Real Estate Investor · Mobile, AL · Member since 2010 · 46 posts · 2 votes
I am about to sell a house that I am rehabbing in the next 3 weeks it is going to be listed for around $70k and its going to be marketed mostly to first time home buyers. It is a 1850 sqft 3/2 brick house.It is going to have new paint, carpet, updated bathrooms and kitchen, New HVAC. So it is under the price of what new brick homes are being sold for in my market. My question is how are you guys selling your rehab these days-- Market it yourself thru Newspaper ADs, Signs, website --- or through a Realtor with MLS exposure- I am trying to save some money due to the budget so I would rather not pay 6% for the realtor fee but at the same time it might be worth it?? Thanks
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
I've sold only five houses, but I have never gone the non-MLS route. I just can't see finding retail buyers any other way. MLS gives you massive exposure to people who are genuinely looking.
I would be cautious about using flat-fee listing services, however. Without writing a 1,000-word post, my feeling is that you may have a harder time going this route as opposed to using a full-service listing agent.
First, I think you're prone to get more low-ball offers, because buying agents will think you're not very sophisticated.
Second, I think some agents will not work hard to show a flat-fee listing because (1) they think this kind of seller is unreasonable and tough to work with (it's a sign you're trying to milk every dollar from the house), and (2) I think some full-service agents are a little concerned that their high-priced business model is in jeopardy, and they're not going to help anyone who uses a flat-fee service.
If you insist on going the flat-fee route, you might consider offering a 4% fee to the buyer's agent (or some other bonus). This will give them real incentive to show your property.
As for me, I think going forward I am going to use only full-service agents to list my properties.
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
15y
You should look for discounted or flat fee agents. The MLS will get you the most exposure. I've also sold two houses through yard signs, but that was during the rehab. After rehab they always go on the MLS.
Real Estate Investor · Mobile, AL · Member since 2010 · 46 posts · 2 votes
15y
Thanks man thats a Solid Idea - How much were you paying in commision on the discount agents and how much were you paying on the flat fee agents? Also what about going to the top agents with the most first time homebuyers
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
You're going to pay 3% to the buyer's agent whether you're FSBO or listed with an agent. If you're unwilling to pay the buyer's agent, you're not going to sell to anyone who's using an agent. Which is pretty much all OO buyers.
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
15y
Seems like there has been severl lawsuits in regard to the MLS. If you want MLS access - join your local board and you can list all of your properties there if that is what you really want. You will have to pay the same fees as the Realtors and some of that money will go to their Political Action Committee fund to pay lobbyists to get Realtor friendly bills introduced and passed. These bills may not be something you actually want, but you will contribute to the hush fund to get them enacted. Good Luck!
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Realtyman:
If you want MLS access - join your local board and you can list all of your properties there if that is what you really want. You will have to pay the same fees as the Realtors and some of that money will go to their Political Action Committee fund to pay lobbyists to get Realtor friendly bills introduced and passed.
Maybe it's location specific, but it's very different where I live. Only licensed agents and appraisers have access to the MLS, and you do not need to be a Realtor(TM) to be an agent or to have MLS access.
My wife is a licensed agent, is NOT a Realtor, and has access to the MLS...
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
I've sold only five houses, but I have never gone the non-MLS route. I just can't see finding retail buyers any other way. MLS gives you massive exposure to people who are genuinely looking.
I would be cautious about using flat-fee listing services, however. Without writing a 1,000-word post, my feeling is that you may have a harder time going this route as opposed to using a full-service listing agent.
First, I think you're prone to get more low-ball offers, because buying agents will think you're not very sophisticated.
Second, I think some agents will not work hard to show a flat-fee listing because (1) they think this kind of seller is unreasonable and tough to work with (it's a sign you're trying to milk every dollar from the house), and (2) I think some full-service agents are a little concerned that their high-priced business model is in jeopardy, and they're not going to help anyone who uses a flat-fee service.
If you insist on going the flat-fee route, you might consider offering a 4% fee to the buyer's agent (or some other bonus). This will give them real incentive to show your property.
As for me, I think going forward I am going to use only full-service agents to list my properties.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by DeuceSevenOff:
I would be cautious about using flat-fee listing services, however. Without writing a 1,000-word post, my feeling is that you may have a harder time going this route as opposed to using a full-service listing agent.
I've been holding off saying this for a while, as I'm not sure if this is just in our area (Atlanta metro) or not, but...
