FSBO or not ?

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flmgrip_IHB

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Hey all,



I'm thinking about selling my 1 1/2 old home. I'm not distressed, under water, short sale or forclosure. Plain old regular sale. My personal circumstances have changed and I'd rather not live in a 3bedroom by myself.



So what are the downsides of doing FSBO? What are the chances that the realtor I would hire for about $18k would actually sell my home?



Isn't a good listing on MLS (and redfin etc) the only thing I need. Most buyers seem to go online, look for homes they like and then tell THEIR realtor what they would like to see.



Why do I need a realtor? Have people here sold a home sucessfully thru forsalebyowner.com ?



I am somewhat firm on my price, if I wouldn't get any offers at or around that price I would probably stay put. I love the house and neighbourhood. The home is just too big for just me.



Thanks for your input
 
if you are firm on price the first thing i would do is figure out if the price you want is reasonable. if it is not then i wouldnt waste anyone's time.



the bottom line is Realtor or not if you home is not priced to sell it wont.
 
I think it is fairly easy, but I would read a book or two on it.









We went to the escrow company with a signed purchase agreement and they handled most everything.







I do not know if you can get on the MLS without an agent though. The MLS is owned by the NAR. It is private property and theirs to do with what they please. I have seen FSBOs on Redfin though. I think the biggest problem with FSBOs is that it seems like they are not usually realistic about the price.
 
[quote author="awgee" date=1242456812]I think it is fairly easy, but I would read a book or two on it.









We went to the escrow company with a signed purchase agreement and they handled most everything.







I do not know if you can get on the MLS without an agent though. The MLS is owned by the NAR. It is private property and theirs to do with what they please. I have seen FSBOs on Redfin though. I think the biggest problem with FSBOs is that it seems like they are not usually realistic about the price.</blockquote>


all true and good stuff... however 99% of all realtors are going to avoid you like the plague because there is no incentive for them show buyers your home.



there is currently no shortage of homes for sale so unless you are priced significantly below the market you will get lost in the shuffle.



i am of the opinion to hire a professional to help me with things i am no 100% familiar with. sure i can read a few books about investing and tax saving strategies and i am sure i would be ok, but i would rather hire a trusted professional who is in the business of investment planning and tax saving strategies.
 
[quote author="sugarspunZ" date=1242457399][quote author="awgee" date=1242456812]I think it is fairly easy, but I would read a book or two on it.









We went to the escrow company with a signed purchase agreement and they handled most everything.







I do not know if you can get on the MLS without an agent though. The MLS is owned by the NAR. It is private property and theirs to do with what they please. I have seen FSBOs on Redfin though. I think the biggest problem with FSBOs is that it seems like they are not usually realistic about the price.</blockquote>


all true and good stuff... however 99% of all realtors are going to avoid you like the plague because there is no incentive for them show buyers your home. </blockquote>


99% of all realtors will avoid you like the plague? That is the best reason to FSBO I have heard, and I am not joking.







[quote author="sugarspunZ" date=1242457399]





there is currently no shortage of homes for sale so unless you are priced significantly below the market you will get lost in the shuffle.



i am of the opinion to hire a professional to help me with things i am no 100% familiar with. sure i can read a few books about investing and tax saving strategies and i am sure i would be ok, but i would rather hire a trusted professional who is in the business of investment planning and tax saving strategies.</blockquote>


A trusted professional, yes. But I can count the numbers of realtors who are professionals on one hand. And even fewer that can be trusted.

And my experience is that the complicated work is done by the escrow company, not the agents.
 
[quote author="awgee" date=1242458307][quote author="sugarspunZ" date=1242457399][quote author="awgee" date=1242456812]I think it is fairly easy, but I would read a book or two on it.









We went to the escrow company with a signed purchase agreement and they handled most everything.







I do not know if you can get on the MLS without an agent though. The MLS is owned by the NAR. It is private property and theirs to do with what they please. I have seen FSBOs on Redfin though. I think the biggest problem with FSBOs is that it seems like they are not usually realistic about the price.</blockquote>


all true and good stuff... however 99% of all realtors are going to avoid you like the plague because there is no incentive for them show buyers your home. </blockquote>


99% of all realtors will avoid you like the plague? That is the best reason to FSBO I have heard, and I am not joking.







[quote author="sugarspunZ" date=1242457399]





there is currently no shortage of homes for sale so unless you are priced significantly below the market you will get lost in the shuffle.



i am of the opinion to hire a professional to help me with things i am no 100% familiar with. sure i can read a few books about investing and tax saving strategies and i am sure i would be ok, but i would rather hire a trusted professional who is in the business of investment planning and tax saving strategies.</blockquote>


A trusted professional, yes. But I can count the numbers of realtors who are professionals on one hand. And even fewer that can be trusted.

