Investor · San Diego, CA · Member since 2016 · 9 posts · 0 votes
Hi Everyone!
Background:
- Investor for 3 years (multifamily and sfr flips)
- unlicensed (nor do have any desire)
- San Diego, CA Market
Quick question for you, have you ever FSBO? If so, how’d it go? Did you offer the buyers agent a commision? Would you do it again? What we’re the biggest challenges?
If you haven’t FSBO - why not? What makes agents so valueable that it’s worth 20-30k of your equity? (500K AVG PRICE)
THANK YOU FOR ANY RESPONSE (FROM AGENTS/BROKERS TOO)! (ALSO, I VALUE AGENTS VERY MUCH AND DONT MEAN TO OFFEND, JUST CURIOUS
THANK YOU!
I sold a house a couple of months ago without an agent for retail and no concessions. Appraisal came in $2,000 higher than the sales price. Agents usually earn their commissions but I've sold most of my properties without one. Most buyers are under the impression they need an agent and others discount the purchase price when an agent isn't involved.
"Curious - if you sold your house FSBO and DIDN'T offer to pay buyer commissions, (buyer would need to add the agnet fee onto my PP) what do you think the result would be? Do you think buyers would really care? Do you think agents would steer their buyers away from the home?"
I never steer a client away from a house but they do steer themselves. First I call the FSBO and ask if they are paying a buyer agent, if yes we sign a quick form for my individual seller (if they buy). If not I let them know I will ask my seller if they will cover the commission and call them back, then the conversation goes like this.
"Hey Joe, I found a FSBO that matches your criteria, I called the owner, they aren't paying a buyers commission so you would be responsible for that when it closes. Did you want me to set it up to look at with the others on Tuesday night?"
"Ya know, lets not worry about that one."
I have no problem with FSBO properties, there is less competition on them and I am dealing with someone who does not know the contracts inside and out.