One of the largest flat-fee listing brokerages in the country is located here. They do a ridiculous amount of business, and the woman who runs the company is very business savvy. But, because they are very much an assembly line for listings, they do a horrible job of "customer service" (i.e., working with buyers and their agents).
Because of this, there are many buyers agents in this area who will refuse to show a house listed with this flat fee agency, and the sellers of these houses are losing potential buyers by listing with this flat-fee agency.
That said, flat fee in general doesn't necessarily seem like a bad idea...just make sure you do your research and know what you're getting (and not getting) from the agency...
Investor · Southlake, TX · Member since 2009 · 950 posts · 338 votes
15y
I don't have the experience in SFH's but on our commercial side, keeping the broker focused and happy is key to a quick sell. We will pay a bonus commission if we need to move something fast.
That being said, I think a good seller's agent would earn their fee.
Does anyone us Craigslist simultaneously with the MLS?
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
Originally posted by J Scott:
I've been holding off saying this for a while, as I'm not sure if this is just in our area (Atlanta metro) or not, but...
One of the largest flat-fee listing brokerages in the country is located here...
I know the flat-fee agency you're talking about, and I have had Realtors tell me point-blank that they will not show a house listed for sale by that company. Naturally, if a buyer asks to see it, they will show it, but they will not "find" such a house.
My experience was with the flat-rate service provided by a company that also offers full-service. (You could say they are in the "21st Century." :mrgreen: )
One such listing worked great because it was a duplex, and the investor-buyers were driving their own decisions. That property sold very quickly. On another house, however, I finally switched to a full-service agent because she begged me for the listing, and within 24 hours I had an offer that I eventually closed on. Coincidence? Seems unlikely...
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
15y
It is quite a shame that even though Realtors have a "Code of Ethics" such things happen. They are supposed to put the needs of their clients ahead of their own - but you see what happens. Their greed takes priority over the wants and needs of their clients they are supposed to be representing!
How many Buyers missed out on an opportunity just because the Realtor was not happy with the commission split??
Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
15y
I sell with a full service realtor who cuts the commission to 5% (he takes all the cut, still offer full commission to the buyer agent.) I have worked with him for several years and use him to buy all my properties. I'm pretty low maintenance and fairly consistent so he is ok with the lower commission.
Craigslist is a good way. You can also go to melissadata.com and have a list of renters sent to you that live in and around the zip code of the home you are selling. Then you can have post cards made up announcing an open house and find buyers that way. yes the list will cost money and the post cards too. But look at it this way you will also be able to build a buyers list because if you have several people come out that want to buy a hosue then you will have people that will be interested in the next house you flip as well.
Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
15y
Originally posted by J Scott:
Originally posted by Realtyman:
If you want MLS access - join your local board and you can list all of your properties there if that is what you really want. You will have to pay the same fees as the Realtors and some of that money will go to their Political Action Committee fund to pay lobbyists to get Realtor friendly bills introduced and passed.
Maybe it's location specific, but it's very different where I live. Only licensed agents and appraisers have access to the MLS, and you do not need to be a Realtor(TM) to be an agent or to have MLS access.
My wife is a licensed agent, is NOT a Realtor, and has access to the MLS...
Same here, while I AM a REALTOR, I get zero out of it and could have MLS access without it here in CO.
Investor · Key West, FL · Member since 2011 · 127 posts · 29 votes
15y
I would recommend using a real estate agent. MLS is like gold when it comes to selling your property quickly. I have tested both routes and have had infinite more success using a real estate agent on the MLS. I am a Realtor myself and have listed many properties for investors. I did list at a discounted rate because they were giving me multiple listings. If you have ongoing business to give an agent, I wouldn't be shy to ask them to list the properties for 1.5-2%.
Real Estate Investor · San Antonio, TX · Member since 2008 · 553 posts · 20 votes
15y
Joey,
I'd recommend looking for an investment friendly flat fee brokerage unless you don't mind the added liabilities and limited exposure. Someplace where they have been cultivating end buyers through credit repair/building.
Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
15y
Go to a discount broker and usually they will give you all of the exposure with MLS and different web sites for a few hundred bucks. You will still need to pay a co -broke of 3% if someone brings you a buyer, but thats not bad. I would pay that for a legit buyer all day long!
Also consider offering it on owner financing. You will get TONS of calls, and sometimes you can get someone that is bankable right away and does not even realize it. Even if you cant find a bankable buyer right away, owner financing is a great way to get your asking price. If you need more details, I would be happy to spend 15 minutes on the phone with you to give you the ups and downs.