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I will show FSBO's, but only as a last resort and only if it meets a lot of my clients criteria. Most of my clients don't have the time or inclination to mess around with FSBO's.
My most recent experience with a FSBO typifies why REALTORS find them difficult. Owners were flipping house next door to their own so were picky about the buyer. Owners slightly overpriced house that they had put "heart" into and had unrealistic expectations about the market place. Owners claimed an attorney would be handling things for them, but other than the initial offer, I know they never called the attorney with questions. They asked me. How do I know this? Because they accused me of taking advantage of the fact they didn't have representation when it came to the inspection response. Did I? Nope, response was typical based upon inspection report. Although some of my clients requests were outrageous during the course of the process, I still had to ask. These owners failed to grasp that I was required to make these requests. They failed to understand that I didn't choose the appraiser. They didn't like the fact that they had never heard of the inspector. Another agent could have mediated some of the hard feelings that developed because my clients were represented, and they were not.
I don't know if "conspire" is the best description, but most agents see a FSBO as a possible failed sales attempt and possible listing from a motivated seller.
"Knowing" that many FSBO's are not doing the best job they can to get results cuts several ways, which may make it much more difficult for an agent to compete a deal with a minimum level of hassles. Of course, they can run into a lot of the same problems with another "pro", but that's a different story altogether ... they're in the same boat together.
In my experience, most agents will not show a FSBO property due to their perceptions of the potential problems associated with the deal. I've had agents on my doorstep with the "if I could get you more money for your place, would you list it with me for 120 days?" approach. No ... I've already done my research, I'm at the top of the market, and there's no room to suck 6% out of my deal.
OTOH, if you have a specific qualified and interested buyer in hand and the prospects look good, I may consider a contract for a one-time showing with a reasonable fee for your services. It will not be 6%. Last property I sold where that situation arose, 6% to the broker/agent would have been almost $60,000; I showed the place and used my own appraiser, lawyer, and inspection service, title company for closing, etc., for total of less than $4,000 out of my pocket. In my view, $56,000 is a lot of dough ...
The buyer paid 3% out of their own pocket for the agent's services. They could have dealt directly with me and obtained the same deal and terms for a lot less money by using their own lawyer for a few hours to review the deal.
(which was on state standard real estate contract forms, no funny stuff, no glitches, no problems ....)
Great posts everyone! I started this thread and most have discussed mostly the FSBO option vs the flat fee mls question.
I'm thinking of paying $300 to a local, licensed realtor to list my house on MLS. The service includes the MLS, photos, distribution to hundreds of websites (realtor.com, etc.), a professional yard sign (that doesn't look FSBOish), brochure sign, lockbox, etc.
My responsibility would be to do other forms of advertisement and show it IF a buyer without an agent wants to look at it. Now, I have read some statistics (yeah, yeah, I know you can bend statistics) that state less than 2% of buyers come alone without an agent......so, I do not feel that I will need to spend much time showing the house. I've also been told by realtors that open houses are a waste of time so I'm not sure if I will do that either. I think that if I offer a decent buyer's agent fee (broker protected by MLS) that I should get good response.
I'm a little disturbed to read that some of you have such a strong FSBO/Flat Fee stereotype! Assuming all comments were true, I can see how it would be frustrating to deal with some of the problems mentioned from a realtor standpoint; however, I would hope that these problems are the exception rather than the norm. There are a lot of NORMAL FSBO sellers out there (like me!) and I would hate to be lumped together with them merely because I chose to list my house a certain way.
One thing to note is that my husband is an attorney specializing in real estate transactions and land use issues. It would just not make sense to pay for a realtor in our case. However, I don't want my house sitting on the market forever just because some realtors are prejudiced toward the idea.
Besides, a part of me thinks that making realtors work with non-realtors (FSBO'ers) could make their job more challenging and hence make it seem like they were earning their commission! It just seems too kooshy now. Besides, you aren't really diverting the types of behavior that was complained about earlier - you are merely just tossing in another person to mediate it. A true professional should be able to deal with this effectively.
