Is FSBO a good idea in my situation?

Question

Hi all, this is my first question on this forum, hoping I could get some insights into FSBO. I'm planning on selling my CO-OP apartment in Queens NY. I did some research and it seems the seller broker+buyer broker fee together will be 5%, and if no co-broking, the seller broker fee alone is 4%. This could be around $25K for me. I am thinking about doing a FSBO. I know there are a lot of websites where I can post my home, like Zillow, Craiglist, FB Marketplace, etc. I can do a nice video showing my place and post it. I even read in one of the previous discussions that there is a way to obtain numbers from all renters in my area code and send them a short voice recording at a reasonable fee, although I'm not sure how to do it. I can find a title company or attorney to help with the closing.

The caveat is I might not stay around and show my place to people for a few months if the apartment doesn't sell right away. I might be able to stay for two weeks, do some showing, then I have to be somewhere else.

Do people in this forum have experience dealing with a FSBO when the owner is not always available?

Or do people have other suggestions for FSBO? Or do you think it's a bad idea and will end up costing me more time/money/effort then just letting a broker handle it?

Thanks y'all in advance!

Mike D. · Answer

You only offer the seller's share of commision. Here in Iowa if you have a realtor list your home you will typically pay 6% of the purchase price. 3% goes to the seller realtor and 3% goes to the buyer realtor. So I FSBO'd mine and had to pay 3% to the buyer realtor but I kept the 3%. It's not a dual agency because the seller's realtor is not representing you.

You need to find a FSBO service that will put it on the MLS. I paid my FSBO service about $1500 to run an appraisal and put it on the MLS for me. If I had hired a realtor that would have cost me about $9,000 plus the buyer's agent commission $9,000 for a total of $18,000 commission.

Joseph Cacciapaglia · Answer

I've been in the real estate business for 15 years, and I still use an agent when I'm selling my properties in a state that I don't have a license. You're just almost always going to do better when listed on the MLS. If you decide to go FSBO, you're really not going to save the full amount of the commission, because as @Marc Winter stated, buyers that shop for FSBOs are also expecting to get a better price than if they used an agent. Almost every person I've met that's tried to sell FSBO eventually decided to list their property with an agent. The only common exception is when people happen to sell to someone they know.

Steve Morris · Answer

"Do people in this forum have experience dealing with a FSBO when the owner is not always available?"

Am a comm RE broker and I'm constantly shocked at what brokers charge and how little they do.  I think it'd be worth trying FSBO for a couple of months since you'll prob get your best offer when it's "fresh".

If it doesn't work, take it off the market for a month, then hire someone to re-list it so it'll look relatively "fresh".

However, to get access to the listing services, you may need to go to a place like Redfin (not an good/bad endorsement of them).  Usually, you'll need to be a realtor (TM) to get access.

However, you may need to bump the buyer broker fee since brokers shop stuff based on their potential commission.

Jason Lee · Answer

Many of my exclusive listings started out as FSBOs. In most of those cases I was able to sell the apartments quickly and for a higher sales price than it had been listed for by the owner. It's about marketing, access, and vetting buyers (for a co-op). The average FSBO seller can't do it better than the average realtor, let alone an experienced top performer. You're admittedly going to have trouble providing access. As for vetting buyers, many brokers screw up co-op board packages, so it's not uncommon for FSBO co-op deals to fall apart or end up with board turn downs based on things that could have been flagged early on. You're trying to save on the broker fee but you could easily end up paying more in tuition attempting this on your own. You don't know what you don't know.

Marc Winter · Answer

You want to save the commission, so does the FSBO buyer.  Two people can't save the same commission.  If you have to ask on how to do it, I'd opine that you are not ready to sell 'by owner'.

Get yourself a good Realtor, one that specializes in co-ps in your area--there are many twists and turns in the road from listing to closing.

Ask for referrals, speak with the members of the co-op board, see if any broker name comes up several times (in a positive way!)  Good luck!

Scott Wolf · Answer

If you have to be somewhere else, and can't show it starting two weeks from now, your apartment will probably languish on the market.  So if you're serious about wanting to get it sold, you should get a broker.

Lydia S. · Answer

@Da Zhang

If you were to do this and went under contract in that two week period before you had to leave town, remember that you will have to put someone in charge of allowing access for inspections and an Appraiser while you are away.  If you were to use a realtor, they would be able to look after that.

Da Zhang · Answer

@Mike D. @Steve Vaughan You guys still did the showings yourself, right? So you have to be physically in the area?

Da Zhang · Answer

@Mike D. Thank you. Good advice.

Steve Vaughan · Answer

I'm no realtor and know nothing of NY co-ops but have a lot of experience selling FSBO.

I do it to pass value on to the buyer, not make the most money. But I sell for net long-time rentals that have punch list items to first time buyers.  If they want a buyers agent or closing cost help, they add those costs to their offer.  None haggle or bust me up with inspection repair items.

If I was selling my house and wanted top dollar, I'd probably get a pro.

Is FSBO a good idea in my situation?

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