve done both. I hate the commission costs but appreciate less headaches. The choice depends on your threshold of what hassle you are willing to put up with vs what expense is worth it to avoid the hassle.
- Investor · Van Isle · Member since 2021 · 455 posts · 226 votes4y
Quote from @Alex Guerrero:
Looking to sell my home, but it is very much a home that will sell itself, how can i be the one to sell it insted of wasting money on extra fees of going through a realtor?
With such a general question, I'd recommend going with a Realtor. The power of the MLS is undeniable. Unfortunately, Realtors come in many forms, and finding one you feel comfortable with an be a challenge. If you were more knowledgeable about the process, as indicated by representative questions, I would say you could go your own way, but even then, considering the commitments, a Realtor can bring excellent value.
- Akron, OH · Member since 2015 · 178 posts · 189 votes4y
Quote from @Nathan Ruffrage:
I’ve done both. I hate the commission costs but appreciate less headaches. The choice depends on your threshold of what hassle you are willing to put up with vs what expense is worth it to avoid the hassle.
This is the best answer, and is the basic spirit of what business people have to consider for all of their subcontracting decisions. Just because you can do something, doesn't mean it's in your best interest to do so. - Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes4y
If you have some experience with buying and selling, for me, the best way to go is with a Flat fee agent that will put the house in the MLS and give it the exposure that any agent will give.
Discount agents come with different levels of service and you can figure out what level you need. One thing you might consider paying for is a a broker opinion of value to set your price. Even a house that can sell itself needs to have the right price. The broker price opinion is based in comps so is not rocket science either.
You still have to pay a commission to the buyer's agent. Normally 3% and you can do 2.5% but a few buyer's agents will not be as wiling to show your house.
Here, in Georgia, all agents use a standard contract so I don't need to run the offer by a lawyer. Also when I get a buyer that does not have a lawyer, I can use the forms from my discount broker. (and don't pay commission)
You will do some work but you can make 2.5% of the value of your house (tax free!).
- Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes4y
Use a realtor.
- Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes4y
Use a realtor and you will get more for your home than selling it yourself.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes4y
Basically - If you want more work, more risk and sell it for less then FSBO is right for you. In the age of Uber and other disruptors the reason why 96% are sold by an agent is because it makes sense (end cents) - otherwise, there would be an app for that ;-)
Here is the better question: how do you find a great agent? While you may think agents are all the same, it is just the opposite.
Want to net an extra 10k or 20k? Spend some time finding an expert!
- Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes4y
Yes, you can cut your hair yourself, you can floss and deep clean your teeth too , also prep your own avocado toast with your own squished Orange for drink..
Then why do we Pay extra for those services?
We do it because we trust in the professionalism , abilities and more importantly the efficiency of the process. The hairstylist, that's what they do 24/7, Dentist knows the ins and out of your mouth and the restaurant is capable of basically save you time and perhaps surprise you with new mist of flavors.
Ultimately these traits are saving you time and time is more important and expensive than 3-6% commission ( obviously depends on your conditions and your goals) so ask your self that question .
But if you already have your next plan lined up and want to become more efficient and quick on getting you cash and vamp up your business , then yes ill suggest that route until you do this enough and then get your own license and then you add a bit more capital to your business .
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes4y
@Alex Guerrero The #1 mistake persons make in considering HOW TO SELL is using tunnel-vision in looking at just 1 of the parameters, Cost To Sell.
In Cost-To-Sell, most often a person will find it cheaper to FSBO BUT, that is not always the case. (again, we are talking hard-costs alone here). Let's say you really want to maximize potential, get in amazing pro photography, maybe some drone shots, possibly a 3D virtual tour. Then add staging, and now into marketing, how to pump it out there for maximum exposure, now we are paying all these sites to list and promote, burning a few hundred on FB ad's, a few hundred on this site, a few hundred on that site. Next thing you know, staring at $10k in these hard-costs. A GOOD agent will cover some, possibly all of these inside of there fee's. And for those not covered by them, there going to get you exclusive discounts because they are a volume client. Myself personally, I have multitudes of these covering anything from closing costs too photography, inspections etc., again because I am a VIP client for these vendors.
Now we have where data get's interesting, RESULT of the sale. Yes, there is a ton of data out there clearly saying Realtors get more, and honestly it shouldn't be a surprise because we simply have more resources, more experience with those resources, more connections, huge network day 1 and on and on. BUT, this is all conditional on WHO your agent is, not all Realtor's are the same, 80% are worthless part-timers, that's the truth and reality and NO, those won't bring much if any value. So in the resulting $ of the sale, it's not an agent or no-agent question, it's a WHAT agent question.
Last and MOST important is CYA and negotiations. To put it simply there is a MOUNTAIN of contracts out there and as a good agent, we know all of them inside and out. Having such commanding knowledge, that stack of 84 pages is just a light read and simple navigation. I can pluck out all the sneaky BS in a PA in about 5min, AND I know how to write them to have maximum visual appeal with maximum client protections and rights. The contracts aspect is major, VERY major, not to mention it can make massive $ differences in a sale. Who is contributing and covering what and translate to big $ at the closing table.