And my experience is that the complicated work is done by the escrow company, not the agents.</blockquote>


<img src="http://meow.catsplz.com/cats/pictures/234/I-see-what-you-did-there.jpg" alt="" />



touche, unfortunately you are correct.
 
[quote author="flmgrip" date=1242451333]Hey all,



I'm thinking about selling my 1 1/2 old home. I'm not distressed, under water, short sale or forclosure. Plain old regular sale. My personal circumstances have changed and I'd rather not live in a 3bedroom by myself.



So what are the downsides of doing FSBO? What are the chances that the realtor I would hire for about $18k would actually sell my home?



Isn't a good listing on MLS (and redfin etc) the only thing I need. Most buyers seem to go online, look for homes they like and then tell THEIR realtor what they would like to see.



Why do I need a realtor? Have people here sold a home sucessfully thru forsalebyowner.com ?



I am somewhat firm on my price, if I wouldn't get any offers at or around that price I would probably stay put. I love the house and neighbourhood. The home is just too big for just me.



Thanks for your input</blockquote>
I'll list the property for you on MLS if you would like for a small fee (my broker requires it as I'm just an agent and he owns my listings and I had to pay the same fee when I listed my own condo for sale). Just take the pictures and write a good description and I'll use those in the listing. Also, I would advise you to offer a 3-3.5% buyer's agent commission so you get some activity through MLS. I would ensure that the buyer's agents contact you directly concerning scheduling viewings. I would recommend that you get a good idea of the sale comps and seeing what your competition is pricing at. If you are not distressed or need to sell then you are in a good position, let a knife catcher pay your price. Honestly, forsalebyowner.com is gonna be a waste of time. It's either MLS or bust. PM me if you want to take me up on my offer.
 
[quote author="sugarspunZ" date=1242457399][quote author="awgee" date=1242456812]I think it is fairly easy, but I would read a book or two on it.









We went to the escrow company with a signed purchase agreement and they handled most everything.







I do not know if you can get on the MLS without an agent though. The MLS is owned by the NAR. It is private property and theirs to do with what they please. I have seen FSBOs on Redfin though. I think the biggest problem with FSBOs is that it seems like they are not usually realistic about the price.</blockquote>


all true and good stuff... however 99% of all realtors are going to avoid you like the plague because there is no incentive for them show buyers your home.



there is currently no shortage of homes for sale so unless you are priced significantly below the market you will get lost in the shuffle.



i am of the opinion to hire a professional to help me with things i am no 100% familiar with. sure i can read a few books about investing and tax saving strategies and i am sure i would be ok, but i would rather hire a trusted professional who is in the business of investment planning and tax saving strategies.</blockquote>
Not true, if she throws out a buyer's co-op of 3-3.5% that will be incentive enough to have buyer's agents bring their buyers. But the price will be the key.
 
<a href="http://www.irvinehousingblog.com/forums/quotereply/35611/">http://www.irvinehousingblog.com/forums/quotereply/35611/</a>



[quote author="flmgrip" date=1202789407]uuuhhh ohhhh the world will collapse.... houses will sell again for $50k.... (in the greater L.A. area)



you just keep paying rent and tell yourself how much money you will save (the money that will crash in the stock market going parallel with your prediction in the housing market)...</blockquote>


What made you change your mind?



Good luck dumping that built on a superfund site Villages of Columbus property.
 
Once the property is listed on the MLS, why would the seller care if agents bring their clients? Buyers are all, (well, maybe not 100%), looking on the internet so it isn't like the property will not have exposure.





It is all about the price.







If a buyer sees a well priced home on the market that seems to fit their needs, why should they care if an agent wants to show it to them? If you think the buyer is going to forgo seeing a property that interests them because their agent says they don't think it is a good fit, I got news for you.





The buyer is going to contact the seller and see the house with or without the agent. It is all about the money and it always will be. This nonsense about buyer's agents not exposing a property if there is no commission listed is just more realtor scare tactic. "You better list a commission or nobody will see your home." What a load of ____. If the property is on the MLS or internet, buyers will find it. Think for a second. When you are ready to buy a home, are you going to wait for an agent to find a home for you, or will you be looking like a madman on the internet? And if an agent says they do not want to show you a particular property that looks good to you, what are you going to do? Geez, I am not even ready to buy and I probably know every home for sale in my neighborhood and maybe even before most of the agents in my neighborhood do.







It is all about the money.









Realtors - It is time to stop using scare tactics and start emphasizing what positive service you can bring. I wonder how much business Redfin did last year?







I never thought about paying a real estate agent a fee to list a home on the MLS. Thanks USCtrojanman.
 
