FSBO, 3% Agent Commission? (RE market, contract, Realtors, listing)

[donsabi]

I had my house listed with a realtor and the results were terrible. Now I am going FSBO. I actually got a letter from another real estate agency that stated it would be impossible to sell my house because all RE agents would boycott it.
I certainly don't understand this because there is no cost to any realtors. I am offering 3% payable at closing. They are not listing it in the MLS, Realtor.com, or anywhere else. Realtors have "0" dollars invested into the sale of my home. 3% for a quick showing and that sounds pretty good to me. So what's the problem?
Don

[olecapt]

There are a couple of threads here that deal with that subject check them out.

First problem is that they don't know you exist. You don't show up on their tools. I would suggest that you figure some way into the MLS. In this market it is kind of suicidal not to be there.

Second RE Agents don't much care for FSBOs. That is for reasons which are reasonable and some that are not. You are going to get shown only if it appears a perfect match. Why do a speculative showing of a house where you don't really want to do a deal?

[julieb]

I am a Realtor. That letter sounds rude. The problem with FSBO is the Realtor ends up doing all the work. It is great you are offering 3% buyers agent comm. I am sure your house will get shown.

The problem is most FSBO do not know current laws and what is acceptable and not, what forms need to be signed and when. ie. Lead Disclosure, Property Disclosure Forms. We then negotiate the contract for all parties, handle all repair requests/disasters. A realtor ends up doing twice the work.

However, a good Realtor will show any house to their clients that they want to see, no matter the commission.

Hope that helps.

[PotterGeek]

Here's a thread regarding this very subject:

http://www.city-data.com/forum/real-...hate-fsbo.html

[PotterGeek]

As soon as my contract is up with my realtor, I'm going FSBO, too.

Wonder what would happen if everyone went FSBO and only offered 3% to a buyer agent?

If realtors can't sell the inventory and people are unhappy with their realtor(s), what do you think sellers will eventually do?

[olecapt]

Originally Posted by leavingbyron

As soon as my contract is up with my realtor, I'm going FSBO, too.

Wonder what would happen if everyone went FSBO and only offered 3% to a buyer agent?

If realtors can't sell the inventory and people are unhappy with their realtor(s), what do you think sellers will eventually do?

You are really beating a dead horse. FSBOs pretty much universally do worse than the agents. In a hot sellers market FSBO has a reasonable chance of success. The Buyers and their agents are driving hard to find a place and the pickings are slim...that is when you can FSBO. In the existing times the Buyers agents control the buyers and general don't care to deal with FSBOs. That is how it is. Our market at the moment sits on more than a years inventory. I don't care who you are or what marketing steps you take it is hard to sell into a years inventory. In such a market the FSBO sucks hind tit. Sure you can sell it. You can also win the lottery. This is probablistic stuff..and the FSBO probabilities are substantially worse than the lousey one of the RE Agent.

So go forth curse the RE gods...it will not make your house sell.

[PotterGeek]

You are really beating a dead horse

I'm sorry if I've offended you, or any realtor. Apparently I've struck a nerve, so I won't post anymore on the FSBO issue(s)

So go forth curse the RE gods...it will not make your house sell.

Neither will a REALTOR. Yet I'm promised the moon and more....

[mrsengle]

I had my house listed with a realtor and the results were terrible. Now I am going FSBO. I actually got a letter from another real estate agency that stated it would be impossible to sell my house because all RE agents would boycott it.

This sort of thing really makes me mad. If an agent states that your home will be boycotted, they are in violation of anti-trust law. Whatever medium you use to advertise (MLS, Craigslist, or otherwise), it boils down to the fact that you're being bullied. Give the broker of that agency a call and let 'em have it. I would at least let the state real estate commission have a copy of that letter, and make sure that broker knows it.

[olecapt]

Originally Posted by leavingbyron

I'm sorry if I've offended you, or any realtor. Apparently I've struck a nerve, so I won't post anymore on the FSBO issue(s)

Neither will a REALTOR. Yet I'm promised the moon and more....

You are not hurting anyones feelings for goodness sake...you are simply venting at the Gods. You have reached the conclusion that Realtors have failed you...and it may even be true...but that is likely not why your house does not sell.

I and a client have been peddling a little house here in Vegas for a year. She is a retired real estate broker from CA and I am a reasonable astute and succerssful agent in Las Vegas. We can't sell the place no matter what we do! And it is a nice place rationally priced. We have actually sold it twice including one lady who pulled out...said the deal was too good must be something wrong with the place.

Face it. The process is stochastic. There are odds of selling every month...But it never becomes a certainty. This little house does not sell because the gods pee on our pillar. We will drop the price a little more and continue...and it will sell. But maybe not for another 3 or 4 months.

That is life.

I did a listing pitch for a friend and prior customer yesterday. She has been FSBOing it for a few months. I told her in no uncertain terms she was priced $40K too high and that even if she came down to a rational price it could well take 6 months or more to sell and she might well have to drop her price another 15 or 20K. She may very well not list with me as a result. I pointed out that she had fallen behind the price curve and it was dropping away from her. I pointed out that she should come down a whole lot and fast to get out in front of the curve. And I pointed out if she failed to do so she would end up selling 18 or more months from now for far less than what she could get now.

Now if you think that is a "moon and more" pitch...you just need to find a better grade of Realtor.

[donsabi]

Thanks to all!
To clarify a few things I am not depending on a RE agent to do anything other than show my house. I have consulted with an attorney who instructed me as to what my obligations are. I have current disclosure and lead paint forms ready to go. My house is warranted and only seven years old. I am asking a prospective buyer to be pre-approved. I believe I covered all bases but if I did miss I am sure my lawyer will step in.
Based on these facts, is 3% a fair commission?

Leavingbyron,
Don’t worry about stepping on toes. That is just the way these boards work.
Understand not only is the RE market tight but so is the income of the agents. They are bound to be a little hyper.
BTW, the last two houses I listed with realtors were both sold by me. The one in DE was seen by a couple who were down for the weekend. They could not get an answer from the realtor’s phone number on the sign, so they knocked on my door. I showed them the house and it was sold on Monday.
Second house in NC was on the market for six months and during a yard sale a gentlemen asked me why I was having the yard sale. I told him because the house was for sale. He brought his daughter back after my yard sale and bought the house. I still paid full commissions on both houses. Don’t ever think the sign doesn’t sell!
Don