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Why would you discount it as a FSBO? If you're not hiring an agent to save money, and then sell it for less since you don't have to pay a commission, you've defeated the purpose of not hiring an agent, and in addition you're doing all the work someone else could have been doing.
I'll repeat the question, do you care more about what you spend or what you make?
I wouldn't necessarily discount it the whole amount I'd normally pay in commission, but I'd discount it more than if I am using an agent. I am going to have to hire someone, and I'm not happy about it. They're going to have to really work hard and earn it by bringing a full-price offer, as well as outline what all their marketing plans are to justify $15k in expenses.
RE agents definitely blackball FSBO. My sister experienced it. Was told by a friend of a friend who is a RE. They will steer any FSBO properties their clients have seen and even go as far to lie about the property. That is very common practice she was told. Even if they would get the same commission from a FSBO deal.
My sister also experienced harassment and threats to be sued by a Realtor. Was sent a cease and desist letter by my sisters lawyer who she hired to do the sale.
Last edited by Izzie1213; 06-28-2021 at 02:49 PM..
Someone approaching me directly will likely get that better deal they seek since I'm not paying commission. Once I list it, that goes out that window because I'll have to pass whatever costs I incur on to a buyer. It really doesn't help the situation. All a buyer needs to do is hire a real estate attorney for a few hundred bucks if they're that worried, but it could save them more in the long-run. I feel when you cut out the middle-man, there's an easier way to come to a mutual agreement which benefits both parties, and both can benefit from savings.
I took a real estate course as one of my electives in college and had the instructor not had health issues, I'd have taken appraisal, had enough hours to sit for the exam, got my license, and put it on inactive. I wanted to learn the business anyway. I'm one of those that's willing to learn to do things if I can save myself significant money.
Well, that changes everything. You took a course in real estate in college.
RE definitely blackball FSBO. My sister experienced it. Was told by a friend of a friend who is a RE. They will steer any FSBO properties their clients have seen and even go as far to lie about the property. That is very common practice she was told. Even if they would get the same commission from a FSBO deal.
My sister also experienced harassment and threats to be sued by a Realtor. Was sent a cease and disist letter by my sisters lawyer who she hired to do the sale.
That's why this industry is a racket, and I can't stand it. Those of us with a formal education and a technical degree really have a problem with people that complete an online course, obtain a license, and make the kind of money they do; especially when they can monopolize the industry and steer clients away. It's shady. I am in the wrong line of work, but I could never be a salesperson. I had one job that had sales as part of it, and I always felt like I was screwing people over to make a living. This should be an hourly fee job. A set percentage on a house does not reflect the actual work put into it. I've told this directly to realtors also. It's like being a car salesperson. Sure, sign here; by the way, there's a $799 documentation fee added to your purchase. This industry needs an overhaul.
RE definitely blackball FSBO. My sister experienced it. Was told by a friend of a friend who is a RE. They will steer any FSBO properties their clients have seen and even go as far to lie about the property. That is very common practice she was told. Even if they would get the same commission from a FSBO deal.
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Simply not true. There are be a few bad apples that would do that but they are the exception. It's not the case industry wide. most agents don't even care what their client buys as long as the client is happy and the agent is paid. The truth is FSBO's are poorly marketed and hard to find. When we have a buyer looking, there are lots properties top of mind and in front of us in MLS. Not the case with a FSBO. Most fsbo's think the buyer agents are motivated to find a buyer for their home in hopes of making a sale. The truth is agents want to find a buyer, and from there they'll get paid when the buyer purchases a home regardless of what home it is.
Listing agents that work for the seller try to find buyers for their listings. Buyer agents don't try to find buyers for a home for sale though. Maybe your sister needs some new friends.
Quote:
Originally Posted by Izzie1213
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My sister also experienced harassment and threats to be sued by a Realtor. Was sent a cease and disist letter by my sisters lawyer who she hired to do the sale.
Obviously there are scumbags in every industry, and some FSBO's are scumbags, becuase that's human nature. If you're sister had to deal with one that's unfortunate. However, I'm sure there's more to the story. Care to share?
Most Agents do not "blackball" FSBOs.
Particularly in hot markets with true inventory shortages. Personally, I seek and pursue FSBOs for my buyers.