[quote author="awgee" date=1242510683]Once the property is listed on the MLS, why would the seller care if agents bring their clients? Buyers are all, (well, maybe not 100%), looking on the internet so it isn't like the property will not have exposure.





It is all about the price.







If a buyer sees a well priced home on the market that seems to fit their needs, why should they care if an agent wants to show it to them? If you think the buyer is going to forgo seeing a property that interests them because their agent says they don't think it is a good fit, I got news for you.





The buyer is going to contact the seller and see the house with or without the agent. It is all about the money and it always will be. This nonsense about buyer's agents not exposing a property if there is no commission listed is just more realtor scare tactic. "You better list a commission or nobody will see your home." What a load of ____. If the property is on the MLS or internet, buyers will find it. Think for a second. When you are ready to buy a home, are you going to wait for an agent to find a home for you, or will you be looking like a madman on the internet? And if an agent says they do not want to show you a particular property that looks good to you, what are you going to do? Geez, I am not even ready to buy and I probably know every home for sale in my neighborhood and maybe even before most of the agents in my neighborhood do.







It is all about the money.









Realtors - It is time to stop using scare tactics and start emphasizing what positive service you can bring. I wonder how much business Redfin did last year?







I never thought about paying a real estate agent a fee to list a home on the MLS. Thanks USCtrojanman.</blockquote>
I don't know how much business Redfin did last year but they changed their reimbursement from 2/3 of the buyside commission to 1/2 of the buyside commission plus they let go of 20% of their staff.



Anyhow, if I was my own broker I would be able to list the property for her for free but since my license is under a broker I have to play by his rules which includes charging her a $500 fee which goes to him (I had to pay that out of my proceeds as well). I could have easily become a broker but I don't want to deal with the E&O insurance and having to save my files for years as required by CAR, I guess I pay the fees that I do to my broker for convenience and being able to hang 2 licenses with him for the price of one.



The buyer's commission is only for buyers that are brought by agents. Obviously if there is a buyer like you that sees her property on redfin or realtor.com and comes without an agent then she wouldn't have to pay that commission (the buyside commission is only visible by other agents). It's like with my condo that I sold, I offered a 3% buyside commission to bring in more potential buyers but would have been super happy if I had found a buyer like you who would have come with no agent and I would have probably been willing to reduce my reserve price by that 3% had I not had to pay the 3% buyside. It's not a scare tactic that having a buyer side commission will bring in more potential buyers, it's just reality.
 
ok... USC i see what you are saying and in theory it sounds great but...

what name and phone number are you putting on the MLS? yours? or the seller?

what does the seller do with an offer they dont like? do they know how to counter? where do they get the forms?

does the seller know all of the contingencies on the contract?

does the seller know what a legitimate loan approval is or a BS piece of paper from a broker?

who is the seller going to call for help? YOU!!! then what do you do? help for free? if so god bless you. lol

there are just to many ifs and most people are not knowledgeable enough to do it on their own. a naive seller is entering a pool of sharks doing a FSBO in this market if they offer a buyers commission and will never get their home sold if they dont IMO.



can it be done? absolutely

should it be done? IMO absolutely not. the 3% saving at best is not worth the headache.
 
not worth the $15k-$25k headache?



I could devote a lot of time and tylenol to make up for that amount of after-tax cash, personally. I could by a few Nolo books and forms. I could also hire a real estate lawyer for many hours.
 
[quote author="sugarspunZ" date=1242528652]ok... USC i see what you are saying and in theory it sounds great but...

what name and phone number are you putting on the MLS? yours? or the seller?

what does the seller do with an offer they dont like? do they know how to counter? where do they get the forms?

does the seller know all of the contingencies on the contract?

does the seller know what a legitimate loan approval is or a BS piece of paper from a broker?

who is the seller going to call for help? YOU!!! then what do you do? help for free? if so god bless you. lol

there are just to many ifs and most people are not knowledgeable enough to do it on their own. a naive seller is entering a pool of sharks doing a FSBO in this market if they offer a buyers commission and will never get their home sold if they dont IMO.



can it be done? absolutely

should it be done? IMO absolutely not. the 3% saving at best is not worth the headache.</blockquote>
That is up to her to decide. I would definitely help her out a bit but if it involved a lot of time then we would have to discuss some kind of fee arrangement. I typically stay away from the sell side because it involves a lot more time than the buy side and I only have a limited amount of free time.
 
[quote author="no_vaseline" date=1242468014]<a href="http://www.irvinehousingblog.com/forums/quotereply/35611/">http://www.irvinehousingblog.com/forums/quotereply/35611/</a>



[quote author="flmgrip" date=1202789407]uuuhhh ohhhh the world will collapse.... houses will sell again for $50k.... (in the greater L.A. area)



you just keep paying rent and tell yourself how much money you will save (the money that will crash in the stock market going parallel with your prediction in the housing market)...</blockquote>


What made you change your mind?



