Hey y'all,
I'm wrapping up my first fix and flip and am marketing it FSBO. I've got my RE license but am unaffiliated with a firm. Is there a stigma re: FSBO? Do people view FSBO homes in a different light than a home on the MLS/can I expect the house to go for market value by not listing with an agent?
The house is located in a very high-demand neighborhood and has great visibility.
This is a completely new experience for me so please excuse my naivete, just want to be prepared and identify any potential blind spots I'm not thinking of.
Thank you in advance for your feedback!
FSBO also means the buyers agent will have to do more work as you don't have access to or the support of an office and the "usual" forms that they will want to use to ensure they stay in compliance with the local MLS and Realtor assoc.
we had this experience when a buyer brought their commercial RE agent as their rep and was basically clueless of the usual routines, forms, and bench marks.
Were you aware that Staples sells acceptable forms for selling a house? It's true. The MLS forms are designed to protect the agent and the broker, not the seller for the most part. Our Purchase and Sale Agreement is two pages.
A title and escrow company will do all of the paperwork you need. The value of an agent is negotiating price, terms, concessions, having access to contractors, inspectors and such. And to be a go between buyer & seller, because some seller's get emotional about their house. Which they should grow up and realize they decided to sell, no one is making them sell. They can say "No" to any offer.
An offer is just that, An Offer. It isn't a demand or requirement. Just say, "I'd like to sell my house, I can't do it for your price, but let's see if we can come to a meeting of the minds on price and terms, (the legal requirement) and if we can't, we part as friends.
Sorry, being an agent isn't rocket science. It's sales. If the Buyer's agent is making $12,000 on a deal, they are happy to provide the assistance of getting the deal closed. That is precisely what they are being paid to do.
Hey y'all,
I'm wrapping up my first fix and flip and am marketing it FSBO. I've got my RE license but am unaffiliated with a firm. Is there a stigma re: FSBO? Do people view FSBO homes in a different light than a home on the MLS/can I expect the house to go for market value by not listing with an agent?
The house is located in a very high-demand neighborhood and has great visibility.
This is a completely new experience for me so please excuse my naivete, just want to be prepared and identify any potential blind spots I'm not thinking of.
Thank you in advance for your feedback!
There is no stigma but honestly if I was selling a high end home I would use an agent and let them market it out to their buyers and other offices. If it was entry level home there would be an abundance of buyers but higher end homes I would recommend an agent. Just my 2 cents.
Hey y'all,
I'm wrapping up my first fix and flip and am marketing it FSBO. I've got my RE license but am unaffiliated with a firm. Is there a stigma re: FSBO? Do people view FSBO homes in a different light than a home on the MLS/can I expect the house to go for market value by not listing with an agent?
The house is located in a very high-demand neighborhood and has great visibility.
This is a completely new experience for me so please excuse my naivete, just want to be prepared and identify any potential blind spots I'm not thinking of.
Thank you in advance for your feedback!
There is no stigma but honestly if I was selling a high end home I would use an agent and let them market it out to their buyers and other offices. If it was entry level home there would be an abundance of buyers but higher end homes I would recommend an agent. Just my 2 cents.
Hey Chris, thanks for your response! I wouldn't label it as a high-end home, it's just in a desirable/highly trafficked neighborhood and on a prominent street. I've decided to market it FSBO for the first week or two. Worth a shot. If nothing results I'll either list with a broker or affiliate with my friend's firm and list on the MLS myself. I know I'm likely coming off as a cheapo but I'm trying to do everything myself that I can the first time around so I can learn.
I've also decided to attach a "buyer agent commission" sign to the FSBO sign that I had made.
Hey y'all,
I'm wrapping up my first fix and flip and am marketing it FSBO. I've got my RE license but am unaffiliated with a firm. Is there a stigma re: FSBO? Do people view FSBO homes in a different light than a home on the MLS/can I expect the house to go for market value by not listing with an agent?
The house is located in a very high-demand neighborhood and has great visibility.
This is a completely new experience for me so please excuse my naivete, just want to be prepared and identify any potential blind spots I'm not thinking of.
Thank you in advance for your feedback!
There is no stigma but honestly if I was selling a high end home I would use an agent and let them market it out to their buyers and other offices. If it was entry level home there would be an abundance of buyers but higher end homes I would recommend an agent. Just my 2 cents.
