Not much success with selling FSBO, need tips! (disclosure, 6%, agents)

[Thr3stripe]

Originally Posted by poppydog

You said you sold several other homes FSBO? What worked there?

First off, you must realize that most prospective buyers are likely to feel a bit apprehensive about an FSBO sale - especially if they aren't already working with a realtor. This is not something they're likely accustomed to, and are likely going to feel insecure and at risk. The more that you're able to describe the overall process to them and make them feel comfortable as to how their risks are covered, the higher the likelihood of them making a commitment.

Like in any sale, you first need to make the house as attractive as you possibly can to prospective buyers. Especially its street appeal. Landscaping and other aesthetics are important. Make things as clean and uncluttered as you possibly can - both inside and out. Rent a storage locker if you must, but UNCLUTTER everywhere! Also, realize that not everyone may have the same tastes that you have in colors and styles. NEUTRALIZE , wherever you possibly can. You might think that folks will be able to "see passed" your preferences, but most can't. Most want to be able to see themselves living in your house day 1. Eliminate most family portraits or photos - especially those on walls.

Truly and realistically analyze what the market will bear for your property. Realize that folks will be expecting to pay a tad less than what going market prices are simply because it's an FSBO. Make sure you accommodate for paying a 2.5 or 3% commission.

Spend time putting together a brochure (keep it at one page - front and back). Make it as professional as you can. Include (good and flattering) photos of both the outside of the property as well as the most prominent rooms in the house. Use good quality glossy paper. Make the asking price prominent. List important details of the house and the property - when built, square footage, lot acreage, types of utilities and services. List what other items are included in the sale of the property (appliances, washer/dryers, ceiling fans, draperies, blinds, etc.). Also list out whatever recent improvements you've made, or if say that the air conditioner, furnace or roof was replaced within the last 5 years.

Ensure that whatever you put onto the MLS and Zillow sites is completely consistent with what is on your brochure. If you modify anything on one, you need to immediately do so on the other. That said, you do want to have as many photos on the MLS and Zillow sites as you can. But limit those on your brochure to a select few that best show off your house.

I believe we used Owners.com to list via MLS. I think they broker to a licensed realtor in different states or areas. It was pretty easy as I recall. I think we paid $395 for a 6 month contract, and we were limited to something like 3 or 4 updates/modifications to the listing I believe.

Have Open Houses on Sunday afternoons. Don't have one every weekend, but if you see that there's going to be another open house or two in your neighborhood for a particular weekend day, schedule to have one on that same day as well! Folks love being able to go through multiple houses within a short distance of each other.

Probably the single biggest thing you will need to have handy are copies of blank sales agreements. These should be the accepted form/format for the county/state in which the house is for sale. You should be able to get a copy from the contracted MLS realtor, or from the county's local Bar Association. If the buyers are working with an agent of their own, their agent will handle all of this. If they aren't (which is a great thing, as you won't need to pay any commissions), then it might makes sense for them to engage with a lawyer to review the agreement before signing. That lawyer can also arrange for the hand money to be put into escrow until closing occurs.

As long as the prospective buyers are going to finance the house, their bank will organize most of what needs to be done between the sales agreement and the close (inspections, surveys, lien searches, and all other due diligence). If they're going to pay cash, then they will need to get an experienced real estate lawyer to run the process.

[Thr3stripe]

Originally Posted by meanieme

Wow! Thanks for all the great tips.
I think MLS exposure is definitely needed, or else I'm not sure how Realtor agents know about the house other than a handful that scan Zillow.

So hiring an listing agent is good for the exposure of potential buyers they know?
Is that only as good as the network of clients they know?

My suggestion is to give it a go on your own for maybe say 2 months before thinking about potentially hiring a listing agent. I do not believe they increase the exposure whatsoever through their "networks." That's hogwash. Agents of buyers want to find their clients a house asap, so they can make their commission. 99% are found/filtered through an MLS search. I don't believe there's really any incentive for them to "steer" their clients away from FSBOs and towards the listings of their networked associates.