Without doubt int his market a property can sell itself, so can my car, or a can of soda, if it's an awesome enough deal right, so nothing special there. As a seller you don't want to JUST sell your place, you want to MAXIMALLY sell the place, THAT's the key difference. So if you just want to sell it, ok, throw out a Craig's List, have at it. But when you want to MAXIMIZE that sale, get a Pro, get "The" Pro of PRO's, hire the best and let them run with it. You don't see Elon out there trying to sell Tesla's do you? Or B.Gates at Office Depot trying to sling a 365 subscription right. Simple law of the wildly successful is hire the best and let them do what they do.
- 4yPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Alex Guerrero
Aside from what people have already mentioned, the big ones are the MLS and experience (experience in the market and the process). A big one for me would be the time. For example, would you learn on YouTube how to fix your engine if your car was having engine issues and waste time doing so or just take it to a mechanic? I am not a mechanic, so I would just take it to someone who knows what they are talking about instead of trying to save the money and end up making it worse in the end. Those are two completely different jobs, but it illustrates the same premise. I just think the time piece is important for me. - Anchorage, AK · Member since 2017 · 3 posts · 5 votes4y
Go with Redfin who charges 1.5% and set the buyer's agent commission to 1-1.5% - the most you'll pay is 3%, which is what you would pay by selling it yourself and selling it to someone with at realtor. This way you get some representation and listing on MLS.
- Realtor · Branson, MO · Member since 2018 · 272 posts · 283 votes4y
Quote from @Malcomb Stapel:
Quote from @Alex Guerrero:
Looking to sell my home, but it is very much a home that will sell itself, how can i be the one to sell it insted of wasting money on extra fees of going through a realtor?
If your going to just go with any Realtor, or your family friend/acquaintance that is a realtor, you might as well just sell it yourself. If your going to be diligent and actually find a professional (which will be difficult) then it could more than pay for itself to hire someone.
Realtors are the same percentagewise as any other profession, whether it be doctors, lawyers, contractors, you name it.
10% are garbage
80% are average
10% are pros
If you can find the last 10%, go with a Realtor and make your life easier.
Malcomb, I like how you said that! Just like any profession. I'm a realtor and I think it's more like 30% garbage, 50% average and 20% pro.
If you want to sell your house, go for it. Maybe if you get arrested you can just be your own lawyer too. And if you get cancer, you can be your own doctor. Or like @Patrick Drury when your car breaks down, be your own mechanic! Who needs realtors anyways?! I wouldn't want to waste fees on doctors, lawyers or mechanics either. - 4ySebastian MarroquinPro MemberReal Estate Agent · Pasadena, CA · Member since 2015 · 476 posts · 263 votes
This will maybe be market specific but I’ll ask you and anyone else that is not a Realtor on here:
(Let’s say that your home is worth $500k right now in its current condition)
And I offered you $510k : would you take it?
If your answer is yes: then I would suggest you use a Realtor. :) (Keep in mind the home is worth $500k )
Why? You may ask… well because selling a home is not just about marketing, or photos, or putting a home on the MLS… There's way more than that.
Negotiations are a huge part of this along with everything mentioned above.
Unfortunately, you will probably list for $499k and get an offer for $515k in the first 3 hours and you will feel great and think that you did a great job. Lol and will never know how much money you left on the table. (Not your fault, maybe some of the people at fault here are the realtors that you have worked with that were unable to explain their value to you).
Many- many - many home owners will sell for sale by owner and will avoid paying a 5% commission (on $500k that is $25k ) and miss out on $50k or more, plus they will not build a relationship with a realtor that could bring them a deal to buy there after and make $100k to $200k in the new purchase. You get what you pay for in all cases: while shopping for food, clothes, attorneys, CPAs, Doctors and Realtors.
Consider this: Are you better at doing your job today than you were 5 or 10 years ago when you first started?
Also: are you better in your industry than other people? And are other people you look up to in your industry better than you? Chances are the answers are, YES!
Focus on what you do, stop having a scarcity mentality and work with the best. You will make way more money by working with honest, ethical, and knowledgeable professionals in any field.
Let me know if you would like me to net you an extra $50k to $200k on a sale or find you a deal to purchase where you could walk in with $100k to $300k in equity? (I hope that my commission won’t be in question when you see I can get you these results) :)
- Investor · Cary, NC · Member since 2019 · 25 posts · 29 votes4yIt really based on you but if you are familiar with running comps and understand the market value of your home than you could run the risk of losing money. Definitely figure out what improvements will help the sell of your home and making sure that you have great photo of the home when you put up and start marketing.
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes4y
I usually sell FSBO but have been doing it for years and have the forms and disclosures.
As mentioned, your buddy or family member agent will probably suck. Mine certainly have.
I will never again list a vacant house.
It's not your stuff you have to worry about strangers seeing. It's all the agents that leave your lights and heat/a.c. on and doors wide open.
I sell FSBO to control the transaction and who walks through, not to 'save money '. You have zero control over pretty much anything when you list. Just another person who has to tell/ask another person to tell ask another person. LOL
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