Posted a recap in the thread!
Going off of @Chris Seveney point about marketing it, your FSBO won't hit the MLS. If a Realtor or their clients just have MLS searches set up, and aren't looking through Zillow regularly, then they'll miss/never see it. Just that could cost you 2%-2.5% that you'd pay a Realtor. Also if its that high demand, then find an agent that'll list it at a fixed cost + you pay them itemized expenses (photos, measurements, sign, etc). You'd do this anyway to put your home in the best possible position to sell (not using your iPhone for pics) so might as well add a small, incremental cost to get it on the MLS.
Final point - disclosures requirements of agents vs sellers are very different in NC. Though the general public may not have a stigma about FSBO, agents may because we see both sides (listing agent v seller agent) and the disclosure liability associated with them.
Going off of @Chris Seveney point about marketing it, your FSBO won't hit the MLS. If a Realtor or their clients just have MLS searches set up, and aren't looking through Zillow regularly, then they'll miss/never see it. Just that could cost you 2%-2.5% that you'd pay a Realtor. Also if its that high demand, then find an agent that'll list it at a fixed cost + you pay them itemized expenses (photos, measurements, sign, etc). You'd do this anyway to put your home in the best possible position to sell (not using your iPhone for pics) so might as well add a small, incremental cost to get it on the MLS.
Final point - disclosures requirements of agents vs sellers are very different in NC. Though the general public may not have a stigma about FSBO, agents may because we see both sides (listing agent v seller agent) and the disclosure liability associated with them.
Thanks Pat! Replied w/ a recap in the thread!
FSBO also means the buyers agent will have to do more work as you don't have access to or the support of an office and the "usual" forms that they will want to use to ensure they stay in compliance with the local MLS and Realtor assoc.
we had this experience when a buyer brought their commercial RE agent as their rep and was basically clueless of the usual routines, forms, and bench marks.
FSBO also means the buyers agent will have to do more work as you don't have access to or the support of an office and the "usual" forms that they will want to use to ensure they stay in compliance with the local MLS and Realtor assoc.
we had this experience when a buyer brought their commercial RE agent as their rep and was basically clueless of the usual routines, forms, and bench marks.
Were you aware that Staples sells acceptable forms for selling a house? It's true. The MLS forms are designed to protect the agent and the broker, not the seller for the most part. Our Purchase and Sale Agreement is two pages.
A title and escrow company will do all of the paperwork you need. The value of an agent is negotiating price, terms, concessions, having access to contractors, inspectors and such. And to be a go between buyer & seller, because some seller's get emotional about their house. Which they should grow up and realize they decided to sell, no one is making them sell. They can say "No" to any offer.
An offer is just that, An Offer. It isn't a demand or requirement. Just say, "I'd like to sell my house, I can't do it for your price, but let's see if we can come to a meeting of the minds on price and terms, (the legal requirement) and if we can't, we part as friends.
Sorry, being an agent isn't rocket science. It's sales. If the Buyer's agent is making $12,000 on a deal, they are happy to provide the assistance of getting the deal closed. That is precisely what they are being paid to do.
FSBO also means the buyers agent will have to do more work as you don't have access to or the support of an office and the "usual" forms that they will want to use to ensure they stay in compliance with the local MLS and Realtor assoc.
we had this experience when a buyer brought their commercial RE agent as their rep and was basically clueless of the usual routines, forms, and bench marks.
Thank you Kevin! Please check my thread reply if you'd like
FSBO's can be a huge pain sometimes. The seller may not know what they are doing. Or, think they know it all because they've sold a few homes on their own (vs an experienced agent that has sold hundreds of homes). They are not licensed and there is no oversight. So, on the other end you have to be very cautious.
When I help buyers purchase FSBO's I often have to do all the work for the seller too, even though I'm not getting paid to represent them. Also a pain.
FSBO sellers may not have the pricing tools that agents do, or the expertise to know how to properly price the home. So that's another hurdle to overcome (they are typically overpriced).
The vast majority of real estate lawsuits come from unrepresented parties. I don't know the exact %, but I believe it was around 75% of them.
Ultimately, I think hiring an experienced listing agent will net you the best price and terms, and will more than make up for the 2.5-3% you would pay them.
