Selling FSBO while tenant's lease is still active

[Jay Yoo]

Hi All, Hope you guys and your family stay safe and healthy during this time. 

I've decided to sell rental property, small 2/2bath condo. This was my first investment property, I know that numbers didn't work when I bought it in 2019 but it is in the great location, cross street to Metro terminal AND Lightrail station in 2024. I worked hard posting the unit and attracting the unit to local college so I was able to turn the living room into a room with curtain divider. So barely making cash flow, not even close to 1% due to HOA increasing. That's ok at the end because I learned a lot in REI, and the more I get educated, the more I know that this deal is no good and needs to be gone for good. I could hold it find since the vacancy rate is 0% but I would like to be ready for next year so want to hold cash.

So while the inventory is low in WA, I decided to take advantages and even FSBO using online service like Savvy Lane. I'm not promoting them here but just wanted to see if anyone out there had experiences, good or bad.

I have three students living in my condo and individually contracted until June 30 2021 with good security deposit. So they behave well. I haven't told them yet but soon. 

Would you tell me your experience on any FSBO online services 1% fee with $495 upfront listing fee. If I use their service, I would save approx $8,000 commission fee to Seller's and Buyer's agent. I know there are a lot of agents here, but dont' get me wrong. I like working with agents but this time I need more profitable on this sale.

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Their highlighted services as below

Listing term 1 year

MLS, Realtor.com, Zillow, Redfin, Trulia posting

Selling Forms and Disclosures, Docusign type of secure digital documents

Proffered Title and Escrow, Phone/Email Forwarding

7 days phone support by Live person

Schedule Open House

Virtual Tour,

Unlimited Changes to Listing

Thank you for your thoughts and inputs! 

[Russell Brazil]

With tenants in the property, it will be very hard to sell.  You essentially eliminate 2/3 of potential buyers right off the bat. (2/3 of properties are owned by owner occupants).  Of that 1/3 left that own rentals, you will eliminate a high proportion too, ones that dont like condos, ones that dont like to inherit tenants, if you arnt making much cash flow that eliminates a big percentage.