My family and I are going to move back to Southern WI closer to family from the Quad Cities in ILLinois. I want to know what kind of luck you all have had selling your home in the market we are in now. I need to make the most money BUT need to sell fast. I know I know a rock and a hard place. Realtor's want 7% split wowsers. Help me with my first time seller fears!
FSBO or Realtor?
- Thread starter local897
- Start date
I have sold 2 places on our own. Not in this market, one was 5 years ago and one was 7. Sold one in 1 day, and the other in 7 weeks. Saved a ton on realtor commision. My dad used to sell real estate, so I got some info from him, and an attorney to draw up the offer papers.
I would definately try it again. If after a certain amount of time, you can always list it with a realtor. Just try saving the money first by trying it on your own.
I would definately try it again. If after a certain amount of time, you can always list it with a realtor. Just try saving the money first by trying it on your own.
Negotiate the rate, most will do 5% now, and some even less. There is a lot of inventory out there, they can afford to list it for less than 7%.
If you go it alone you can get a lot of free adivice. Your banker will understand the process and ask any potential buyer to "present" you with their offer. Then allow your attorney to review the offer, with you, to determine if it's agreeable. Also, use craigslist to showcase your home and re-post it many times. Good luck and post if you have any other questions. I've been through the process many times.
FSBO is not as complicated as you think. Talk to a local title company to handle the transaction and inquire about a FSBO package. Alot of them have them available at no cost and are very helpful.
Also, advertise like crazy. craigslist, zillow and forsalebyowner.com are all good places to start.
If you have no luck after a period of time them contact a realtor. Some will actually provide limited, but helpful, services for as low as 2%.
Good luck!
Dave
Also, advertise like crazy. craigslist, zillow and forsalebyowner.com are all good places to start.
If you have no luck after a period of time them contact a realtor. Some will actually provide limited, but helpful, services for as low as 2%.
Good luck!
Dave
If you can get on zillow you are all set. Don't know why they hit you for 7% when 6% is the going rate? The Realtor position IMO may go the way of the travel agent as people find more alternatives to MLS. If you want to sell quickly get an appraisal & discount 15% no one is going to argue with that price. Check with your bank they might let you go short & walk away but will hurt your credit rating & rent on the other end. Selling quick is an oxymoron just does not happen in this market.
anonomoose
New member
Who doesn't have an opinion on this one?
NORMALLY there is not much harm in trying on your own, but this market is NOT the market of old. So do you fell lucky, punk...well do yah??
Unlike in the past, pricing isn't as important as the product, location, competition, and .....TIMING....of the year and market conditions.
An appraisal could be way off as much as 40%...an amazing number. So how do you decide where to market your home ?
For that matter, how do you decide on a broker? They are not all created equal either. If you are in a small town, your choices might not be very good, and you could waste more time than you want with one that promises the moon, but delivers little.
This question reminds me of the TV commercial a bit ago, where the surgeon was taking the patient thru surgery, and the end statement was "shouldn't YOU be doing this?
If you are "out of time" this pretty much spells Broker. You do not have learning curve, or time to "experiment" so you should get an expert who can cut to the chase and get the job done....if it can even be done within the window you have set for yourself.
A broker who is experienced, should know about your drawbacks with regard to the above....competition, problems with your home, and more. He should also know what type of financing will work for you, where to get an appraisal what about home inspections, previewing title work, estimation of proceeds which is helpful for YOU on the next purchase.
There is nothing more pathetic than a seller who's deal went south 4 weeks into the transaction because he was trying to save a few bucks. Which reminds me....once you pay to have an attorney review, assist in a Purchase offer, and go to a closing...you just gave back a bunch of money...all unnecessary if you have a good broker.
If you are in a hurry, this is NO time to cut the commission that in all likelihood will be split with a cooperative broker....in fact doing so puts you at a disadvantage....which house would YOU sell first --the one with a full commission, or the one with the lowest commission? Certainly the buyer can decide, but there is nothing that a broker in the multiple listing service likes less than to sell and make even less money on the product that was NOT that much better than others that he would make full commissions on...right? It is pure economics.
Doing all this on your own, having never done this before, puts this in the realm of finding gold nuggets in the backyard.
