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.
Buyers: Do you expect, and are you willing to negotiate with an owner on a For Sale by Owner listing the same or as much as you would a Realtor on a MLS listed property?
I'm not sure I really understand your question, but I'll take a crack at it anyway. If I'm making an offer on a house I'm going to figure out what I think is a fair price (probably a bit of a range). I'm not going to buy the house if the price doesn't end up in that range (or lower if by some chance that works out).
Yes. Sometimes, if the house seems overpriced, I would expect to negotiate more. In my experience, FSBO houses are being sold by people who 1) feel the house is worth more than a realtor has told them it is based on comps; 2) don't want to have to pay realtors' commission and are willing to forgo a huge contingent of buyers due to not accommodating buyers' agents either; 3) have a very small price margin to work with in order to not have to bring a large check to settlement just to sell their house. I;m not saying those are the only reasons people do FSBO by any means, just what I have come across in my house hunts.
I was just wondering if Buyers are as comfortable negotiating directly with the owner of a property or with a realtor representing the owner. Do they expect to negotiate with a realtor but expect the For Sale by Owner Listings to not be willing to negotiate? Just wondering if Buyers have a preference or a pre-conceived idea about one verses the other
I don't care who I negotiate with. It's a business transaction. However, I agree with some of the other posts that you know the seller is saving 6% so I know I should get a better deal.
That is, if two exact houses were for sale; House A was FSBO, and House B was listed through an agent...I would be able to purchase House A for probably 3+% below the price of House B. That's after you determine your walk-away price as a buyer.
I don't care who I negotiate with. It's a business transaction. However, I agree with some of the other posts that you know the seller is saving 6% so I know I should get a better deal.
That is, if two exact houses were for sale; House A was FSBO, and House B was listed through an agent...I would be able to purchase House A for probably 3+% below the price of House B. That's after you determine your walk-away price as a buyer.
The National Association of Realtors has done studies on FSBO stats. FSBO's accounted for 13% of home sales in 2008. The typical FSBO home sold for $153,000 compared to $211,000 for agent assisted home sales. There are a variety of other reasons selling your own home is a pain. 1. you have to deal with people pulling into your driveway and wanting to see the home right now. 2. you have to consider the safety of the homeowner, especially if the wife is behind and the husband has moved on. 3. If you work you have to be able to run home and show the home whenever someone wants to see it. 4. you have a million realtors bugging you about listing with them. 5. you have to hire a lawyer anyway. 6. unless you have done it before the paperwork can be tricky and there are con artists out there ripping people off. If people want to try it I say go for it, I personally don't think it's a great idea but who knows. I did it 10 years ago before I was an agent 3 times and it worked well for me, and I made money, of course I didn't work, carried a little 38 special, had large dogs, and the market was hot.
The typical FSBO home sold for $153,000 compared to $211,000 for agent assisted home sales.
You now presenting that particular statistic this way without explaining the data is misleading, I think. That statistic is based on just an average, and NOT based on a comparable home measure. I think in general, FSBO's, are people with lower to moderate homes. As such their average home price would naturally be lower. People who live in luxury homes generally don't have the time to market their own properties. As such the higher end brings up our agent assisted averages.
I think more importantly for FSBO's that this statistic is that in the 2009 survey of the 11% that sold FSBO, 85% had an agent involved in some level as a buyer agent, fee-for-service, whatever, which leaves 1.65% as true FSBO's. To me that is a clear indication that consumers want at least some level of real estate agent involvement in the transaction.
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.
Buyers pre-conceived idea's