Good luck dumping that built on a superfund site Villages of Columbus property.</blockquote>


As usual you have nothing useful to contribute. For one the home I might want to sell is not in VoC, second if you would have read my OP you would understand that my personal circumstance changed.

My household is changing from 4 to 1 person.



I don't want to live by myself in a 3 bedroom 2000sft home and pay the costs associated with that. I have a great home but it's way to big for me.

I don't have a crystal ball what will happen with the real estate market, but nobody does...



I have no regrets that I bought my home and if it won't sell for what I'm asking for I will stay.
 
I want to thank everyone else for their reply. Some good stuff. Thanks!



Pricing for sure is the key and a realtor can help with that. But beside of that I guess the opinions are split between what a (sellers) realtor will do for the money. $20k is a lot of money to tell me a seling price. It seems most other documents are handled in escrow...



For all the offers to help and list, I kind of doubt I will go that route just because I don't want my property to be bashed or profiled... Certainly not in my interest.



I have to think about what to do, I just thought FSBO is a cheap way to find out I there is any interest at my asking price. And the FSBO does have a plan that includes MLS listing..



Does anyone know how the lockbox issue would be handled? Or do owner occupied properties don't have lockboxes?



Thanks everyone for their great input.
 
[quote author="flmgrip" date=1242559755]I want to thank everyone else for their reply. Some good stuff. Thanks!



Pricing for sure is the key and a realtor can help with that. But beside of that I guess the opinions are split between what a (sellers) realtor will do for the money. $20k is a lot of money to tell me a seling price. It seems most other documents are handled in escrow...



For all the offers to help and list, I kind of doubt I will go that route just because I don't want my property to be bashed or profiled... Certainly not in my interest.



I have to think about what to do, I just thought FSBO is a cheap way to find out I there is any interest at my asking price. And the FSBO does have a plan that includes MLS listing..



Does anyone know how the lockbox issue would be handled? Or do owner occupied properties don't have lockboxes?



Thanks everyone for their great input.</blockquote>


I'm happy to loan you a lockbox to use at your discretion, as I did for trojanman when he liquidated his condo, free of charge.

And my initial offer still stands, that beats anything FSBO offers.



Good luck,

IrvineRealtor
 
[quote author="flmgrip" date=1242559080][quote author="no_vaseline" date=1242468014]<a href="http://www.irvinehousingblog.com/forums/quotereply/35611/">http://www.irvinehousingblog.com/forums/quotereply/35611/</a>



[quote author="flmgrip" date=1202789407]uuuhhh ohhhh the world will collapse.... houses will sell again for $50k.... (in the greater L.A. area)



you just keep paying rent and tell yourself how much money you will save (the money that will crash in the stock market going parallel with your prediction in the housing market)...</blockquote>


What made you change your mind?



Good luck dumping that built on a superfund site Villages of Columbus property.</blockquote>


As usual you have nothing useful to contribute. </blockquote>


I just asked a question for clarification. Just for kicks, how much do you think you lost renting three rooms for a year, once you net out the rents against how much your property depreciated YOY?



<a href="http://www.irvinehousingblog.com/forums/viewthread/5100/#107522">I'm looking to see how much you lost like I figured out for this user.</a>



FWIW, I wouldn't do a FSBO even if I was a realtor. IMO the 3% is trivial to getting a deal done, particularly in this market. But I don't expect you'll listen to me since you seem particularly allergic to money.
 
[quote author="flmgrip" date=1242559755]I want to thank everyone else for their reply. Some good stuff. Thanks!



Pricing for sure is the key and a realtor can help with that. But beside of that I guess the opinions are split between what a (sellers) realtor will do for the money. $20k is a lot of money to tell me a seling price. It seems most other documents are handled in escrow...



For all the offers to help and list, I kind of doubt I will go that route just because I don't want my property to be bashed or profiled... Certainly not in my interest.



I have to think about what to do, I just thought FSBO is a cheap way to find out I there is any interest at my asking price. And the FSBO does have a plan that includes MLS listing..



Does anyone know how the lockbox issue would be handled? Or do owner occupied properties don't have lockboxes?



Thanks everyone for their great input.</blockquote>
You'll benefit a lot more from using an agent like IrvineRealtor then you would going through me or going through FSBO. I know what I'm good at and what I'm not so good at and my strength isn't on the sales side. It may seem like a lot of money to pay a listing agent to see your home, but agents like IR are worth their weight in gold especially on the sell-side. I said it once and I'll say it again, if I wasn't a realtor IR would have been my listing agent on the condo I sold.
 
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