Real Estate Investor · Ames, IA · Member since 2009 · 4 posts · 4 votes
17y
This is a mixed issue. FSBO owner can take time and expense for advertising, showing the home, etc that an agent will do for you. If you are buying and selling a lot of homes you should deal with one agent/broker and they may give you a deal on commissions due to the number of commissions you bring to them. There are people out there that won't buy from FSBO because they feel an agent will protect their interest.
There's always the option of doing FSBO for the first 2-3 months and if you don't sell then list with an agent.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Well, according to NAR - National Association of Realtors (and we all know they are never wrong . . .) people who sell their home with a Realtor get more money for their home compared to FSBO's. (Of course they fail to mention that those same people had a 6% higher cost factor too!)
As an investor, it pays to find the least expensive way to sell and thereby increase your profit margins, but for homeowners, they may not have the time, knowledge, or ability to properly market and sell their own home, so I have mixed feelings on this topic.
Real Estate Investor · Ames, IA · Member since 2009 · 4 posts · 4 votes
17y
This is a mixed issue. FSBO owner can take time and expense for advertising, showing the home, etc that an agent will do for you. If you are buying and selling a lot of homes you should deal with one agent/broker and they may give you a deal on commissions due to the number of commissions you bring to them. There are people out there that won't buy from FSBO because they feel an agent will protect their interest.
There's always the option of doing FSBO for the first 2-3 months and if you don't sell then list with an agent.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Just my $.02...
While some real estate agents are worth every penny (my wife, for example :), if someone is comfortable listing their home without an agent, they'll probably do just fine listing FSBO.
But, the one thing I would recommend to anyone listing a home in today's market is to ensure you list it on the MLS.
You don't need to pay a realtor 5-6% to do this...there are plenty of listing agents out there who will list for a flat fee ($500-700), and you get the full benefit of being able to market to other agents and their buyers via MLS.
Real Estate Investor · Portland, OR · Member since 2009 · 660 posts · 244 votes
17y
Originally posted by Jeff Tumbarello:
As an investor I have done both. It really depepnds on the market. In a really hot market. You do not need the agent.
In this market, you really need an agent
Couldn't agree more with Jeff ... hot markets you can can probably save some money listing yourself but in this market, you need all the help you can get!
Tucson, AZ · Member since 2008 · 945 posts · 45 votes
17y
It is a mixed issue. I have my former residence listed via flat fee on the MLS. It's also on Realtor.com, Owner.com, Craigslist, and many others.
There have been few calls from REAgents, and as few from individuals. Part of the problem is the economy, I'm sure, there is little moving here, I think.
I may do a "5 Day Sale" on in at the end of July if there is no activity, and if nothing happenms then, I have the decision to either list it with an agent or rent it. I do not want to rent, but will consider it.
I moved into a rental I own, but before that I did a 5Day sale on it. There was a lot of interest, but the top bid fell way short of the reserve amount.
My timing sure was bad!
Ofgift
Tucson, AZ · Member since 2008 · 945 posts · 45 votes
17y
For anyone considering flat fee mls listing, some questions to ask--wish I knew beforehand) things I didn't know:
MY phone number is not on the public information. My lister (via Owner.com) is in Phoenix, a long distance phone call away, and people may not make that long distancephone call. It threw agents off, and a couple asked me about it.
The flat fee listor wanted to rent me a keysafe for $100. I bought one at home depot, and he had keysafe info on the agent info. After a few agents showed the house, I got an email from the lister, saying they had to remove all info about a keysafe from the agent sheets.
Be sure your flat fee lister is a local lister, and find out what info you can and cannot put on your listing.
One question _I_ have is whether agents are Does the NAR tell agents to shun or boycott people who try to sell themselves?
Property is not moving where I am, but I would have thought that a few more agents would hav showed it...
Ofgift
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
17y
If anyone here finds themselves unable to participate in a discussion without soliciting business, we'll be happy to prevent you from posting in the future.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Originally posted by Ofgift Gift:
One question _I_ have is whether agents are Does the NAR tell agents to shun or boycott people who try to sell themselves?
Property is not moving where I am, but I would have thought that a few more agents would hav showed it...
Ofgift
As far as I know (my wife is a realtor), there is no conspiracy whatsoever to keep FSBO sellers who list on the MLS from getting traffic.
