For Sale By Owner on a flip?

[Sean M.]

I live in NC (a transplant from CA) and have friends who have successfully sold several houses FSBO. They were able to purchase an MLS number and then handled the contract on their own. I have a flip that I'd like to list FSBO. My wife had her RE license in CA so we are not intimidated by the process. Is there any reason we should not FSBO on a flip? (We would still entertain offers from buyers agents and have the 3% built into the selling costs).

[Jonathan Bombaci]

It sounds like you have enough knowledge and experience to handle the process on your own. I know many Real Estate agents that have problems with FSBO's but in my experience if the seller knows what they're doing it can be one of the easier transactions.

One mistake is see FSBO's doing is not getting it listed on MLS. I would recommend finding a company that just does MLS listing for you for a small nominal fee. Or if you know any friends that are part-time or newbie agents then give them a call and ask them if they'd do it. They end up getting the credit for the transaction on MLS and if you do all the work it shouldn't cost them anything or take up more than 30 mins of their time.

You want to get it on MLS so you get the maximum exposure for your listing and so buyers agents that see its a "FSBO" can also see on the same page that you're offering the 3% commission for a successful transaction. Most of the buyers agents fears with FSBO is that they're going to get shortchanged their commission or that they'll have to have that awkward conversation with their buyers that their services aren't actually "FREE" and that their clients are going to need to pay them at closing... depending on their beginning sales pitch / buyer consultation that can be a very uncomfortable conversation.

The only downside I see in listing it on your own, with the assumption that you have the experience and knowledge to pull it off without shooting yourself in the foot, as many inexperienced people do by listing it FSBO, is that you need to OVER DISCLOSE Everything. Having lived in the house yourself and being your own listing agent you leave yourself open to some liability should they find a defect in the house after closing, even if you didn't know the defect was there.

That being said I am a licensed real estate agent in MA and listed my personal home myself. 

Best,

Jon