Just because you can run doesn't mean you are joining the US Olympic running team any time soon. And just because you can sell a house without professional assistance doesn't mean you should. You would not represent yourself in court, you would not operate on your self, you would not act as your own dentist, etc - there are reasons that we rely on professionals when dealing with important matters, and selling a home is no exception.
FSBO's can be a huge pain sometimes. The seller may not know what they are doing. Or, think they know it all because they've sold a few homes on their own (vs an experienced agent that has sold hundreds of homes). They are not licensed and there is no oversight. So, on the other end you have to be very cautious.
When I help buyers purchase FSBO's I often have to do all the work for the seller too, even though I'm not getting paid to represent them. Also a pain.
FSBO sellers may not have the pricing tools that agents do, or the expertise to know how to properly price the home. So that's another hurdle to overcome (they are typically overpriced).
The vast majority of real estate lawsuits come from unrepresented parties. I don't know the exact %, but I believe it was around 75% of them.
Ultimately, I think hiring an experienced listing agent will net you the best price and terms, and will more than make up for the 2.5-3% you would pay them.
Just because you can run doesn't mean you are joining the US Olympic running team any time soon. And just because you can sell a house without professional assistance doesn't mean you should. You would not represent yourself in court, you would not operate on your self, you would not act as your own dentist, etc - there are reasons that we rely on professionals when dealing with important matters, and selling a home is no exception.
You seem to be saying "
Just because (you can run) you are an agent doesn't mean you are (joining the US Olympic running team) going to be competent any time soon.
You have what is called "selective" reasoning.
FSBO's can be a huge pain sometimes. The seller may not know what they are doing. Or, think they know it all because they've sold a few homes on their own (vs an experienced agent that has sold hundreds of homes). They are not licensed and there is no oversight. So, on the other end you have to be very cautious.
When I help buyers purchase FSBO's I often have to do all the work for the seller too, even though I'm not getting paid to represent them. Also a pain.
FSBO sellers may not have the pricing tools that agents do, or the expertise to know how to properly price the home. So that's another hurdle to overcome (they are typically overpriced).
The vast majority of real estate lawsuits come from unrepresented parties. I don't know the exact %, but I believe it was around 75% of them.
Ultimately, I think hiring an experienced listing agent will net you the best price and terms, and will more than make up for the 2.5-3% you would pay them.
Just because you can run doesn't mean you are joining the US Olympic running team any time soon. And just because you can sell a house without professional assistance doesn't mean you should. You would not represent yourself in court, you would not operate on your self, you would not act as your own dentist, etc - there are reasons that we rely on professionals when dealing with important matters, and selling a home is no exception.
You seem to be saying "
Just because (you can run) you are an agent doesn't mean you are (joining the US Olympic running team) going to be competent any time soon.
You have what is called "selective" reasoning.
FSBO's can be a huge pain sometimes. The seller may not know what they are doing. Or, think they know it all because they've sold a few homes on their own (vs an experienced agent that has sold hundreds of homes). They are not licensed and there is no oversight. So, on the other end you have to be very cautious.
When I help buyers purchase FSBO's I often have to do all the work for the seller too, even though I'm not getting paid to represent them. Also a pain.
FSBO sellers may not have the pricing tools that agents do, or the expertise to know how to properly price the home. So that's another hurdle to overcome (they are typically overpriced).
The vast majority of real estate lawsuits come from unrepresented parties. I don't know the exact %, but I believe it was around 75% of them.
Ultimately, I think hiring an experienced listing agent will net you the best price and terms, and will more than make up for the 2.5-3% you would pay them.
Just because you can run doesn't mean you are joining the US Olympic running team any time soon. And just because you can sell a house without professional assistance doesn't mean you should. You would not represent yourself in court, you would not operate on your self, you would not act as your own dentist, etc - there are reasons that we rely on professionals when dealing with important matters, and selling a home is no exception.
You seem to be saying "
Just because (you can run) you are an agent doesn't mean you are (joining the US Olympic running team) going to be competent any time soon.
You have what is called "selective" reasoning.
Hey Andrew, congrats on finishing your first flip!
FSBO can work, especially in a hot area, but some buyers (and agents) might view it cautiously. If you offer a buyer agent commission, that can help.
That said, if you find a good agent, it might save you time and hassle — and still get you top dollar. Good luck!
Hey Andrew, congrats on finishing your first flip!
FSBO can work, especially in a hot area, but some buyers (and agents) might view it cautiously. If you offer a buyer agent commission, that can help.
