FSBO vs Listing Agent (days on market, condos, brokers)
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Oh I agree. I wasn't kidding when I said the way to do it is move out and then list it! Unfortunately, most people can't do that.
But I think some people feel better without a lockbox on there. Then they know they are informed beforehand of all showings, and if they choose to be present, they can.
Oh I agree. I wasn't kidding when I said the way to do it is move out and then list it! Unfortunately, most people can't do that.
But I think some people feel better without a lockbox on there. Then they know they are informed beforehand of all showings, and if they choose to be present, they can.
For a FSBO I would recommend against a lockbox, because it's a code that has to be given out, and once someone has the code, they can come back anytime, and can give the code to others.
If it's listed, there is a choice, lockbox (only accept the Supra lockbox) or no lockbox, whichever is comfortable, but still convenient for buyers.
Lack of communication is one of the big complaints, and it's justified.
The FSBO is not only going to be dealing with buyer calls, and neighbor calls who just want to know the price of the home, but also calls from agents who market to FSBO's.
There are many agents whose niche is marketing to Expired Listings and FSBO's. My suggestion to the OP is to be open to the agents; invite them to see the home; ask them questions about it, in order to get some free advice if it's needed. And tell them that if they bring a buyer you will pay them a 3% commission. That may open up another pool of buyers for the home.
If the home doesn't sell FSBO, then you've met some agents and may have met one that you feel is a match for you.
On the other hand, if you don't want to ever list your home, and if you don't want to pay a commission to an agent who brings a buyer, then your voice mail should say that "buyers are welcome to bring their agent but the agent will be paid by the buyer".
Another way to reduce the number of calls is to put a flyer box on the sign with details of the home including the price. If the price and home amenities aren't what the person is looking for, they won't make that call.
It can be a simple black and white flyer on normal paper with the info typed from a Word program in large letters.
Price $2xx,xxx
3 Bed rooms
2 Bath
2 Car Garage
xxxx Square feet
xxxx Lot size
Built in xxxx
Just use large text and centered. Keep it very simple with just that basic information they need. The basic info will tell a potential buyer if this house is a candidate. Those looking for a $100k home will read it and move on so you won't be bothered by phone calls from people looking for different price ranges or those needing more bedrooms.
Your neighbors won't have to call you anonymously to find out the price.
To "help" prevent door knocking buyers, you may wish to include at the top in large letters:
Shown by Appointment Only
Call 602 xxx-xxxx
One other thing one has to think about when listing a FSBO is following the Fair Housing Act and such when writing the listing.
There are many words the MLS' I've dealt with won't let you use in a description, words you'd think were completely benign like "close to xxx church" or "quiet neighborhood great for retired folks" etc. It doesn't take much to get sued nowadays I guess.
thought I'd update this thread with our experience...
We decided to go the FSBO route, here was our marketing strategy and price:
1. 2 FSBO signs at Ace Hardware, front yard/back wall. $30
2. 35 high quality pics of our cleaned/uncluttered house. Free
3. Created a simple webpage on my server where users can scroll through photos. Also added a contact box where people could submit inquiries, my wife and I would get emails when they question was submitted. Free
4. Created craigslist post with 4 of the best pics, house details and price. A link to the above website page was also included. Free
Hours after posting the cl add/website, the emails started flooding in, it was difficult to return all the calls and narrow down serious vs. not serious buyers.
We started with a cash buyer who was funding the purchase with an IRA acct...Total mistake. He would never sign anything, and even had inspection/appraisal without signing a contract. He then tried to low ball us, saying the house didn't appraise for our asking price $272K, but after 4 requests to simply see the appraisal, I never saw it. It was simple, you prove the house didn't appraise, and you get the house for what your offering...that never happened.
Like idiots we stopped showing the house, so the above buyer wasted 3 weeks of our time...we were waiting, waiting and finally told him the deal's off. About 2 days later a different, qualified buyer delivered a signed purchase contract + earnest deposit to our door. He was motivated and loved the house, only prob. was the holiday weekend. He had commitments out of State and didn't think he would have enough time to perform due diligence. 2 days later I got a call from Title Co. that they buyer is requesting his check, and is backing out of the deal. After speaking with him he said that I would need to put on a new roof, (even though the inspection reported NO leaks) simply because it was 25 yrs old...Repair a non-leaking roof...I don't think so. I should have known, this buyer backed out of another contract before delivering a contract to our door.