Much more often, FSBO sellers blackball agents, provoke buyers, and scuttle their sales by not abiding by terms of contracts they sign. And then blame the world for not swarming to overpay for their richly priced and poorly maintained loveshack.
When I go to show a FSBO, I always have copies of the NC Residential Property and Owners Association Statement and the Oil, Gas, and Mineral Rights Disclosure Statement in the car to give them, whether my buyers are interested or not.
Most FSBO sellers who aren't on the MLS have never heard of them and eye me suspiciously when I say they are mandatory in NC.
And, I have NOTHING against FSBOs. Go for it. I just know what I see.
It will definitely help to have it on the MLS and for that you need at least a flat fee realtor. Photos should provide good info and the text description needs to be enticing but not goofy. Try that for a couple weeks and if nothing changes get a good listing agent who’s sold a lot in the area. Good luck.
I've sold just about every possible way there is, and by far, the easiest and quickest was with flat fee brokerages. It gets you an agent who can handle everything for you including the scheduling and paperwork. You can set the buyer's agent commission, I've gone as low as 1.5% and had no hesitation by potential buyers as a result.
While I've done a couple of "straight" FSBOs in my life in good markets, it's SO much easier with a flat fee realtor because of the MLS exposure. I believe that people are still leery of any FSBO and/or homes offered by owners on sites like Zillow, especially if they're not seasoned or first time buyers.
While I understand you're looking to more or less dump this property, selling "as-is", staging can make or break a sale. If it shows poorly no amount of listing or marketing is going help. Even if you furnish it sparsely, it makes a difference. People can visualize their stuff in the house with other stuff in it. That's difficult to do at best when it's empty. I presume it's at least been painted and "freshened" as much as possible?
If you have specific questions about flat fee realtors you're welcome to DM me.
Out here the limited representation listings sell well. People like certainty. When you are on the MLS for the $200 listings, at least agents know you are cooperative. Yes, you wrote that you will cooperate and that the buyer agent fee is negotiable, but when it is on the MLS that fee is set in stone so there is one less thing to negotiate over. For agents like myself that do buyer agency agreements for a minimum fee, I can easily tell my client what they might have to pay me based on the MLS. Since you are offering a negotiation over the fee, I can see some agents thinking that is code for "I'm difficult to deal with" rather than "I'm flexible."
Pay the $200 and get it on the MLS. Make it easy for agents.
That's why this industry is a racket, and I can't stand it. Those of us with a formal education and a technical degree really have a problem with people that complete an online course, obtain a license, and make the kind of money they do; especially when they can monopolize the industry and steer clients away. It's shady. I am in the wrong line of work, but I could never be a salesperson. I had one job that had sales as part of it, and I always felt like I was screwing people over to make a living. This should be an hourly fee job. A set percentage on a house does not reflect the actual work put into it. I've told this directly to realtors also. It's like being a car salesperson. Sure, sign here; by the way, there's a $799 documentation fee added to your purchase. This industry needs an overhaul.
So are you looking for advice or simply somoene to say what you wanted to hear. As soon as a person said what you believed, you took it for truth and will discount or argue against what you don't want to hear?
I mean, I have a college degree. I run a business. I "sell" myself and services to get hired, and then I become a consultant with fiduciary responsibility to my client. I've helped numerous people over the years. Sometimes I get paid for it, sometimes I don't. You want lower fees, have some skin in the game. Risk/reward - I'll work for hourly fees if it's gauranteed. Most people don't want to guarantee our pay so that's why it's commission at closing.
Also, you aren't paying for the time in the transaction. You're paying for the knowledge and experience I have gained from hours and hours of class time and real world experience. When the mechanic changes your oil in 15 minutes, why should it cost $100? I mean, that's $400/hr. The attorney that gets a case dismissed in 30 minutes and charges $5,000 dollars? Did you pay for the 30 minutes or did you pay for the results and years of training and education he went through to get you the desired result? BTW, even if he lost, that attorney still gets paid.
I mean, sorry to be on the soapbox, and I know the industry isn't perfect, but I think there are some other factors you've failed to consider before forming an opinion. Pay or don't pay, it doesn't matter to me. I just don't want you running around bashing the industry on false premises.
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