I want to list a home and am trying to think of alternative ways for my property to get attention. It is in a housing market that is predominately short term rental and the market activity has slowed significantly since corona.
One thought I have is to sell it FSBO and offer a high buyer (4%).
My question is - Should I list it for 4% less and try to go after buyers with no agents or offer the high buyer commission and gross up the selling price. The selling price in each scenario is 620k vs. 595k.
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
6y
Hi @Jeff Halverson! This is a great question to ask and I hope I can add some value here --
Based off of statics (something like 87% of home sales have at least one agent in the transaction), I would anticipate offering a higher-than-normal buyer-side commission being a more effective strategy than offering a 4% lower price predicated on the buyer not using an agent. Basically you could view it as fishing in the 87% pond or the 13% pond . . . it's possible to sell in either pond, but in a shaky environment I would fish in the surest one.
Also, in this example your net proceeds would be the same; I'd welcome the opportunity to have their agent do the heavy lifting if it isn't' coming out of my pocket.
@Will Fraser Thanks for the input Will! You make a great point about realtors being involved in the vast majority of real estate deals. I was reading another blog and it reminded me that although worming through a real estate deal may not be intimidating to me but is for a lot of buyers.
Also, I am not trying to take anything away from a seller agent but I’ve always felt that many times, they list the house and then sit back and wait for a buyer. I am hoping a buyer agent will really push this one given the high rate of commission.
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
6y
@Jeff Halverson, you mean agents don t get excited about 2% x 600k?
Free marketing advice: 1.find out who other STR owners are in a couple block area and call/ send them info.2. Get in contact with local REIA, they have contacts of interested investors 3. Run a FB ad for one month targeting investors in 30 mile radius.4.Give people a marketing referral fee if they introduce buyer to you.
You are under no obligation to pay a buyer s agent if you list the property yourself. Have you checked if there are FSBO advisors in your area?
@Todd Goedeke 2% of 600k is nothing to balk at, but I am wondering if an agent would be more eager to show to potential buyer in my case.
The other marketing you mentioned makes sense to me as well but the property is out of state, I really don’t want to spend a ton of time marketing yet.