Rather than FSBO, what about interviewing some more realtors and finding one with a lower commission?
I've talked w/ 3.. Two smaller companies, one national company. Nat'l company said some realtors in his group list at 7.5% (and he has a few at that rate) but that he generally goes w/ 6% .. I think that is the going rate around here.
I did in 2006 (so hot market time)! The person I sold it to had a realtor friend draw up the contract & I hired a lawyer to review it for like $500. There was a bank & title company involved too. We also even did a personal loan for the amount above the appraisal (good ole days!). I think we got off paying less than $1k out of pocket. It worked out fine & they paid us the balance of the personal loan 2yrs into it. As far as marketing I only put a sign/flyers out front plus put it on CL. I sold it to the couple living across the street in my neighbors guest house within a week. I have no regrets--it (selling then & fsbo) was the best MM move of our lives!
Statistically, you are likely to end up with more cash in your pocket going with a realtor.
How/Why? (i ask that non-snarkily) Everything i've read says we will save XXXXX money by doing it ourselves. .. I would love to tell DH that we will save money by going w/ a realtor.
Post by simpsongal on Oct 15, 2012 14:51:11 GMT -5
Anecdotally, it seems like the folks who go with small-time realtors or FSBO either wither on the market for months or end up hiring a big name realtor eventually. It's probably worth a shot if you price the house to sell.
It will be interesting to see if home selling starts to change with the rise of internet searching and whatnot. As buyers, we picked all of our houses (her suggestions were awful), our realtor just met us there and opened the door.
Unless you have a lot of traffic or are in a hot market, you're going to end up paying to list with MLS or to advertise other places, so you might not end up saving anything plus have to deal with all the headache's yourself.
Post by badtzmaru22 on Oct 15, 2012 15:19:52 GMT -5
When we sold, we used a realtor, but it sold in three days. It wasn't even online yet, but the realtor had posted it internally, and another realtor saw it and scheduled a showing the next day. So, it just happened to be at the right place at the right time, even though it sucked to pay the realtor. I really think if that hadn't happened, it would still be on the market- that was 2009.
We bought our current home FSBO, and it was a breeze. The sellers dropped the price if we agreed to not use realtors.
Post by goldengirl on Oct 15, 2012 15:25:55 GMT -5
We sold our home FSBO in 2011. I'd say the biggest PITA was deflecting all the REA's that kept trying to list our home and kept telling us how difficult it would be for us to sell. We listed in late Feb and got our first and only offer on July 4th. We closed on 8/15.
It was work, and I have no idea if we saved money because I have no way of knowing what offers a REA would have been able to get. We were able to show the house at every single request and we were sure to make sure that any buyers agent knew they would get 3%. From everything I read you really need to offer the sellers agent commission or they won't show your house. That, and be sure you are listed in the MLS. You can do a fee for service for that.
Post by hannamaren on Oct 15, 2012 15:31:52 GMT -5
My parents sold FSBO and they were lucky because they live on one of the entry streets to the neighbourhood so people looking at other houses may see it. And they had a hot market. It took 3 mths to sell. They had to do a lot of work themselves - pay for signs, photo posting, contracts- still needed a lawyer, etc. They do not regret their choice.
Post by hbomdiggity on Oct 15, 2012 16:17:52 GMT -5
Don't get me wrong, I'm not a fan of the system or the flat 6%, but I likely wouldn't even consider fsbo. As a buyer I want to know that I am dealing with a licensed professional on the other end. As a seller there is enough little shit that I don't want to have to deal with and willing to pay someone for knowledge of industry standards.
A friend was able to negotiate down to 4.5, but this was also the second time using the agent.
How/Why? (i ask that non-snarkily) Everything i've read says we will save XXXXX money by doing it ourselves. .. I would love to tell DH that we will save money by going w/ a realtor.
Because a realtor is experienced at pricing your home correctly, drawing in potential buyers, marketing, etc. etc. Many buyers won't even mess with a FSBO home. Your odds of getting top price on your own just aren't great.
How/Why? (i ask that non-snarkily) Everything i've read says we will save XXXXX money by doing it ourselves. .. I would love to tell DH that we will save money by going w/ a realtor.
Because a realtor is experienced at pricing your home correctly, drawing in potential buyers, marketing, etc. etc. Many buyers won't even mess with a FSBO home. Your odds of getting top price on your own just aren't great.
This. Plus, buyers buying from a fsbo expect the house to be lower priced. Will the lower price equal the savings from not using a realtor? Crap shoot.
Oh 2 other things...we bought our first house FSBO (neither of us had a realtor) and I did consult a realtor about the pricing of our house we sold FSBO & she recommended $255K. I did lots of online research (what's available, what stuff is selling for) & thought that was way low...I listed at $350k and got a fullpriced offer within days. I knew my immediate area/market better than the realtor.
Realtor chiming in! If you have a good market, a good location and a saleable house, FSBO may be the way to go. I would suggest still offering 3% to an agent who brings a buyer - this way the agent is responsible for their clients and your liability lowers. This also means that agents will show your home and will significantly increase the likelihood of it selling quickly, and at full price.
My biggest caution to those going FSBO is to make sure everyone you let in your house has been pre-qualified for a mortgage, and you have their FULL ID (license, car plates, etc) before you let them in your house. Don't show it alone, either. It is very common for theives and robbers to target FSBO's because they let them in their house unidentified - so they scope the house, ask a few questions (where do you work?) to get to know your schedule, and use that to target your house later. it can happen with a realtor as well, but its less likely.
I would recommend using a realtor to purchase your next home because they will do the work for you and you aren't paying them directly. Most realtors will drop their listing commission when you commit to use them to sell & buy, so consider that if you decide to list.