My husband and I are looking to move soon. We were considering the idea of selling our place ourselves. Reasons I think we can FSBO: 1.This is the third home we have purchased (and now will be selling) in a 10 year period, so we are familiar with the process. 2.For our last two places, I read a lot about staging and worked hard to clean, repair and stage well. My husband took the photos (he has a nice camera and has taken photography classes) The realtors were so impressed one shaved 0.5% of her fee off since she didn't need to hire a stager or photographer and another agent asked us to stage and photograph another one of their listings. 3. Our neighborhood is only 5 years old and there are only a handful of floor plans. There are 4 identical floorpans that have sold in the last 6 months so I've got great comparables. We also had an appraisal done in the last 90 days so we have a pretty good idea of what it will sell for. Since it's so new (our house is 2 years old) there are no problems with the house--it still has that new house smell. Reasons I'm afraid to FSBO: 1. You hear horror stories of things going wrong. The Real Estate Profession exist for a reason, they are professionals with a lot of knowledge and in my experience a good one can spot and handle issues before they become big (and costly) problems. There are a lot of I's to dot and T's to cross in a real estate transaction and they do this day in and day out. Real estate agents can take a lot of the stress out. 2. How much do you really save? Real estate agents say they can get better prices so is it really worth the hassle? Most people around here use a real estate agent so I don't think I will be able to avoid the buyer's agent fee, but saving 3% would be a huge number as our house appraised for $480,000 and most of the comps are in the $460's Thoughts?

FSBO: Is it worth it?

Rental Property Investor · Indianapolis, IN · Member since 2012 · 91 posts · 41 votes

10y

I'm also considering a FSBO in the future. I'm considering because houses in our neighborhood sell fast but always at the exact same price (cookie cutter houses with high price per sq/ft).

Do houses in your neighborhood sell fast?

Is there a lot of price variation or are the price per sq/ft similar between like houses?

0 Reply

Robin L.

OP

Alpharetta, GA · Member since 2016 · 23 posts · 7 votes

10y

Homes sell on average 30-45 days. The 4 homes that are the same floor plan all sold for between $450k and $465K, so very similar. I feel like because the neighborhood is cookie cutter and homes are selling for about thee same price in a relatively short amount of time FSBO should be easier than in other neighborhoods with more variables to consider.

1 Reply

Anthony G

Rental Property Investor · Indianapolis, IN · Member since 2012 · 91 posts · 41 votes

10y

It sounds like your situation is similar to my neighborhood. One thing to think about it time of year. Most houses in our neighborhood come on the market in the summer to allow families to move between the school year. This brings enough potential buyers through the neighborhood that will potentially see your house for sale (a plus). If I tried to sell in the off-season, I would have to do all of my own advertising so I'm not sure how successful I would be considering most people are using realtors or at least browsing realtor.com.

0 Reply

Rob Quinn

Jersey City, NJ · Member since 2013 · 20 posts · 7 votes

10y

I shoot RE listing photography and have worked for some FSBO's and seen many give in and bring on an agent after failing to sell in hot markets.

The biggest reasons I've seen homeowners switch to an agent is their discomfort showing the home to strangers by themselves and the hassle of juggling all the appointments.

Good luck with whichever direction you take!

0 Reply

Thomas S.

Member since 2016 · 13k+ posts · 12k+ votes

10y

Down side to FSBO is the buyers think they can get a discount because the seller is saving real estate fees, Agents tend to steer away from FSBO to simplify their job. Unless buyer is saving money on the purchase price there is no benefit therefor no incentive to convince their agent to show them a FSBO.

FSBO is a crap shoot.

2 Reply

Robin L.

OP

Alpharetta, GA · Member since 2016 · 23 posts · 7 votes

10y

There are companies that advertise that you can list on MLS for you for $100 or so, so I realize there would be some cost to advertise on MLS and print some fliers. I fell I would have to list on MLS to be competitive. We have excellent weather year round and the best time to sell a house here is actually December-April, historically homes go for more in those months.

I'm not at all squeamish about showing my home, but I am guessing that since most people here use an agent to buy I wouldn't really be showing the house anyway, just letting them in and leaving to let the buyers agent guide the tour.

I am afraid of people low-balling when they see FSBO, and while I think real estate agents should be ethical and show their clients houses that fit their needs regardless of FSBO status, I know not all real estate agents have this kind of moral compass ( another story for another time).

