FSBO: Is it worth it?

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FSBO: Is it worth it?

Robin L.
Alpharetta, GA · Member since 2016 · 23 posts · 7 votes

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?

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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.

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  • Jarvis Broughton
    Real Estate Agent · Atlanta, GA · Member since 2016 · 6 posts · 1 vote
    10y

    Statistics show that 94% of FSBO end up selling their house through a real estate agent. If you are part of that 6% that is awesome and I commend anyone who can sell their own home. But as a professional in the business that 3% is well worth it to make sure everything goes smoothly from contract to close for your investment. There is a reason we are licensed professionals who continuously learns about the market place and our craft year round. I think the right real estate agent will add value to any real estate transaction if they are punctual, professional, responsive and willing to go that extra mile to give their client the best customer service experience possible. I always say this to people, if you could save *blank amount of money* to build your own iPhone but you only have a 6% chance that the phone will ever power on nonethelss make phone calls! Would you take that chance or would you just pay Apple to provide the type of service you expect of them?? And here is the catch, you can fire a real estate agent at any time with no cancellation fee, so what is the risk??? Hope that helps and good luck listing your home when/if you decide.

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  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    10y

    I have done a couple. For the LA area a superior idea is list on the mls. You can use a mls listing service for $75 to 150 and basically you act in essence as the listing agent and only paying buyers agents commissions. The listing service will just make you use their escrow company. I did this too and it is better than fsbo imo. To be clear you still have a listing agent( the mls listing service) but they make virtually zero commission. You set the buyers commission, do the showings , review after the fact offers is about your level of involvement. It works great in certain locations and saves you tons! Good luck!

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  • Amy A.
    Portland, ME · Member since 2012 · 616 posts · 550 votes
    10y

    If you are confident on the price, try selling it for a month or so yourself (set a deadline) and see how it goes.  The quality of real estate agents varies greatly, so it's hard to know if you'll get your money's worth or not.

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  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    10y

    The major advantage to a Realtor is the MLS. If you have never done a real estate transaction you also would want someone involved that has which is most likely a Realtor.

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  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    10y

    @Avi Garg,

    I would agree with your argument if I ate 3 times in my life, drove 3 times in my life or typed 3 times in my life. But then again I have survived by doing the things you mentioned. Could an investor who has purchases 5 houses a year buy and sell on their own? of course. Should they? If that is an item they want to trade time for money then yes. If painting a tenants stairwell is an area they want to trade time for money then they should do that too.

    I in no way meant she shouldn't do it on her own, heck she is in California. I am not licensed there and for that matter do not know a single agent in the area. It is zero skin off my nose either way. My point was there are certain times when the right person with the right tools makes things easier and smoother PERIOD. I never even recommended she use an agent. I never recommended she did not do her own septic inspection or paint her own walls either. Words have meanings and if you actually read my post you will never see a recommendation at all. I even specifically wished her luck in whatever she decided. 

    A 2 page contract is great (Will you buy house? check box, Yes/No)....... until there is a problem or misunderstanding. I know in your experience you casually mentioned that you were selling a house and 15 minutes later people came running at you throwing you more money than you asked for.  Then it was smooth sailing all the way to the closing table. All of the benchmarks were hit by both sides, there were no times to go back and renegotiate, everyone felt it was all fair and they were not trying to nickle and dime at every turn waiting for the right opportunity to shave a bit more off or get a bit more. I love those deals, they are great. Also not the norm in my experience, but I don't live in California either.

    My point is pick the areas you want to trade time for money. If you can make more money working why someone drives you around and cooks your food for you then do that.

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  • Kiersten Vance
    Real Estate Agent · Redlands, CA · Member since 2016 · 253 posts · 115 votes
    10y
    Hi Robyn. I asked myself that same question until I became an agent. There is a lot of legal paperwork and proper disclosures and it would benefit you to have an agent on your side helping you get through that. However, if you are willing to clean, stage, print flyers to put in box on sign, and hold open houses as well as show clients when needed, a flat fee listing might be a good fit for you! I would also suggest offering 2.5% commission to buyers agent as your house is over 400k. PM if you have any questions or want to talk more!
    0Reply
  • Kiersten Vance
    Real Estate Agent · Redlands, CA · Member since 2016 · 253 posts · 115 votes
    10y
    Sorry Robin! My phone autocorrected your name :)
    0Reply
  • Jenifer Levini
    Attorney · Santa Cruz, CA · Member since 2015 · 345 posts · 358 votes
    10y

    Wow @Matt R., That's interesting! I didnt know that there are MLS Listing services that allow one to list their property without the commitment to a listing/selling agent. If a buyer sees this listing on the MLS can they tell if it is a FSBO?

    Just to recap, if  the house was listed for $500,000 and a realtor was used the cost would be 5% =$25,000. If a lawyer was used and the listing service (no agents) the cost would be $2150. A savings of $22,850.

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  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    10y
    Originally posted by @Jenifer Levini:

    Wow @Matt R., That's interesting! I didnt know that there are MLS Listing services that allow one to list their property without the commitment to a listing/selling agent. If a buyer sees this listing on the MLS can they tell if it is a FSBO?

    Just to recap, if  the house was listed for $500,000 and a realtor was used the cost would be 5% =$25,000. If a lawyer was used and the listing service (no agents) the cost would be $2150. A savings of $22,850.

      To be clear you still have a listing agent/broker assigned ( the mls listing service) but they make virtually zero commission. It is not a fsbo. 

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