In fact, it wouldn't make sense from an agent's perspective. The agent knows that anything on the MLS will generate a commission for them, so they're happy to show any of those properties. The more choices for their buyers, the more likely they are to get that commission.
Lastly, depending on the flat-fee listing service you use, it's likely that the selling agent (the one representing the buyer) will have no idea that you're FSBO and using a flat-fee service. So, in that respect, it really shouldn't matter.
Real Estate Investor · AR · Member since 2008 · 17 posts · 4 votes
17y
I am new to this. I am aware the agent is an extra cost, but it is somewhat factored in on my first rehab. Also since I am new I think the agent provides some protection for me and gives advice on what to concentrate on as I finish this first rehab. I am not yet comfortable enough or experienced enough to sell FSBO.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
17y
Originally posted by Wes Marden:
I am new to this. I am aware the agent is an extra cost, but it is somewhat factored in on my first rehab. Also since I am new I think the agent provides some protection for me and gives advice on what to concentrate on as I finish this first rehab. I am not yet comfortable enough or experienced enough to sell FSBO.
As long as the cost is factored into your flip, there's no reason to ever try to sell FSBO in this market, especially without any experience.
Again, while you don't necessarily need a realtor, you do want to take advantage of the accessibility of the MLS to the majority of buyers out there.
Tucson, AZ · Member since 2008 · 945 posts · 45 votes
17y
I chose to do FSBO because the agent I wanted to list with had a few things in her contract that I would not agree to, and a couple of others I wanted to discuss with the intention of removing them or easing up on them. She totally refused any discussion on any of the points. I couldn't believe her attitude.
She said, nose in the air, "Sell it yourself. You'll be happier."
I looked at a few other listing contracts, and at that time came across the book, HOW TO SELL YOUR HOME IN 5 DAYS. After reading it, I knew I could do it myself. I am as much a neophyte at this as you are, probably more so, and I know I can do it. Read the book, I think you may decide the same thing.
The other contracts were more to my liking, but after reading that very easy to read book, decided to sell on my own. It gives all the steps and info needed.
In fact, I just made an appointment to show it. Wish me luck!
Ofgift
Investor · Mesa, AZ · Member since 2009 · 3 posts · 1 vote
17y
As a investor in Az. I first put a FSBO sign on it while being re-habbed,,. 2 wks after completion depending upon interest it then goes into MLS @ 1% w/ a trusted friend and old client.Btw have also found that title companies will do most of the work for you.Just make an appointment and tell them what you are doing and they are happy to help you....Even have had them draw up contracts......
Boston, MA · Member since 2009 · 23 posts · 5 votes
17y
I agree with the other posts that in a hot market, selling your home as a FSBO would be fine just by listing your home on MLS and advertising on Craigslist. However, in a normal or down market such as now, an agent can be very valuable and should be used unless the seller is committed to taking the time to advertise regularly, set up open houses and schedule showings for every interested party and also KNOW the market in their neighborhood well so that a buyer with an experienced buyer's agent cannot get you on all the points why your home is not worth what you, the seller are asking for. As a former real estate agent, now full time investor, I can say without any beneficial interest to myself that an agent can be extremely helpful. A good agent should regularly advertise your property (not just post up an MLS listing) and talk to other agents about your home for sale, and also set up open houses every 2 weeks, if not on a weekly basis. A good agent should also give you advice on how to make your home more presentable and give you their justified opinion on what you should sell your home for, which is for your benefit because this would take away one reason a buyer might try to make in saying that your home is worth less than what other comparable homes have sold for.
So that's my 2 cents, hope people find it helpful =)
Real Estate Investor · Salt Lake City, UT · Member since 2009 · 4 posts · 2 votes
17y
When I read some of these posts it reminded me of how I used to feel about this subject.
Once upon a time, I used to make that judgement, that there is a right and wrong time to do a FSBO. For me, it boils down to how much money your are looking to make and how hard you want to work for it.
Selling a home is a lot of work. I would rather move 6 or 7 properties in the market at a time then fuss over one property just to maximize my profits. A good agent will sell your property for more than you could and maximize your profits. I prefer to have good agents in each area I work that will represent my interests. I have 6 or 7 people doing the job on 6 or 7 properties and I stand to make 6 or 7 times the profits.
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
17y
Type of property matters, too.