Can you do it...of course....is it likely? Well, let's just say that you won't be making your wife very happy if things become a learning curve rather than a move that is do-able.
The big kahuna in the biz is the MLS....it is the tool of choice, and comparisons are all about comparisons....it is the bible for brokers. If you want to ignore that, you can, but are you really doing all you could do in a tough market to get the job done by avoiding the biggest marketing mechanism available to home buyers?
So despite the above you figure...hey, 7% is a bunch...I am going to swing away and see what happens.
Don't go cheap....advertise, run open houses, get a mortgage person to run sheets that show "what-ifs" for payments, get a purchase agreement filled out ready for a purchaser to fill in at the moment they decide ....strike while the skillet is hot.....get them on the dotted line with deposit...before they change their minds.
Then limit the duration so that you can get on the broker wagon before it is too late. Say 10 days, 2 weeks....if it doesn't happen, get rolling and bite the bullet.
So how do you pick out a broker?
Interview, 5 brokers before deciding. One will stand out....if you are really lucky and did your own due diligence, you might get two to chose from.
Ask questions...lots of them. Separate the hype about "how big the brokerage is" or how national they are....you are tied to THAT broker in THAT town with HIS reputation, and knowledge base. Who does he recommend for financing....what happens if the appraisal falls thru...what is his plan of action. Open houses...when, how long, and dates. Advertising, where when and how often...get it in writing...let's see a copy of what it would look like.
There is NO substitute for experience in that business. If you don't know what you are doing, or do it part time, (will your broker be doing something else to survive...when he should be in the office or drumming up clients so he can sell your home?) it can cost you.
Go the the mattresses....this is HUGE in picking a broker. Take ALL recommendations with a cube of salt....a broker that was great 3 years ago, might be coasting along now...or dabbling in Amway, or cosmetics. Not what you want to hear.
Finally resist long term listings. Every broker wants as long as he can get. At this time of year, you have little time before the selling season closes. Keep that in mind. Establish the fact that a short 45 day listing will be renewed if you are happy with his efforts....and can be ended at that point if you have been sold a bill of goods.
Find and promote your own listing no matter what you decide. Get permission to put it in Craig's list, post on ebay, get it into as many free pubs as you can...offer to protect any and all brokers with their commissions. Even consider a bonus of a grand or two to get the job done within a set period of time. "IF closed by ....., $1,500 bonus to Selling broker." Consider aiding a buyer with payment of some of HIS closing costs....it can tip the scales toward sold.
Then do your part to keep the place show-able, get a storage place to put all that junk cluttering up the garage and play room, stage the place so it looks so good, you would consider buying it yourself if you didn't own it. Fix that door knob, and wash that patio off....paint that peeling gutter.....offer an extended warranty so that the buyer feels good about entering into a transaction.....this is a no holds barred game...you want to win....and get it past....
Finally remember that the biggest problem is getting rid of what you have, being approved for another mortgage and getting another appraisal thru on whatever you are trying to buy without having all this go foul on yah. You can afford to give up some on the front side if you get a smokin hot deal on the backside....so remember like trading in your car...it matters little on what you have to pay for the new one, if they sock you hard on your old one. Your interested in the DIFFERENCE of the two...that's what counts. So naturally you need to be looking and finding what is out there for YOU where you want to go...so you can make that judgment call, if and when you get a buyer.
Okay...class dismissed...quiz on Friday....don't forget your term paper is due in 3 weeks...and don't plagiarize front the web...you know you can't believe HALF OF WHAT YOU READ THERE.....and failing is NOT an option.
NORMALLY there is not much harm in trying on your own, but this market is NOT the market of old. So do you fell lucky, punk...well do yah??
Unlike in the past, pricing isn't as important as the product, location, competition, and .....TIMING....of the year and market conditions.
An appraisal could be way off as much as 40%...an amazing number. So how do you decide where to market your home ?
For that matter, how do you decide on a broker? They are not all created equal either. If you are in a small town, your choices might not be very good, and you could waste more time than you want with one that promises the moon, but delivers little.
This question reminds me of the TV commercial a bit ago, where the surgeon was taking the patient thru surgery, and the end statement was "shouldn't YOU be doing this?
If you are "out of time" this pretty much spells Broker. You do not have learning curve, or time to "experiment" so you should get an expert who can cut to the chase and get the job done....if it can even be done within the window you have set for yourself.