I would absolutely offer a commission to the buyers agent if there was one. I think if the house is priced competitively enough and buyers like it that should be enough for a buyer to tell their agent they want to see it, regardless of FSBO status, but that's just how I operate in looking for homes in the past. The buyer shouldn't care about FSBO status (or they even might think they can get it cheaper) the main reason a buyer would be avoiding FSBO would be if they had a greedy/lazy real estate agent.

I am pretty much assuming that I will be paying a commission of 3% to the buyers agent, so I am really only saving 3% if I got the FSBO, but on a $450k sale is still $13,500, not small potatoes.

0 Reply

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

10y

Selling the house isnt a problem...its ushering the house through the transaction process that escapes the laymen. There is a reason that 90% of attempted FSBO's end up selling through an agent after a failed attempt to do it themselves.

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2 Reply

Robin L.

OP

Alpharetta, GA · Member since 2016 · 23 posts · 7 votes

10y

Originally posted by @Russell Brazil:

Selling the house isnt a problem...its ushering the house through the transaction process that escapes the laymen. There is a reason that 90% of attempted FSBO's end up selling through an agent after a failed attempt to do it themselves.

Exactly. I can get it ready, take photos, list, adverse, show... but Im afraid of all the legal documents to get it to close!

0 Reply

Brandon L.

Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes

10y

@Robin L. a small percentage of FSBO actually sell. When they do sell its for significantly less than what an agent would be able to bring in.

Before I was licensed as an agent I purchased property as well, but that didn't mean that I was exposed to all the behind the scenes actions that were going on to make the sale happen.

I always see that the main reason that homeowners want to sell FSBO is to save money. This rarely happens. Mostly they lose a significant amount of cash, if it even sells at all.

Right around the corner from me is a property. The owners fired their agent because they said the agent didn't know how to sell and they could do it alone, when in reality the house was significantly overpriced. After firing the agent, they attempted to sell the house. It sat there for nearly 2 years. The house is about to be sold at a foreclosure auction next week. All because they simply didn't know how to price, and market the home.

Whatever your goals are, you will get there faster using a professional. Find a great agent that will work hard to get your place sold, so you can move faster to the next chapter of your life.

If you still decide to do it yourself make sure to invest some time in learning how to properly price a home, professional photos,staging, a marketing plan, and all the legal details(you don't want a lawsuit to come back and bite you after the sale)

Good luck feel free to reach out if you need anything :)

0 Reply

Avi Garg

Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes

10y

@Robin L. I had started a similar topic a few weeks back ... most of the comments you will hear from RE agents (surprisingly looking after other fellow agents)

Anyways I thought I would do it myself (FSBO) but when I thought about the things I had on my plate, I gave up and started interviewing RE agents. The first day I interviewed 2 agents, I got a call from a buyer (word of mouth), they came after 2 hours, and within 15 min they said they will buy my place at my asking price which was higher than any other condo sold ($500k+) in the complex. I didn't have to spend money on moving out (and de-cluttering), agent commission (which was a wash considering I would have sold it much higher with an agent) plus the buyer is letting us stay for an additional 3 months.

Now granted this doesn't happen often and we upgraded almost everything in our place (remember we didn't do a thing to show to the buyers). The buyer was also knowledgeable and preferred to avoid a buyer's agent.

So in the end, I ended up doing FSBO and hired an attorney to help me with the transaction.

1 Reply

John Arendsen

Homeowner · VISTA, CA · Member since 2015 · 726 posts · 340 votes

10y

You said it yourself @Robin L. "The Real Estate Profession exist for a reason". That pretty much says it all. The very measly commission you actually end up negotiating with a RE Professional is but a mere pittance to the overall process of a RE transaction.

I can tell you personally with 50 years of experience as a RE broker, General & Manufactured Home Contractor, Manufactured Home Dealer, Home Builder, Developer, Investor, Property Manager, Construction defect & Manufactured Home Expert Witness, Consultant and Troubleshooter. Use a trained and experienced PROFESSIONAL.

It's so much easier on the stress level and you will be so much more at peace. I learned decades ago as a General Contractor that you drop your tool belt but keep it in your truck and let your finger do the pointing. Delegate, delegate, delegate.