That said, if you find a good agent, it might save you time and hassle — and still get you top dollar. Good luck!
Thank you Deborah! Check my thread reply if you'd like!
FSBO works much better during a hot market. You can maybe give it a week or two and see how it turns out but then have your listing plan ready as a backup.
FSBO works much better during a hot market. You can maybe give it a week or two and see how it turns out but then have your listing plan ready as a backup.
Please check my thread reply!
Hey y'all,
I'm wrapping up my first fix and flip and am marketing it FSBO. I've got my RE license but am unaffiliated with a firm. Is there a stigma re: FSBO? Do people view FSBO homes in a different light than a home on the MLS/can I expect the house to go for market value by not listing with an agent?
The house is located in a very high-demand neighborhood and has great visibility.
This is a completely new experience for me so please excuse my naivete, just want to be prepared and identify any potential blind spots I'm not thinking of.
Thank you in advance for your feedback!
.
Since I don't know your numbers I'll use a sample
On a $500,000 property at 6% realtor fees, if you list the normal way using realtors you are paying $30,000 if they can get your house sold. So, if your loan is also $500,000 (which it would actually be less, but I like to keep things simple because I'm a simple man) then your monthly carrying costs at 7% are $3,300 for Principal & interest, and the taxes and insurance and utilities, so I'm going to make it easy and say $4,000 a month.
This will vary by county but you get the idea. $30,000 divided by $4000 = 7.5 so you have seven and a half months to break even. If most houses in your area take 3 months to sell, add a month for a buffer, that is what you should expect about 4 months. So, you are ahead 3.5 months ($14,000) if things go as stated. These are made up numbers and you need to run the analysis using actual numbers.
If the difference worth taking on the responsibility?
Your comment "The house is located in a very high-demand neighborhood" doesn't provide enough information to detail things out, but you get the general idea. However, if you are in a "very high-demand neighborhood" with good visibility and can't get it sold, get some sales training or learn to code software and do that instead.
If you plan on being an agent, I definitely would go the FSBO route. It will be great experience for your future.
Hey y'all,
I'm wrapping up my first fix and flip and am marketing it FSBO. I've got my RE license but am unaffiliated with a firm. Is there a stigma re: FSBO? Do people view FSBO homes in a different light than a home on the MLS/can I expect the house to go for market value by not listing with an agent?
The house is located in a very high-demand neighborhood and has great visibility.
This is a completely new experience for me so please excuse my naivete, just want to be prepared and identify any potential blind spots I'm not thinking of.
Thank you in advance for your feedback!
.
Since I don't know your numbers I'll use a sample
On a $500,000 property at 6% realtor fees, if you list the normal way using realtors you are paying $30,000 if they can get your house sold. So, if your loan is also $500,000 (which it would actually be less, but I like to keep things simple because I'm a simple man) then your monthly carrying costs at 7% are $3,300 for Principal & interest, and the taxes and insurance and utilities, so I'm going to make it easy and say $4,000 a month.
This will vary by county but you get the idea. $30,000 divided by $4000 = 7.5 so you have seven and a half months to break even. If most houses in your area take 3 months to sell, add a month for a buffer, that is what you should expect about 4 months. So, you are ahead 3.5 months ($14,000) if things go as stated. These are made up numbers and you need to run the analysis using actual numbers.
If the difference worth taking on the responsibility?
Your comment "The house is located in a very high-demand neighborhood" doesn't provide enough information to detail things out, but you get the general idea. However, if you are in a "very high-demand neighborhood" with good visibility and can't get it sold, get some sales training or learn to code software and do that instead.
If you plan on being an agent, I definitely would go the FSBO route. It will be great experience for your future.
Please check my thread recap, thanks for all the advice!
@Andrew Key Do a flat fee MLS listing, which costs $100-$300, and you get the benefit of being on the MLS + syndication to the major real estate websites without having to pay a listing agent commission.
@Andrew Key Do a flat fee MLS listing, which costs $100-$300, and you get the benefit of being on the MLS + syndication to the major real estate websites without having to pay a listing agent commission.
Great advice sir! Check my recap in the thread!
@Andrew Key
I have sold a few properties FSBO back in 2016-2018. Is it possible to do? Yes. But as you mention, 99% of buyers will be looking at the MLS to find houses. And, I thought I heard stories about Zillow effectively only taking listing from the MLS anymore.