Because we were now a bit smarter, we had kept in contact with another qualified buyer during the negotiation with buyer #2. Within hours of buyer #2 pulling out, we had another signed/delivered contract from the agent of buyer #3. They were willing to accept the 3 wk old inspection, (thanks to the 1st buyer paying/sending it to me) to save time. We agreed to fix health/safety issues, which were nothing major. They then ordered a termite inspection and appraisal. No termites and appraisal came back at contract price, $269K. We also negotiated a 1.5% commission with the buyer's agent. The loan is going through final approval this week and looks like closing is set for Tuesday.
What a process, we've learned a TON about real estate transactions. I've gotten pretty familiar with AAR forms, how to fill them out, and where to download them (nice they are provided online). I enjoy learning new things, and prefer to educate myself rather then take someone's word for it. I've also learned that purchase contracts secure the house for the buyer and thus are more beneficial for the buyer. Seems like the buyer can pull out with a moments notice and receive all/most of the earnest $ back. The seller is forced to start over...major bummer.
Did we save going FSBO--In my opinion, Yes. However, if you factor in our time we spent dealing with buyers, buyers agents, inspectors and appraisers, the FSBO option may not be for everyone. With that being said, nothing is free. If your not willing to WORK for a potential $10K - $15K extra cash in your pocket, you'd better hire a listing agent.
wish us luck, hopefully we have a final sale come Tuesday!
Thanks for this update ! I appreciate you spelling out all the things that can go wrong (and right) cause I am right there, trying to decide how to go about listing my house. Great thread and update.
One other thing one has to think about when listing a FSBO is following the Fair Housing Act and such when writing the listing.
There are many words the MLS' I've dealt with won't let you use in a description, words you'd think were completely benign like "close to xxx church" or "quiet neighborhood great for retired folks" etc. It doesn't take much to get sued nowadays I guess.
There's a 27 bedroom house next to an LDS church that just sold near me. I had to laugh at one of the MLS photos, which clearly showed the church next door.
thought I'd update this thread with our experience...
We decided to go the FSBO route, here was our marketing strategy and price:
1. 2 FSBO signs at Ace Hardware, front yard/back wall. $30
2. 35 high quality pics of our cleaned/uncluttered house. Free
3. Created a simple webpage on my server where users can scroll through photos. Also added a contact box where people could submit inquiries, my wife and I would get emails when they question was submitted. Free
4. Created craigslist post with 4 of the best pics, house details and price. A link to the above website page was also included. Free
Hours after posting the cl add/website, the emails started flooding in, it was difficult to return all the calls and narrow down serious vs. not serious buyers.
We started with a cash buyer who was funding the purchase with an IRA acct...Total mistake. He would never sign anything, and even had inspection/appraisal without signing a contract. He then tried to low ball us, saying the house didn't appraise for our asking price $272K, but after 4 requests to simply see the appraisal, I never saw it. It was simple, you prove the house didn't appraise, and you get the house for what your offering...that never happened.
Like idiots we stopped showing the house, so the above buyer wasted 3 weeks of our time...we were waiting, waiting and finally told him the deal's off. About 2 days later a different, qualified buyer delivered a signed purchase contract + earnest deposit to our door. He was motivated and loved the house, only prob. was the holiday weekend. He had commitments out of State and didn't think he would have enough time to perform due diligence. 2 days later I got a call from Title Co. that they buyer is requesting his check, and is backing out of the deal. After speaking with him he said that I would need to put on a new roof, (even though the inspection reported NO leaks) simply because it was 25 yrs old...Repair a non-leaking roof...I don't think so. I should have known, this buyer backed out of another contract before delivering a contract to our door.