Mutl-families sell primarily to investors, so a good agent would have contacts, plus exposure to the mls. Last time I had a multi-family for sale I searched out all the other investors in the area and sent them a personalized letter before listing with an agent.
Neighborhood and competition matter, too. If the property is in an in-demand area a fsbo should work. But if there are a lot of For Sale signs around your only leverage is pricing below market or offering seller financing.
Specialist · Riverside, CA · Member since 2008 · 382 posts · 72 votes
17y
As long as you are not in a declining market try. it your self. If you find your unable to find a buyer after a few weeks start interviewing agents. Be sure you listing agreement excludes any potential buyers you meet when selling FSBO.
Residential Real Estate Broker · Conroe, TX · Member since 2008 · 1k+ posts · 43 votes
17y
Like previous posts mentioned...depends on the market.
I agree with starting the process as FSBO to see what type of traffic I'm getting. Keep track of potential buyers so as to ask for exclusions later on. Make sure it's priced in line with the market. Check with an appraiser and ask if he's willing to do a quick desk review to help you set the price point. Or, check with a couple agents ask for CMA's. Be upfront and let them know that you're going to attempt to sell it FSBO at first and, if it doesn't go after a short period, you will be looking for a good agent. Ask them if they will give you a discount on commissions.
Talk to some lenders to become familiar with available programs. Have a mortgage person lined up who can quickly prequalify potential buyers. Sometimes if you find a good mortgage person, they'll handle a big portion of the transaction's oversight so that you don't need an agent. Talk to a title company and obtain a fee schedule maybe even a preliminary title report. Obtain and review a selling contract, seller's disclosure, financing addendums along with any other property specific disclosures/addendums.
If after a few weeks you don't see the traffic that you want seriously consider MLS at a discount or with a full service brokerage. Make sure to include some type of exclusion for leads that you may have already generated. I would also ask for a performance clause in my listing agreement under special provisions allowing me to cancel the listing for any reason prior to receiving an acceptable offer (without penalty). If I don't see the results that I'm looking for I don't want to be locked in.
Real Estate Investor · Columbus, OH · Member since 2009 · 15 posts · 2 votes
17y
In many cases these days, it seems that being creative has been key to selling. Agents/realtors seem to have to follow more rules, policies, or proceedures which may not be as productive when the economy/market isn't doing very well. FSBOs leave a lot more room to be creative with financing.
Real Estate Investor · Redlands, CA · Member since 2009 · 74 posts · 4 votes
17y
I have done it both ways many times and both have worked great. i also agree with all above. but remember BUYERS don't think like all of us and they don't know as much so would most likely want a realtor for there protection. and there are two things that sell our houses ( price and exposure) a good realtor is just extra exposure. Half the times i go fsbo it's a realtor that brings the offer
Real Estate Investor · Columbia, SC · Member since 2009 · 58 posts · 5 votes
17y
If the property is turn key, then I would definitely say an agent is the way to go. I worked with a great agent in Eagan, MN on a condo. He had a website that updated me before every showing and had a follow up email with the prospective buyer's comments and feedback from the buyer's agent.
However, in my experience, agents are not the best when it comes to fixer-uppers. If the house has multiple issues to be deal with and you're trying to sell as is, I would definitely sell by owner. I've dealt with too many agents who over emphasize the problems in the beginning of a phone conversation or showing, and they will always promote the more quality listings first.
Real Estate Investor · Sugar Hill, GA · Member since 2009 · 11 posts · 0 votes
17y
You really have to take in consideration the time you have available, costs, and if you have the right attitude to deal with the issues that come with selling the home on your own. I personally like the challenge with selling homes myself without using an agent. I have not tried a flat fee listing before, but I might try that on my next project. I basically set up a voicemail service and place signs in surrounding areas. I always receive an abundance of calls and from that point it is just a matter of finding the call that is serious and wants to move forward. I have used agents in the past but now I like trying to sell it myself.
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
16y
Having been used to states with Title companies handling closing, I had been used to their gouging fees of 3-5K from your net proceeds. I go to NC for awhile and then sell the property for 2.3M and the attorney closes the transaction for $550 which included a Seller's Title Insurance policy from Chicago Title. Where does all the money go that the Title companies take in?? They like the realtors have been paid and the homeowners losing their homes are the ones getting hurt.