While the process is possible and honestly not too complicated, the MLS does provide the primary marketing channel for your property. There is a service called HomeShake that is helping disrupt the whole agent model, which may be available in your market.
If you are trying to save on fees, like others mentioned, I would go with a flat fee/limited service listing agent. These can get you on MLS to get the most eyes on the listing.
Beyond the marketing, I use limited service agents because I want a go-between for the buyer and me. One of my FSBOs was a flip, and the buyer having my phone number was a nightmare. They called asking about paint colors, about scopes of work (years after closing), contractor referrals, etc. The flat fee I pay my listing agent is well worth not letting the buyer have my phone number again.
@Andrew Key
I have sold a few properties FSBO back in 2016-2018. Is it possible to do? Yes. But as you mention, 99% of buyers will be looking at the MLS to find houses. And, I thought I heard stories about Zillow effectively only taking listing from the MLS anymore.
While the process is possible and honestly not too complicated, the MLS does provide the primary marketing channel for your property. There is a service called HomeShake that is helping disrupt the whole agent model, which may be available in your market.
If you are trying to save on fees, like others mentioned, I would go with a flat fee/limited service listing agent. These can get you on MLS to get the most eyes on the listing.
Beyond the marketing, I use limited service agents because I want a go-between for the buyer and me. One of my FSBOs was a flip, and the buyer having my phone number was a nightmare. They called asking about paint colors, about scopes of work (years after closing), contractor referrals, etc. The flat fee I pay my listing agent is well worth not letting the buyer have my phone number again.
Posted a recap in the thread! (not sure if you're notified of this)
Curious, how did it end up going for you? Did you sell it FSBO?
Curious, how did it end up going for you? Did you sell it FSBO?
Please check thread reply!
Hey everyone,
I wanted to thank you all for your responses and advice!
Also wanted to provide an update...
I ended up selling the house FSBO via a flat fee MLS site (Beycome). It was a great experience overall.
I went with the basic Beycome package that was $95. Essentially just allowed me to post on the MLS. The first day had no bites; however, I had two showings via RE agents on day two. I also personally showed the house to a few neighbors who had a friend in Charlotte that was very interested.
I was asking $389,900. The first (and only) offer was initially for $392,000 cash. I relayed to the agent that I had a gentleman driving from Charlotte to tour that afternoon, which I had promised him I'd do the day before. The agent called me back 30 minutes later and offered $400,000 cash, contingent on acceptance by 2pm (essentially knocking out the prospective buyer from CLT). DD of 4 weeks closing @ 5 weeks. I was able to negotiate down to DD of 3 weeks closing at 4. I was excited by the offer and was happy to take the bird in the hand.
Ended up with a ~$96,500 profit for an ROI of 32% over 6 months.
This is much better than I had ever anticipated and am happy to see hard work paid off!
Again, thank you all for your responses/advice. Please let me know if you have any questions!
Andrew
Hey everyone,
I wanted to thank you all for your responses and advice!
Also wanted to provide an update...
I ended up selling the house FSBO via a flat fee MLS site (Beycome). It was a great experience overall.
I went with the basic Beycome package that was $95. Essentially just allowed me to post on the MLS. The first day had no bites; however, I had two showings via RE agents on day two. I also personally showed the house to a few neighbors who had a friend in Charlotte that was very interested.
I was asking $389,900. The first (and only) offer was initially for $392,000 cash. I relayed to the agent that I had a gentleman driving from Charlotte to tour that afternoon, which I had promised him I'd do the day before. The agent called me back 30 minutes later and offered $400,000 cash, contingent on acceptance by 2pm (essentially knocking out the prospective buyer from CLT). DD of 4 weeks closing @ 5 weeks. I was able to negotiate down to DD of 3 weeks closing at 4. I was excited by the offer and was happy to take the bird in the hand.
Ended up with a ~$96,500 profit for an ROI of 32% over 6 months.
This is much better than I had ever anticipated and am happy to see hard work paid off!
Again, thank you all for your responses/advice. Please let me know if you have any questions!
Andrew
Great results, Andrew! Love to see the success!
Congrats on your first flip! FSBO in a hot area can still get strong traction. If you ever need help spreading the word or tapping into local buyers/investors, I'd be glad to connect you with a few. Wishing you a solid exit!