Now, before ya'll jump on top of me and tell me how hard ya'll work....let me just tell you that it is popular perception.....not mine alone!
I think going for FSBO or discount brokerage..is a good option if you try it and get away with it...if it doesnt work out....then you can to a big firm place and pay the exhorbant fees.
Good post..I would hope that all RE agents dont think just because we want to do FSBO...we are trying to cheat someone out of making money..but if you live in a high market area like myself... standard 500k home with 6% commission..well thats 30k right. If you are moving 30 could be 10% down on another home.
In a buyers market with large inventories RE Agent don't mess with FSBOs or even MLS only guys. They don't need your property to satisfy their clients. So they won't.
In a strong seller's market they will beat a path to your door even taking a reduced commission.
In a buyers market with large inventories RE Agent don't mess with FSBOs or even MLS only guys. They don't need your property to satisfy their clients. So they won't.
In a strong seller's market they will beat a path to your door even taking a reduced commission.
It is simply human nature. Nothing personal.
Hmnnn that might be the case..but what if potentials buyers are a perfect match for the potential sellers....are the RE agents NOT going to show the home then..to me that is what the initial problem is...I think a good agent is going to make a living no matter what...and if they are just banking on the 6 % commisions and bad mouthing the FSBO instead of trying to find a way to "work" with them so they get a little bit of the cut, the owners sell and the buyers are left happy with a fair market price paid..then that truly doesnt make them a good agent.
Cookie cutter homes here are dime a dozen...all of them are in the 500k and up range..they are sitting...reason being is that there is nothing special about them..so potential buyers like myself..dont mind waiting...on the other hand, if I saw a for sale by owner that was the right home and the right price....I certainly would try and negotiate with the owner...know why..because I would try and talk him down at least 6% of what he would have a paid a RE Agent.
So I guess that is the flip side of the coin. Or is that a low ball offer then? :-)
Besides, a part of me thinks that making realtors work with non-realtors (FSBO'ers) could make their job more challenging and hence make it seem like they were earning their commission! It just seems too kooshy now. Besides, you aren't really diverting the types of behavior that was complained about earlier - you are merely just tossing in another person to mediate it. A true professional should be able to deal with this effectively.
Now, before ya'll jump on top of me and tell me how hard ya'll work....let me just tell you that it is popular perception.....not mine alone!
gina , and thats why so many folks jump into gettin licensed in real estate,,,thinkin its so easy and the work isnt hard,,
the "work" isnt physically hard,,you know what is most stressfull in our lives,,,,besides impossible clients,,and closing agents and mortgage brokers that cant use a calculater,,its real estate attorneys!! once they get involved, the process is so drawn out and cumbersome,,,,usually one party wants out,,even tho they lose there earnest money!
(you mean its not fair to generalize about attorneys??) (and if an attorney time is taken,,they get paid very very well,,no matter if the deal goes thru or not)
the average "drop-out" rate is 90% within 2 years(for new licensed r.e.agents) so, it cant be that easy!
Sorry, not trying to be a grump. I am just trying to learn what is ok or not ok to ask or expect and also trying to find out when someone is trying to pull one over on me. Thanks to all for advice. Our market is really not that bad. Homes are selling. They are not flying off the market like before but they are selling. It's just like a normal market like it was before all the chaos started. This latest realtor though told us they are totally broke and desperate to make a sell. That is pretty scary to hear. But I look on-line at the property appraiser's website at the sales list each month in and I see things selling. Maybe there are just too many realtors down here now. Back in the boom era it was good but now it's too much for the amount of sales. Just a thought.
Yes, I did fail to mention on here the exact % we will pay to a Buyer's Agent but it is advertised on our website. We are willing to pay more than 3% but the numbers this other person gave me just didn't add up. And when I re-read it I realized she had given me a totally different selling price. Most likely it was an accident but it had me thinking something sinister was up.
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Look - it ain't rocket science
