FSBO vs Listing Agent

[Captain Bill]

Originally Posted by observer53

Interesting that the AAR site has taken down the forms page in the link given above. Temporarily or permanently, can't tell. Copyright's a copyright, though. You didn't have any "trouble" with the forms because you weren't dealing with the copyright holder.

I checked the site and they haven't been taken down; they've just been moved to a different page, but still in the public area. As someone mentioned earlier, they are probably in the public section so the public can see them if they wish. However, they are copyrighted and have SAMPLE written on them.

[Sunni2012]

R

Originally Posted by sherayn

We agents have multiple offers on our listings within 2 days, (haven't even had a sign or lockbox up at my last 4 listings). Check the days on market on fsbo.com and other sites... I know because I look every day as there aren't enough homes for my buyers. I search their criteria in the fsbo's just in case there is a fit, and then I see if they'll work with me.

On average Realtors bring higher offers (and faster) thus netting more, why worry about; showings, knowing what to say and what not to, what works in an ad and what doesn't, taking calls at all hours, unqualified buyers wasting your time, criminals casing you and your home, inspections, environmental issues, city-county codes, HOA transfers, repair negotiations, financing arrangements, appraisals etc. all of which may take you twice as long to handle as an agent who does it for their living. Real estate atty will likely also handle some of these things...be sure to jot down what their hourly rate is during your interview process. You don't have to use a title company either...but that just sounds crazy right!


Do you pull your own teeth?
Do you fix you own electrical or a/c issues?
We are also professionals, we receive continuous education, and we are regulated by our brokers, our boards and the state.

You're paying for peace of mind

There are many smooth transactions out there and hopefully yours is one of those, good luck to you either way!

some of this statement is why i wont use a real estate agent when selling.

"Multiple offers within 2 days" basically depending on your commission 3-5% in those few days your doing VERY little to earn 10-20k plus for commissiion. To me thats rediculous to pay and agent for little work.
I have friends who hired agents and there house sold on the first day listed on Mls, so the agent made $15k for a listing on Mls, another friend sold there house during the sellers open house. Needless to say, paying that kind of commission and how fast the houses sold..Both said they will never use another Agent when selling.
And yes all real estate agents want to sell the house higher= more commission
If you place a FSBO add that specifies the buyer bring a Pre-Approved letter with them and recent credit score if needed, your not wasting your time.
A real estate attorney will handle all, the ones ive talked to do, there fee is $1200, alot better than $10k plus commission. With all the online sites etc, the internet is the 1st place people go, to see homes for sale. If someone has a high interest in your house, it will sell if the buyer wants it, whether its Fsbo or Agent.
Comparing a Dentist and electrician to selling your own home is not even in the same venue. Your not going to get an infection or electricuted Selling your own house. At worst youll save Thousands of $$ or not sell and wait for a better time.

[MN-Born-n-Raised]

Originally Posted by sherayn

We agents have multiple offers on our listings within 2 days, (haven't even had a sign or lockbox up at my last 4 listings).

It sounds like you are under pricing your homes or you are to slow to add the sign and lockbox. I'm just say'in!

Additionally, the market is the main reason why you are having mutiple offers inside of 2 days (not so much you). Back in 2008, how many multiple offers did you get inside of two days ?

I am willing to pay for expertise and service but unfortunately I can sell my home better than most agents. I had to fire my MN listing agent because he was (a very nice and professional) idiot. I then paid $395 to have it listed on MLS with a full 3% for the buyers agent. Add $75 for an electronic lockbox and $20 total for electronic scheduling. Now I am the "listing agent" and no FSBO was listed anywhere. Even after I fired my sellers agent (and at the same price), I had 20 showings inside of 2 weeks and a few offers. Why? The home was desirable and I hired a professional photographer($150). Additionally, it was priced at market.

I did the flat fee listing to have control. But it WAS a hassle and I don't think most people could of did what I did. In the spirit of full disclosure, a VERY nice Realtor on this Phoenix C-D forum helped me though several technical questions as well as strategic questions (and there were many). The home I just sold is an example of things that can go wrong. I'd highly recommend the agent on this forum and he is in the Gilbert area. Those interested, DM me but he posts here the most. We butted heads initially but he has earned his wings.

[Captain Bill]

Originally Posted by Sunni2012

some of this statement is why i wont use a real estate agent when selling.

"Multiple offers within 2 days" basically depending on your commission 3-5% in those few days your doing VERY little to earn 10-20k plus for commissiion. To me thats rediculous to pay and agent for little work...

On the face of it, one could say yes you are correct. And I will agree that if one has sufficient knowledge then they can sell their own home, and there is no reason why they shouldn't.

However, there is much more to selling a home than putting it on the mls and getting multiple offers in one day. Many things can go wrong in a transaction, and there can be a multitude of issues to negotiate or renegotiate throughout a transaction, and one wrong move, due to lack of knowledge and experience can cause a deal to fall through.

Regarding your commission analogy, the $10-20k commission is assuming a sale price of $325 to $650k

The median sales price in the Phoenix area is $152,000, and commissions for a listing agent can range from 2-3%. That median commission is more like 3k to 6k, not 10-20k.

And, considering that the homes with multiple offers are mostly below $150k, the commission amount would be lower.

[Sunni2012]

Originally Posted by Captain Bill

On the face of it, one could say yes you are correct. And I will agree that if one has sufficient knowledge then they can sell their own home, and there is no reason why they shouldn't.



Regarding your commission analogy, the $10-20k commission is assuming a sale price of $325 to $650k

The median sales price in the Phoenix area is $152,000, and commissions for a listing agent can range from 2-3%. That median commission is more like 3k to 6k, not 10-20k.

And, considering that the homes with multiple offers are mostly below $150k, the commission amount would be lower.

Sorry should of specified, here in Ma.,agents get 5-6% it's crazy. My house was going to be listed at $330k but to give and agent $16k to sell. I said NO Way. Id be losing $$ after paying commission and seeing the whole House has been remodeled .So I would prefere to sell myself or even better Rent it out and keep for investment or Untill the market turns around an sell for alot more

[Captain Bill]

Originally Posted by Sunni2012

Sorry should of specified, here in Ma.,agents get 5-6% it's crazy. My house was going to be listed at $330k but to give and agent $16k to sell. I said NO Way. Id be losing $$ after paying commission and seeing the whole House has been remodeled .So I would prefere to sell myself or even better Rent it out and keep for investment or Untill the market turns around an sell for alot more

It's probably that the listing agent gets 5-6%, but out of that must pay the buyers agent, which in that case would most likely be 3%, so the listing agent would get 2-3%.

One question, and not as a point of argument, because as I mentioned, I think if one has the knowledge, skills, and time, there is no reason why they shouldn't sell it themselves.

My question is why would it be ok for the agent to be paid the commission, whatever it is, if the house took 6 months to sell, but not ok if the home gets sold in one day.

The agent still has marketing expenses, much of that marketing expense to attract buyers to their listings is back office website expense plus labor, and the public is not aware of that. The rest is in negotiating and working through the transaction to make sure the seller is protected from making errors that could create a law suit, and to keep the transaction from falling apart.