You are the GENERAL CONTRACTOR of your home.

1 Reply

Mike CumbieBusiness Member

REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes

10y

Hi @Robin L.,

I think in many areas we can all do just about everything related to a house. Could I

:Paint the bedrooms

:Put in new Windows on bottom floor

:Replace carpet

:Landscape the yard

:Put in new ceiling fans

:Seal the driveway

:Read publicly available information on legal cases related to a Real Estate issue

:Dig up a septic and get a good look at what is going on in there

Sure I could.

Could I do any of it as quick/efficiently/correctly as someone who does it for a living and has the experience of surviving by doing it?

Not even close.

I know there are many in the community and here on the site that believe an agent "Unlocks doors and cashes checks" but there is a whole lot more to it. It's like saying a carpet guy cuts it and lays it on the ground. Now if you have seen a good carpet guy you know it is as much of an art, and they do whole rooms in a fraction of the time and a whole lot less scraps than when I do it.

Selling your house isn't rocket science, but neither is septic inspection.

Good Luck in whatever you decide!

1 Reply

John Arendsen

Homeowner · VISTA, CA · Member since 2015 · 726 posts · 340 votes

10y

So @Avi Garg, you saved a sales commission and paid a legal retainer? How'd that turn out?

0 Reply

Lacey S.

Durham, NC · Member since 2015 · 48 posts · 18 votes

10y

As an another option, have you looked for a flat fee agency?

I don't think it's surprising that the people telling you that you need an agent all seem to be agents. Personally, I think agents are great when you are a buyer and you should definitely pay a fee to the buyers agent - they will make sure the buyer checks all the boxes on their way to closing.

In my area, the real estate contract is standard and you fill in the blanks. Most of the difficulty in managing a transaction is on the buyer's side - getting financing, having an inspection. If you are in a strong market that moves fast, and well-priced, you will have interest.

FSBO buyers will be looking for a deal but really you can offer them one and still come ahead when you will save $13,500 by only involving 1 agent.

1 Reply

Jorge Zea

Boca Raton, FL · Member since 2016 · 145 posts · 67 votes

10y

Dear @Robin L.: Just do a Flat Fee MLS listing.

Google and you will find good reputable local Brokers that do Flat Fee Listings for $99 to $500. The secret is getting the property onto the MLS and offering a good commission to buyer's agent. Whatever is normal in your area.

Make sure the company is a licensed Broker in your state and not a referral service. Licenses should be listed on the website. Call the company, email them. Make sure they a reputable and have reviews (real reviews ... and many).

Always use a real Estate Attorney in all transaction.

You are all set: show the property, deal with buyers, (it appears that you are experienced).

The system is proven, it works, it saves seller a lot of money.

2 Reply

Avi Garg

Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes

10y

@John Arendsen ... Since you asked .. I saved ~$30k in sales commission and paid ~$2k (fixed not hourly) in legal retainer .. I am in escrow and closing in 2 weeks..

Also as I mentioned .. I was interviewing agents when a buyer came along

2 Reply

Avi Garg

Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes

10y

@Mike Cumbie .. That is so generic ... So if we take your thinking and expand to other areas:

1. One should never bother cooking as professional cooks will be faster

2. One should never drive as professional drivers are better and faster

3. One should never type as secretaries are faster

and the list goes on

Again there is nothing against RE agents but please stop coming up with these insane arguments.

1 Reply

Robin L.

OP

Alpharetta, GA · Member since 2016 · 23 posts · 7 votes

10y

Yes, it does seem that most real estate agents will advise that I use a real estate agent, I expected that.

I am looking into a flat fee agency. It sounds like the best of both worlds. I can do a lot of work the sellers agent would do--staging, pictures, open houses, etc. but I have the real estate agent to help with the MLS listing, contract and legal stuff. The flat lit agent gets a cut, I save money, I still pay the buyers agent, sounds like a win-win-win (at first glance--still researching it).

Contracts in this area are fill in the blanks and pretty standard. I have bought and sold in this state and seen all the forms before, it seems like it would take less than 5 minutes for an agent to fill it out. As I said before, it's a cookie cutter neighborhood, brand new home, and I have a recent appraisal in hand, pretty easy transaction all things considered. So a flat fee listing might be the way to go.