Also, FSBO open houses will get their share of nebby neighbors and such. But so do regular open houses via realtors. Not a big deal in my opinion. It's simply a part of the process. You want traffic. You want to create demand. Do be sure to secure your valuables in safe places during any open houses too.

[TUMF]

We had a house in Acworth, GA that we listed FSBO and it sold in 3 days.
We had an offer in 1, from another buyer, but that was so low balled it wasn't funny...
Serious and desired offer was made day 3.

There are a LOT of reasons for that... Timing. We put our house on the market (on MLS) right before the Thanksgiving holiday. My wife makes Mr. Clean look like a slob. She's EXCESSIVELY clean and keeps her house looking like a model.
When we were moved out and the new owners moved in, the house was spotless and didn't even need a touch up cleaning. They said that it looked like a model home even AFTER we moved out...

Good luck with the sale of your home...

[Brandon Hoffman]

Real estate is easy. You shouldn't need help. Right guys?

[tamajane]

Originally Posted by Bull City Rising

Ditto all of this.

We tried to go the MLS-only, no-Realtor route for our starter house. Lots of nibbles, no bites. The Realtor we hired only changed 3-4 things in what we, ourselves, had done to market the house, but they made all the difference.

What kind of things did the realtor change that made the difference?

[QuilterChick]

Originally Posted by Brandon Hoffman

Real estate is easy. You shouldn't need help. Right guys?

Right Brandon. Piece of cake, anyone with a laptop or an iPad can do it.

[JNR417303]

Originally Posted by CHTransplant

Some buyers are going to see buying a FSBO as a hassle.

This. When we were looking to buy recently we stayed far away from FSBOs. Why deal with someone who enjoys making things more difficult right from the start? They are usually overpriced, emotional and unwilling to negotiate rationally. This is a business transaction, use a professional!

[SomervilleCat]

Originally Posted by JNR417303

This. When we were looking to buy recently we stayed far away from FSBOs. Why deal with someone who enjoys making things more difficult right from the start? They are usually overpriced, emotional and unwilling to negotiate rationally. This is a business transaction, use a professional!

I will echo this statement. I'm a first time buyer and whenever I see FSBO I think it will be a hassle and probably not someone who is serious about selling their house. I'm sure there are many others that feel the same.

[iama30something]

Originally Posted by QuilterChick

Yes, a flat fee agent may help, and will get the listing into MLS. However, if a cooperating broker/agency procures a buyer, they will charge a fee in the 2-3% range. A huge percentage of homes are sold through "co-brokes". So you really are not saving much.

Buyers agents have no prejudice against showing flat fee listings, because they will get paid via the MLS rules as explained in the previous paragraph.

Don't waste more time; get a good flat fee agent, and give it 60 days to see how it works out. Do not shut out the majority of agents who have the expertise and ability to get you to a closing. If you cannot buy another house before you sell this one, you are also at a disadvantage.

Can you recommend a good flat fee agent? I have been trying to find one and some seem a little scammy.

[QuilterChick]

Originally Posted by iama30something

Can you recommend a good flat fee agent? I have been trying to find one and some seem a little scammy.

You need to talk to someone local, in your immediate area. I am over near Asheville. If you do the numbers, you will see that you actually are not saving much at all. You will still have to pay a co-broke agent/office their "half" which is usually 3%. If you pay a flat fee agent less than let's say $1200, you are not saving much at all. (If you absolutely want a cut rate agency, don't do it for more than 45 to 60 days.)

You also need to get the home properly on the market, on MLS. There will be many buyers and retirees heading south this season and through the end of this year. Take advantage of an improving market this spring. After a house has been on the market longer than average time, the listing gets "stale". Everyone who is out there looking will have seen it within the first 3 weeks. After that you have to "refresh" it most likely by lowering the price. A professional agent has been through the selling process hundreds of not thousands of times. Price it to sell, you will have plenty of competition. The best advice I can give you is to think like a buyer.

Make your house the best deal in its price range and location, and you will be ready to move on with the least amount of stress. Remember, there are buyers out there already who have seen everything else in their category, and are waiting for the right one. You will do the same thing.