Because we were now a bit smarter, we had kept in contact with another qualified buyer during the negotiation with buyer #2. Within hours of buyer #2 pulling out, we had another signed/delivered contract from the agent of buyer #3. They were willing to accept the 3 wk old inspection, (thanks to the 1st buyer paying/sending it to me) to save time. We agreed to fix health/safety issues, which were nothing major. They then ordered a termite inspection and appraisal. No termites and appraisal came back at contract price, $269K. We also negotiated a 1.5% commission with the buyer's agent. The loan is going through final approval this week and looks like closing is set for Tuesday.
What a process, we've learned a TON about real estate transactions. I've gotten pretty familiar with AAR forms, how to fill them out, and where to download them (nice they are provided online). I enjoy learning new things, and prefer to educate myself rather then take someone's word for it. I've also learned that purchase contracts secure the house for the buyer and thus are more beneficial for the buyer. Seems like the buyer can pull out with a moments notice and receive all/most of the earnest $ back. The seller is forced to start over...major bummer.
Did we save going FSBO--In my opinion, Yes. However, if you factor in our time we spent dealing with buyers, buyers agents, inspectors and appraisers, the FSBO option may not be for everyone. With that being said, nothing is free. If your not willing to WORK for a potential $10K - $15K extra cash in your pocket, you'd better hire a listing agent.
wish us luck, hopefully we have a final sale come Tuesday!
Congratulations, despite your struggle, it sounds like going the FSBO route was a success. Aren't you grateful that you at least gave it a shot? Remember, not only did you gain 10-15K in savings, but the knowledge and experience you gained from this was nearly as valuable. Now that you've done FSBO, the next time you attempt it, you will be much more efficient.
... I've also learned that purchase contracts secure the house for the buyer and thus are more beneficial for the buyer. Seems like the buyer can pull out with a moments notice and receive all/most of the earnest $ back. The seller is forced to start over...major bummer...
Congratulations on getting your home sold.
Just as a point of clarification, in the past, the purchase contract was skewed in favor of the seller. That has changed over the years so that today it is evenly weighted for buyer and seller.
The buyer can pull out at any time, however, it must be for a legitimate reason that's covered in the contract, otherwise they will not get their earnest money back. In a conflict over whether the buyer gets a return of the earnest money, the title company will make the final decision based on the language in the contract and any addenda.
After the due diligence period is over, the buyer cannot back out because of anything else they discover (unless it's something hidden by the seller).
Example: After the due diligence period they discover a sex offender lives across the street. They cannot cancel without losing their earnest money because they had to have discovered that during the due diligence period.
After that period the next contingencies are the appraisal and loan approval contingencies. If the appraisal doesn't meet the purchase price they can cancel. If the loan isn't approved, they can cancel, provided that they have made diligent efforts to provide all the information in a timely manner to the mortgage company and are working diligently to get the loan.
Remember that the buyer has invested a significant amount of time and money into doing the due diligence, paying for inspections and appraisals, and if it falls through, they also have to start all over (with less money in their pocket).
The LSU's are the way for the seller to monitor the loan process so see if the buyer is making the good faith effort to obtain the mortgage,.
The seller can also cancel at any time, but the buyer doesn't have any earnest money from the seller. The buyer may be able to sue for specific performance, but would it be worth the risk of losing such a case?
Congratulations, despite your struggle, it sounds like going the FSBO route was a success. Aren't you grateful that you at least gave it a shot? Remember, not only did you gain 10-15K in savings, but the knowledge and experience you gained from this was nearly as valuable. Now that you've done FSBO, the next time you attempt it, you will be much more efficient.
yes, I would rather put in a little extra effort and do it myself, while at the same time, learning in the process. All the required documents to complete the transaction (using legally binding forms) are freely available to download online. Simply reading them and gaining tips online (this forum is a great place to start) and you're on the way to selling. It's nice using the AAR forms as they protect buyer AND seller alike.
Like I said above, FSBO isn't always the answer. If we had lost our job and needed to sell our house quickly, or had other hard-pressed arrangements, FSBO probably wouldn't be a a good idea. In our case, I am keeping my same job (opening new office out of state) and my wife had a job waiting. We were able to casually go about the process of selling; of course, this isn't always the case.
...
What a process, we've learned a TON about real estate transactions. I've gotten pretty familiar with AAR forms, how to fill them out, and where to download them (nice they are provided online)...
Where online did you download these forms?
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