Do I need a selling Agent?

Question

I am thinking of selling a 3 family investment property.  Can I save commission by not using a Selling Agent or is it better to have one?

If I don't have one do I save or does buying agent profit more?

Caleb Heimsoth · Answer

@Stephen Neto I think it really depends on price point and how much time you have.

I’ve sold stuff with and without agents before.  I just sold a rental In memphis last year with zero agents and no marketing.  So it’s definitely possible.

That being said I used an agent for selling my rental in Cleveland and it was worth it.  He got it sold (under contract) in 5 days and was worth what I paid him because he handled the inspection, all the negotiating with the buyer, coordinating with the lender.

Charlie MacPherson · Answer

@Stephen Neto  You can definitely sell it yourself as a FSBO.  The question is whether you should.

Every study I've ever seen says that selling with a Realtor nets the seller more money, even after paying commissions.  Those numbers run about 16% higher.

I'd speculate that these are some of the reasons:

• We can expose it to more potential buyers
• We are better at marketing and negotiating than a layman
• We have tricks of the trade to stimulate a bidding war (I've recently sold properties at $42K and $46K over asking - and I got one of those buyers to waive his home inspection!)
• We know how to tell a real pre-approval from a worthless one
• We know what question to ask buyers to tell if they're real or tire kickers
• We can publicize open house events better than a layman
• We know what pitfalls to avoid and what disclosures and forms to use to avoid trouble
• We know how to make peace between the parties when things get tense
• We know how to talk skittish buyers down from the ledge and hold the deal together
• We know what properties are likely to fail FHA, VA and USDA inspections.  
• We know what repairs to recommend to ensure that appraisal failures don't happen
• We know the sneaky tactics some buyers use like over bidding and then hammering the price back down with the results of the home inspection.  And we know how to defeat them!

Sure you can sell on your own.  Lots of people do it.

Just like I'll do a lot better with a financial advisor than doing it on my own.

The question is how much money you're willing to leave on the table and how much risk are you willing to take on.

Frank Wong · Answer

Hi Stephen,

I am a licensed broker so you can view my post as being bias but I am just telling you what I know based on my experience.  If you do not use a listing agent to sell your investment property you will save on the listing fee. FSBO will take longer to sell and usually sell at a lower price than using an agent.

Hiring the proper agent will save you time and will attract more buyers to your property.  Paying the commission is worth it because of these two factors. An agent will also prepare all the proper disclosures needed for the sale.

In most cases, sellers that try to sell their homes try to list it at a price more than its worth and it ends up sitting on the market.  I had shown a client a condo about 6 months back and it was overpriced about $30k.  My client was ready to put an offer but the seller didn't want to budge on the price so we moved on. That condo sat on the market and continue to sit.  The market softened and I saw the condo listed for $70k less than the original price and still no offers.  In this case, the seller could have sold it 6 months back for more money and saved himself time.

Now I am sure there are going to post from FSBO saying it was easy and they sold it.  I am sure they did.  I think it will depend on how much you value your time.  Can you spend all the time needed to market and sell the property?  Are you willing to risk selling it and not have all the proper disclosures?  Are you willing to risk losing out on a buyer that a listing agent can bring in?  These are things to think about.

Shawn Mcenteer · Answer

Yes you will save commission by not having a listing agent.  Will you make more money by not having one is entirely up to you.  If you think you can price property properly, get proper exposure, and be available to show unit then you may want to give it a shot.  Proper realtor should maximize your profits.

Account Closed · Answer

You'll save money on a commission with FSBO, but the buyers always seem to want the money you save and offer you less.

Stephen Neto · Answer

Good pointers all.  I think I'll stick to what I know and let the professionals handle the sale. Thank you all!

Josue Vargas · Answer

I think since you have the offer already, I would learn more about FSBO and get everything ready.  You will save the seller's commission and learn in the process.  Big win if you really knows the value of the property in your current market.

Stephen Neto · Answer

Well the think is I was presented with an offer.  I don't have it listed and if I can get the price I need I will sell.  I had no intention of selling but if someone comes to me with an offer that will make me walk away from property, I will.

So can I can I sell the property alone (without selling agent) if buyer agrees on price with above scenario?

I realize we need a lawyer for closing but want to get all other documentation processes correct if I do it alone to save on agent fees.

Do I need a selling Agent?

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