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Due to the hot market, combined with the thought of paying at least $15k in realtor fees, I have my house FSBO. I have it on Zillow and about 10 Facebook Marketplace real estate groups. I had a couple agents show it, 1 low offer, but they backed out (long story--wasn't worried about major items on the home inspection but still backed out over the minor ones as their offer was contingent upon it), a 2nd low offer we flat out refused, and I've shown it twice myself. I have a survey, current home inspection, multiple photos, 3D tour on Zillow, etc. I've also done most of the work, even having a lockbox on the house for agents to show it, if they desire. I've fixed some of the items on the inspection, but it's an old house, and we are selling as-is. The location is very desirable. A comparable house sat on the market 2.5 months, but finally is under contract for a respectable amount.
It's been on the market 3 weeks. I dropped the price 2.9% after 2 weeks. I haven't yet purchased a flat-fee MLS. I'm wondering if I'm just going to have to throw in the towel and pay the ungodly commission. I've shopped around realtors, and I'm told my price is right on target by one broker who I might use. If I go with an agent, I'm going to have to accept an offer at or very near asking price to pass along those fees to the buyer.
We just purchased our current house FSBO. (Some relatives knew the people). It was a piece of cake. I know there's been multiple threads with this huge debate on how realtors don't earn their fee with huge backlash from agents on here. I get it. They're defending their livelihood. I personally don't think it's anywhere worth what I'll pay. It wasn't when I sold my last house---it was quite disgusting what I received in turn for what I paid. I just look at it like this: $15k invested in my kid's college account in an aggressive growth fund at 7% is over $50k in 18 years. The thought of spending that for fees is nauseating; especially when I prepare contracts as part of my job. I guess I went into the wrong line of work. Anyway, I suppose I could just sit on it longer. My ad states that I'm willing to work with a buyer's agent--commission negotiable. I'd rather just pay someone a flat fee of $1k-3k to handle it; that's about all it's worth workwise. The house will sell itself when the correct buyer comes along, and I've done all the other due diligence.
Anything else I can do to avoid an agent? We have already moved, so the house is empty, and showing it after work has worked out well for my schedule, as well as prospective buyers so far. Is the flat-fee MLS worth it for the $150-300 and does it drive in that much more traffic?
"I personally don't think it's anywhere worth what I'll pay. The thought of spending that for fees is nauseating; "
Take some Pepto Bismo. Also, houses generally sell better with some furniture in them. It helps potential buyers envision the purpose and usage of the space. A completely empty house can look unwanted. That's the difference between a house and a home.
My agent sold my house last winter, full ask, same day as listed. I paid for his advice. Was it "worth" it? To me, yes. I didn't want to deal with potential buyers or lookie loos. He provided excellent advice about dealing with the buyer about an inspection issue. My time is valuable to me. I also hired a real estate attorney. I believe that a true professional makes his job look easy; that's why everyone thinks they can do it. Some can; most can't.
There are many things for which I'll pay a professional. I don't change the oil in my car; I don't mow my lawn; I don't groom the dog; I don't give myself manis and pedis; I don't wash the windows in my house; I don't shovel snow;
I pay to make my life safer and easier.
Everyone has to determine the value of their time and energy compared with the value of a dollar.
The problem with your FSBO listing is that you wont get market value for it, you don't know how to market it, you don't know the legals involved and you wont know how to get through the transaction - especially when there's an issue.
Furthermore, just like you expect to "save the commission", so does the buyer. So you are now asking the buyer to compensate their own broker ( who will now have to do the work of two agents since you don't have one)... Or for the buyer to go without representation - and then you have two people without a clue trying to get through a real estate transaction. These are not attractive options for the buyer. This is why you're having trouble, and will ultimately sell for less than you would have with a Realtor, and you will have a difficult time getting through the transaction should you successfully find a buyer.
You've already taken a reduction for about half the amount you would have paid to have this handled professionally, and your next reduction pays the whole...and you'll still be exactly where you are now. Struggling.
Tell me again how you are saving money going FSBO?
A lot of people won't look at FSBOs regardless of your "buyer's agents welcome" line....don't blame the agents you didn't hire. They aren't blackballing you, in general FSBO sellers have blackballed themselves.
The problem with your FSBO listing is that you wont get market value for it, you don't know how to market it, you don't know the legals involved and you wont know how to get through the transaction - especially when there's an issue.
Furthermore, just like you expect to "save the commission", so does the buyer. So you are now asking the buyer to compensate their own broker ( who will now have to do the work of two agents since you don't have one)... Or for the buyer to go without representation - and then you have two people without a clue trying to get through a real estate transaction. These are not attractive options for the buyer. This is why you're having trouble, and will ultimately sell for less than you would have with a Realtor, and you will have a difficult time getting through the transaction should you successfully find a buyer.
You've already taken a reduction for about half the amount you would have paid to have this handled professionally, and your next reduction pays the whole...and you'll still be exactly where you are now. Struggling.
Tell me again how you are saving money going FSBO?
I will most likely list it within a week or 2 and will take offers only close to the asking price to compensate for the fees; even if it takes a little longer. I had to do that with my last house. The agent kept pushing me to consider lower offers (so she could get paid and move on); but I held on for what I wanted and got it. I paid over 8 grand for her to throw it up on the MLS, put a lockbox on the house so others could show it, answer some phone calls, and clicked a few lines on a Dotloop contract.
For our current house, we used a state uniform standard residential contract, sent it to the bank and title copmany; it's not difficult. I do large multi-million dollar contracts for work. Realtors use a similar boiler plate template. The title company does most of the work anyway and the fees are significantly less than realtor commissions. It's the fact that buyers feel more comfortable with a realtor; therefore, it's going to cost me money. With a little research, most intelligent people can do it. I want to know what they're going to do to justify $15k+ in fees. It's just a racket industry, and unfortunately, you have to play the game. I even went straight to a top broker in my area, bypassing regular agents, to try to work a deal. I'm looking for less than 5% since most of the work I've already done. I'll do a lot of work to save $15k. We're not talking about saving 50 bucks to have someone else change the oil in my car.
First of all, there is no boycott. I currently have 2 fsbo's under contract. If you aren't getting calls, you have exposure issues. A good listing agent fixes that. You've hired a rookie that doens't know anything about real estate (yourself). Do you care more about the commission you pay or what you walk away with? (the answer should be your bottom line matters more than the expenses)
You're probably going to pay a buyer agent, so really the discussion is about half a commission for a good listing agent. It's quite possible a good listing agent can create a bidding war or negotiate the money right now justify the $7500 expense, and they take the work and stress off of you. Really, it's impossible to know for sure, so you just have to make the decision that's best for you.
I'm not telling you that you need or don't need an agent. Are you willing to learn on the job and maybe save a few bucks, or is better to just hire someone to do it for you? It's why I pay professional contractors even on things I could do myself. They save my time, and frankly do a better job than I could. (landscapers, painters, car mechanics, etc)
Last edited by Brandon Hoffman; 06-28-2021 at 01:43 PM..
Someone self listing is a huge red flag to me. Hard pass. Nothing against you personally, but it sounds like a lot of work.
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.
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.
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?
The problem with your FSBO listing is that you wont get market value for it, you don't know how to market it, you don't know the legals involved and you wont know how to get through the transaction - especially when there's an issue. ....
Tell me again how you are saving money going FSBO?
You can't say that with certainty. We don't know that a fsbo will or won't get market value. Some of them do, some don't get market value. Some FSBO's do know that process and are easy, some aren't. I can say the same about agents, that some are good and some aren't. Unless you can see the future, that's simply not a statement we can make.
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