Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Many times FSBO sellers in our area are selling it FSBO because the are not licensed and agents will not list their home without full disclosure. Often these homes have issues like sink holes and owners have tried to get ins. money and either succeeded or not but the property is flagged for sink hole and then it comes down to trying to hide it by not using a realtor and no property disclosures. We also have seen hidden roof issues, etc.
Aside from some decent sellers, most FSBO sellers try to go behind the realtors back to get the deal done without the agent, because it is easier to convince an inexperienced buyer about something than that "annoying" realtor who tries to protect their client for some pit falls.
If the FSBO was such a great deal than why would any seller worry about any agent bringing them a buyer or not...there are enough buyers who never use a realtor so what is the issue for any FSBO seller to find them?
There is a minimum fee I will work for, agreed upon in my buyer broker agreement. I point out when homes or FSBOs offer less and let them know they will have to make up the difference to me. Most the time, it's the buyers that decline to pursue that house.
Working with a FSBO is harder because the seller doesn't usually know what he/she is doing and the buyers agent ends up working harder to make sure everything is done correctly on both sides of the transaction. And for that, you want to offer a reduced commission. Not worth it.
However, I do keep my eyes out for FSBO here. Though there aren't many, I contact the seller if I think it matches what a buyer of mine wants. The biggest issue I have is that most them are way overpriced and the seller doesn't care about the comps. It makes it a giant waste of time.
Real estate in California is a whole different animal , where else are people bidding on how high the home will sell ! AS a rule I see things through different glasses than you. I see the true FSBO as the best person to know about the home. Sure bring along your "inspectors", for the most part their report is worth nothing, a waste of time and money. They have a disclaimer on everything they inspect. ( the stories I could tell ! )
I applaud the buyers agent for working their butt off and they should be paid a fair amount , nothing wrong with establishing a standard. I was a broker of property ( not people ) for over 30 years not a lot different other than our deals were measured in hours not months ! The buyer is always key, without him there is a no sale, so simple, yet maybe things are different in CA..... I do know there is a real shortage of homes to sell these days in strong markets. ....
Many times FSBO sellers in our area are selling it FSBO because the are not licensed and agents will not list their home without full disclosure. Often these homes have issues like sink holes and owners have tried to get ins. money and either succeeded or not but the property is flagged for sink hole and then it comes down to trying to hide it by not using a realtor and no property disclosures. We also have seen hidden roof issues, etc.
Aside from some decent sellers, most FSBO sellers try to go behind the realtors back to get the deal done without the agent, because it is easier to convince an inexperienced buyer about something than that "annoying" realtor who tries to protect their client for some pit falls.
If the FSBO was such a great deal than why would any seller worry about any agent bringing them a buyer or not...there are enough buyers who never use a realtor so what is the issue for any FSBO seller to find them?
Quite simple , advertizing , advertizing , advertizing . along with location. A good seller is going to market their home anyway they can, use all avenues available. There is nothing worse than putting your home in the hands of a Realtor and not trying to do your own part to make the sell. The days of the agent/owner relationship as a one sided sell are gone, or should be anyway.
But, the organized way is to find a house on our local mls system which has an offer of cooperation and compensation. Happy buyer and happy seller make for happy brokers.
A Seller is free to choose to be a part of the system or not. Then the licensees with interested buyers, have to individually work out a compensation plan.
If they choose not to, then why would they want to use the tools of organized real estate?
If there is more than one property in MLS, that fits the needs of the buyer, and the buyer is happy with their choices, why is there a problem?
They know (or should know) that when you compile the sale data for the MLS, the form (online or otherwise) leaves the seller precious little room in the fields to make notations, exceptions, etc. Thus, I'm left with the choice I made, which is 2%. Are we not supposed to start low, negotiate to the middle and agree on something in between?
Why would I want to start high (i.e. 3%) and leave myself no room?!!
Because they can't negotiate over commissions, that's why. A couple of rules to be familiar with if you are expecting agents to negotiate over the commission.
1) The MLS offering of compensation is non-conditional. That means what is offered there is what it is.
2) If you are in any of the MLS's outside the WVMLS, they are all run by the REALTOR boards. The REALTOR code of ethics specifically states that you cannot negotiate commissions as part of a purchase and sale agreement.