0 Reply

John Arendsen

Homeowner · VISTA, CA · Member since 2015 · 726 posts · 340 votes

10y

Cool @Avi Garg

0 Reply

Nick BeveridgePro Member

Real Estate Broker · Coeur D Alene, ID · Member since 2015 · 213 posts · 84 votes

10y

Hi Robin,

This guy explains it great: https://youtu.be/RIowGqqEemM

0 Reply

Avi Garg

Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes

10y

@Robin L. You are right the purchase contract is straight forward , however I spent a lot of time on the disclosure docs ... this is where a local RE can be helpful if you are not comfortable ...

0 Reply

David Dachtera

Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes

10y

Originally posted by @Robin L.:

Originally posted by @Russell Brazil:

Selling the house isnt a problem...its ushering the house through the transaction process that escapes the laymen. There is a reason that 90% of attempted FSBO's end up selling through an agent after a failed attempt to do it themselves.

Exactly. I can get it ready, take photos, list, adverse, show... but Im afraid of all the legal documents to get it to close!

That's what your attorney is for.

That's one corner too many people try to cut, but no one EVER should! You're signing legal documents and contracts. Unless you're a JD, have some one there qualified to advise you.

0 Reply

Luka Milicevic

Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes

10y

This is entirely my personal opinion....

I think everyone that knows even a little about RE should sell their home FSBO vs listing with an agent. There are negatives to not listing-exposure to the MLS, some agents might not even show FSBO listings because they might not get paid.

If the house is $200k it costs $12k in agent commissions. That's 188k. Assuming an agent could get a higher price they would have to make up for the savings in commission.

I also use a 2 page contracts to buy RE vs the 10000 pages RE agents use.

I have come across many very good agents that are professional and have their clients' best interests at heart. However; I have come across more agents that are just really bad at their job. I have called countless sellers agents and they don't answer the phone and they don't call back. How poorly are they representing their clients'? What if I'm the buyer that wants to offer 20% over list price and they don't take my call?

Again, I think if you know even a little about RE you should go the FSBO route, or at the very least get your own license.

This is entirely my personal opinion and the route that I would go. Everything has pros/cons and it's up to you to decide what works best for YOU.

0 Reply

Jim Y.

Real Estate Investor · Tacoma, WA · Member since 2013 · 87 posts · 55 votes

10y

A good, knowledgeable RE agent is extremely valuable. Unfortunately, the only way to verify RE agent value is with a reference point, that is, compared against a worthless or incompetent RE agent. Furthermore, the only way to truly know the difference is to enter into a legally binding contract with them. Personal recommendation from people you trust is probably the best way to find your agent. If you are not absolutely confident in your agent, do not hire them. An incompetent agent will bring all the negatives of FSBO and more. But a great agent will make you see the value of their commission, and you will pay it happily. I have dealt with both.

0 Reply

Jenifer Levini

Attorney · Santa Cruz, CA · Member since 2015 · 345 posts · 358 votes

10y

Hi @Robin L.,

I'm a real estate attorney who helps people buy and sell. In fact, I'm the attorney who helped@Avi Garg with his transaction. On average the people I work with save $30,000-$60,000, depending on the sales price which ranges from about $450K-over $1.5M. These are all in California.

The way it works is that you will find a buyer. Once you and the buyer agree in principle on the price and other terms I will help you with the legal steps. Depending on how much help you need, my price varies from $2000, to a bit more for people who need more hand holding, explanations, and basically more of my time. For example, in one transaction, there were a lot of terms that needed to be negotiated such as who was going to pay closing costs, move-in date, financing terms, easements on the property... That took more of my time and the price was higher. In Avi's transaction, he and the buyers worked out all the terms before I was involved. I wrote a custom Sale & Purchase Agreement that laid out all the steps in the process, and terms agreed upon. Then, I supplied the required disclosure forms.

Its really not as hard as realtors make it out to be, if youve ever bought or sold a house before. If it's your first time in a real estate transaction, I recommend that you use a realtor. If you live in an area where you need a lot of people to pass through before finding a buyer, I recommend that you use a realtor. If you think you can find a buyer (Craigslist is a great place to list for free) and you have been involved in one or more real estate transactions before, then I can help you with the legal parts, and you'll save a lot of money.

If you want to talk about it more, message me here on BP.

Jen

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FSBO: Is it worth it?

FSBO: Is it worth it?

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