I am looking to put my house on the market and finding it hard to pay a realtor 6%. I am looking to see if anyone on here ever use ForSaleByOwner to sell their home.
I guess my main questions revolved around the whole contract. As to do I purchase the contract from the ByOwner web site of does the buyers agent provide the contract?
Any assistance is greatly appreciated.
There are a few questions of which you need to have a good understanding:
1. Will ForSalebyOwner get you on the MLS or at least on Zillow and Trulia? MLS is preferable, but the other two will do. That is where the buyers are looking.
2. Is your housing market robust enough for you to sell your house by yourself? If houses are selling at a quick pace, you may be able to successfully market it by yourself.
3. Do you understand the sales contracts well enough to protect your own interests? If you haven't done a few transactions in the last few years, you could put yourself in a vulnerable position. You may want to have a lawyer review your paperwork.
4. You may need to find your own transaction paperwork if the buyer doesn't have an agent.
5. There are a lot of things the agent does after the contract is signed to make sure the contract gets to close. Do you want to keep track of the buyers loan transaction, along with the things that you need to have done if the buyer doesn't have an agent?
6. Could you negotiate with a listing agent for a lower rate - maybe get your home in the MLS, and help you with the followup to close with you handling the marketing.
Good luck if you decide to go it on your own. I just finished a transaction where the listing agent (not me) earned every penny of her 3.6%
For Sale By Owner, everytime I have sold my primary residence I have sold with a sign in the yard and "in the day" paper ads, now craigslist. Sold to Dr., Lawyer, Realtor, etc. with no problem. You can find contracts on the web or simply write it on a piece of paper and have both parties sign. Closing Atty. will handle all the legalities. To price, search a few for sale sites, get a ballpark price and set yours just under others. If you are willing and able to field calls and showings, it really can be fairly easy.
Just use the standard TREC contracts and disclosures. You can get them off the TREC website:
You'll need these three at a minimum:
TREC 20-11 - 1 to 4 Residential Contract
TREC OP-H - Seller's Disclosure
TREC OP-L - Lead Paint Disclosure
Fill them out, take them to the title company with the EMD and they will handle the rest. You might want to consider a flat rate MLS listing. They can be had locally for $250 - $500. If you post an ad on Craigslist you'll get a ton of tire kickers. PM me if you'd like some title company or flat fee listing references.
Sorry for the delay in responding, been very busy. Thank you for the responses.
I just signed up with forsalebyowner and enclosed which seems to be all the forms I will need. However I do not see the Residential Contract you mention. Do you know if I can only get it on the trec website? Thanks
Please keep us posted on this as I am considering doing this on a flip I'm about to start.
here is a link to a trec form I found via google.
One thing i use regularly is legal shield (google them). Pay $20 for one month and have them review the contract have them explain it to you. If you want to cancel afterwards- cancel. $20 well spent.
I wish you good luck and hope you don't mess up over trying to save a few pennies.
I would like to suggest you to go with your local MLS to market the property Because the majority of local agents use the local MLS and save up to 1/2 the commission! Try a local broker for your area that advertises Flat Fee Listings. Like I do in Scottsdale and Phoenix. Good Luck!
Originally posted by @Steve Layer:
I am looking to put my house on the market and finding it hard to pay a realtor 6%.
You will probably still end up having to pay 3% to the buyer's agent; as normally the 6% fee is split between the listing and buyers agents.
Others can correct me if I am wrong about this. The incentive to the buyer's agent to bring the buyer to you needs to be there.
A buyer's agent will let you know upfront their fee is 3% when they bring a buyer, and the buyer's agent is working for the buyer to make sure they are getting a good deal.
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