MLS listing without a realtor (sale, rent, loans)

[rossc]

I don't think an agent is required in DE. My lawyer is handling all of the contract work. When I get a buyer, I just forward the names to the lawyer and they do everything that an agent would normally do.

[rdlr]

Originally Posted by rossc

Generally speaking, listing on MLS does mean that you have to give up 2-3%, which is what we're debating right now. We just have a problem paying someone $3000 to show our house when (1) We can do the same and (2) They are not really selling the house. We would be one stop on a buyers shopping tour.

Keep in mind, rossc, that Realtors are not being paid "just" to show your house. There's much more to Realtors' jobs than that, these days. Back in the 70's-80's the contract of sale was one page, back and front. Now, the contract of sale includes multiple pages, 10-15, plus numerous disclosures, including radon, termite, buyer/seller agency, seller disclosures, V.A. and FHA attachments, and other. For those sellers educated in all of those areas, they may decide that they do not need a Realtor. Another point I'd like to mention... it's the Realtors' job to "weed out" the lookers from the serious buyers. They usually have their buyers prequalified in advance to putting them in the car for a tour of properties. Most FSBOs allow all "lookers" to go through their homes, and really have no idea if they are serious buyers or not. From a seller's prospective, I wouldn't want strangers coming through my house, just on their word, that they might want to buy it. They may not even be able to afford it. Do they have a house to sell? How's their credit? Do they need to buy now, or a year from now?

I have a real estate license, but have not listed or sold properties since 1988. Disclaimer: I'm not looking for business. That work is too hard! Gone are the days when a Realtor just escorted buyers through homes, wrote up a one page contract, and collected a commission.

Originally Posted by rossc

I don't think an agent is required in DE. My lawyer is handling all of the contract work. When I get a buyer, I just forward the names to the lawyer and they do everything that an agent would normally do.

That's true. Anybody can sell their own house, and a Realtor is not required. And, that's smart to hire an attorney to review the contract, and add any addendums, disclosures, or attachments which may be required by law. There is the worry, though (in any case) does the person qualify for the loan? Will they be applying for a loan promptly in order to satisfy all terms of the agreement of sale? Or, will they decide to forfeit their depost because they found another house they like better, since they wrote their first contract? Realtors are good about instilling "time is of the essence" because they also have an interest in the settlement date.

[rossc]

Originally Posted by rdlr

Keep in mind, rossc, that Realtors are not being paid "just" to show your house. There's much more to Realtors' jobs than that, these days. Back in the 70's-80's the contract of sale was one page, back and front. Now, the contract of sale includes multiple pages, 10-15, plus numerous disclosures, including radon, termite, buyer/seller agency, seller disclosures, V.A. and FHA attachments, and other.

My lawyer, or any real estate lawyer, can do this for a fraction of what the agents want.

Originally Posted by rdlr

Another point I'd like to mention... it's the Realtors' job to "weed out" the lookers from the serious buyers. They usually have their buyers prequalified in advance to putting them in the car for a tour of properties. Most FSBOs allow all "lookers" to go through their homes, and really have no idea if they are serious buyers or not. From a seller's prospective, I wouldn't want strangers coming through my house, just on their word, that they might want to buy it. They may not even be able to afford it. Do they have a house to sell? How's their credit? Do they need to buy now, or a year from now?

My experience with agents has been just the opposite. You get a hot prospect, they love the house and make an offer contingent upon financing just to find out they couldn't get a mortgage on a cardboard box. I have more interest in selling my house than any agent and I can pre-qualify buyers over the phone with a few simple questions. All the agent cares about is selling "a" house, not specifically my house. The only thing an agent can do that my attorney can not is actually show the house.

I do admit that being listed on MLS and having that exposure to the market would probably help, but that too can be done for far less than 3%, never mind the 6% that a selling agent wants.

I think more and more people are starting to by without realtors because they can save between 3% and 6%. We are specifically shopping the FSBO market in Nashville just for that reason.

[rdlr]

I wish you the very best rossc!

[anniebleu]

rossc, and rdlr, I think I can share our experience with the two Realtors we worked with in the past, without offending either of you.

First Realtor was excellent in most respects, helpful indeed--though my husband did grumble that since our house sold to the first viewers on the first day, perhaps we'd been instructed to set the asking price a little too low. It worked for us though, and it was a great relief to sell quickly.

Second experience not so good in a number of ways. I'll point out one. The agent assured us that he would bring only qualified buyers to view the house. We learned, the hard way, that he was bringing anyone who wanted to take a look. Ultimately, we were pressured into making a decision regarding an offer (this is far too complicated to detail here), and later found out that this couple fell into rossc's "couldn't get a mortgage on a cardboard box" group.

[rossc]

I have agents contacting me from my CL ad knowing that this is a mobile on leased land saying that they have clients with guaranteed FHA or VA financing. Anyone who has been in the real estate business for more than 10 minutes knows that FHA/VA won't touch this type of property. That's the kind of agent I'm used to dealing with. They tell you want you want to hear so they can get you signed on an exclusive 6% contract. Before you sign they tell you how easy and fast your house will sell, then after you sign they start telling you all the reasons it isn't selling, which they knew right from the start. No different than a used car salesman.

[rdlr]

Annie, I sure don't get offended What a waste of time, with all the exchange of ideas here. I've had my good and bad experiences with Realtors, also.....I think everybody has. Then we could move on to car salesmen, repair techs, grocery stores, and on and on

Regarding FHA/VA financing, I don't know about FHA requirements.
For V.A. financing of less than fee simple ownership (leasehold), the V.A. has this to say:

.....Property involving a less than fee simple ownership (i.e., leaseholds, cooperatives, ground rental arrangements) ..... not eligible for appraisal without prior VA approval of the specific legal arrangement or project.....

There are some leasehold subdivisions which have been approved by the V.A. for V.A. financing, and some Realtors I know, have sold proerties in those type communties using V.A. financing......not arguing here, just some factual information.

[anniebleu]

rdlr,

Right you are about about some people involved in those other categories!
Might as well share what bugs me about grocery stores: way out of date products on the shelves. You try to check, but you're in a hurry....and then you reach for something at home and discover that the last date for sale was 2 years ago!

And back to the subject of the thread. Sort of. I'll be checking MLS listings for the next, probably, 5 years or so--the way things are looking now!

[movn2del]

Hey rdlr. Realtor state vs. attorney state is information we got from the realtor we used. In a realtor state, which is what we were told DE is, the realtor prepares the contract paperwork and deals with the seller with regard to the findings on the house, sewer and septic inspections, repairs, and such. In an attorney state, like NY, the attorney handles that stuff. I only know what I was told. Whether or not that is fact, I can't say.

[rossc]

The attorney can do all of that in DE. They may not usually do it because the realtor does it, but they can if requested. According to my lawyer, FSBO is becoming more popular as prices are coming down. If a realtor charges 6%, that's 6% I can drop my price and still end up with what we want after the sale.