So no, you aren't supposed to start low and end somewhere in the middle. You are supposed to offer what you are going to offer. You can assume agents are boycotting you, but it is more likely that they are telling their buyer that they would have to pay them the difference between your offering and their minimum and buyers are choosing not to do so. That probably comes with a heavy dose of "FSBO's can be really difficult to work with..." too.
Because they can't negotiate over commissions, that's why. A couple of rules to be familiar with if you are expecting agents to negotiate over the commission.
1) The MLS offering of compensation is non-conditional. That means what is offered there is what it is.
2) If you are in any of the MLS's outside the WVMLS, they are all run by the REALTOR boards. The REALTOR code of ethics specifically states that you cannot negotiate commissions as part of a purchase and sale agreement.
So no, you aren't supposed to start low and end somewhere in the middle. You are supposed to offer what you are going to offer. You can assume agents are boycotting you, but it is more likely that they are telling their buyer that they would have to pay them the difference between your offering and their minimum and buyers are choosing not to do so. That probably comes with a heavy dose of "FSBO's can be really difficult to work with..." too.
...............that's 5K if an agent brings a buyer. We haven't had one agent stop by, call or email us. ..........
!
If you expect an agent to sell your house for you, I suggest that you list it with an agent. For Sale By Owner means that the owner is going to do the work of selling it. So, if you want to sell it yourself, get to work.
If you are an FSBO imo you just have to accept that you are going to have to pick up the pace at your end..as already mentioned
It's just part of the deal..
Means marketing and that means more than putting it on the local MLS & other sites
May mean calling around to Agencies/Agents and asking..Why?..What if? Initiate contact/discussion
%....Depends on your Market
Personally at this time I think in most markets 2.5% right or wrong is considered fair by many Agents/Agencies and FSBO's DOJ "Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent" I think that's probably still pretty accurate
No matter what the situation is an FSBO needs to compete just as every Agency listing/property competes..Photos, presentation, exposure, access/getting people to come look ect.
As far as Agents not showing FSBOs..
All the reasons given have merit (part of the need to compete theory) plus it's just a fact there are agents who have stated publicly (and foolishly imo) they don't show FSBOs period....variety of reasons
Stupid Flat-Fee lazy no-good!...only Full Service should exist ..work for less than????? why you arrogant no...
If FSBOs catch on it might not be good for business
Not saying there's a lot, I have no clue how many but I know some are out there cause they said so
All kinds out there..
Doesn't mean FSBO isn't the right decision just that part of the package is accepting/dealing with the way things are at the moment in your Market...
If you are an FSBO imo you just have to accept that you are going to have to pick up the pace at your end..as already mentioned
It's just part of the deal..
Means marketing and that means more than putting it on the local MLS & other sites
May mean calling around to Agencies/Agents and asking..Why?..What if? Initiate contact/discussion
%....Depends on your Market
Personally at this time I think in most markets 2.5% right or wrong is considered fair by many Agents/Agencies and FSBO's DOJ "Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent" I think that's probably still pretty accurate
No matter what the situation is an FSBO needs to compete just as every Agency listing/property competes..Photos, presentation, exposure, access/getting people to come look ect.
As far as Agents not showing FSBOs..
All the reasons given have merit (part of the need to compete theory) plus it's just a fact there are agents who have stated publicly (and foolishly imo) they don't show FSBOs period....variety of reasons
Stupid Flat-Fee lazy no-good!...only Full Service should exist ..work for less than????? why you arrogant no...
If FSBOs catch on it might not be good for business
Not saying there's a lot, I have no clue how many but I know some are out there cause they said so
All kinds out there..
Doesn't mean FSBO isn't the right decision just that part of the package is accepting/dealing with the way things are at the moment in your Market...
Nothing worse than putting your house up for sale, signing a one or two year exclusive , and then as soon as the ink is dry, you never hear from the agent again. I did this on my last house, mainly because the realtor acted as a buyer agent for me on the same house 4 years earlier. I had no idea i would be treated this way, so , I sold the house myself, end of story. People put way too much faith in the realtor times have changed, its not like that anymore. Never, never sign any exclusive binding contract with anyone !.
Nothing worse than putting your house up for sale, signing a one or two year exclusive , and then as soon as the ink is dry, you never hear from the agent again.
Why did you sign a 1-2 year contract? That's nuts. I'll do a one year for land as it typically takes that long, but for a house? It had better have a really good termination clause before I'd sign myself into a contract that long to anyone. You have to take some responsibility for shooting yourself in the foot.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
..work for less than????? why you arrogant no...