A broker who is experienced, should know about your drawbacks with regard to the above....competition, problems with your home, and more. He should also know what type of financing will work for you, where to get an appraisal what about home inspections, previewing title work, estimation of proceeds which is helpful for YOU on the next purchase.
There is nothing more pathetic than a seller who's deal went south 4 weeks into the transaction because he was trying to save a few bucks. Which reminds me....once you pay to have an attorney review, assist in a Purchase offer, and go to a closing...you just gave back a bunch of money...all unnecessary if you have a good broker.
If you are in a hurry, this is NO time to cut the commission that in all likelihood will be split with a cooperative broker....in fact doing so puts you at a disadvantage....which house would YOU sell first --the one with a full commission, or the one with the lowest commission? Certainly the buyer can decide, but there is nothing that a broker in the multiple listing service likes less than to sell and make even less money on the product that was NOT that much better than others that he would make full commissions on...right? It is pure economics.
Doing all this on your own, having never done this before, puts this in the realm of finding gold nuggets in the backyard.
Can you do it...of course....is it likely? Well, let's just say that you won't be making your wife very happy if things become a learning curve rather than a move that is do-able.
The big kahuna in the biz is the MLS....it is the tool of choice, and comparisons are all about comparisons....it is the bible for brokers. If you want to ignore that, you can, but are you really doing all you could do in a tough market to get the job done by avoiding the biggest marketing mechanism available to home buyers?
So despite the above you figure...hey, 7% is a bunch...I am going to swing away and see what happens.
Don't go cheap....advertise, run open houses, get a mortgage person to run sheets that show "what-ifs" for payments, get a purchase agreement filled out ready for a purchaser to fill in at the moment they decide ....strike while the skillet is hot.....get them on the dotted line with deposit...before they change their minds.
Then limit the duration so that you can get on the broker wagon before it is too late. Say 10 days, 2 weeks....if it doesn't happen, get rolling and bite the bullet.
So how do you pick out a broker?
Interview, 5 brokers before deciding. One will stand out....if you are really lucky and did your own due diligence, you might get two to chose from.
Ask questions...lots of them. Separate the hype about "how big the brokerage is" or how national they are....you are tied to THAT broker in THAT town with HIS reputation, and knowledge base. Who does he recommend for financing....what happens if the appraisal falls thru...what is his plan of action. Open houses...when, how long, and dates. Advertising, where when and how often...get it in writing...let's see a copy of what it would look like.
There is NO substitute for experience in that business. If you don't know what you are doing, or do it part time, (will your broker be doing something else to survive...when he should be in the office or drumming up clients so he can sell your home?) it can cost you.
Go the the mattresses....this is HUGE in picking a broker. Take ALL recommendations with a cube of salt....a broker that was great 3 years ago, might be coasting along now...or dabbling in Amway, or cosmetics. Not what you want to hear.
Finally resist long term listings. Every broker wants as long as he can get. At this time of year, you have little time before the selling season closes. Keep that in mind. Establish the fact that a short 45 day listing will be renewed if you are happy with his efforts....and can be ended at that point if you have been sold a bill of goods.
Find and promote your own listing no matter what you decide. Get permission to put it in Craig's list, post on ebay, get it into as many free pubs as you can...offer to protect any and all brokers with their commissions. Even consider a bonus of a grand or two to get the job done within a set period of time. "IF closed by ....., $1,500 bonus to Selling broker." Consider aiding a buyer with payment of some of HIS closing costs....it can tip the scales toward sold.
Then do your part to keep the place show-able, get a storage place to put all that junk cluttering up the garage and play room, stage the place so it looks so good, you would consider buying it yourself if you didn't own it. Fix that door knob, and wash that patio off....paint that peeling gutter.....offer an extended warranty so that the buyer feels good about entering into a transaction.....this is a no holds barred game...you want to win....and get it past....
Finally remember that the biggest problem is getting rid of what you have, being approved for another mortgage and getting another appraisal thru on whatever you are trying to buy without having all this go foul on yah. You can afford to give up some on the front side if you get a smokin hot deal on the backside....so remember like trading in your car...it matters little on what you have to pay for the new one, if they sock you hard on your old one. Your interested in the DIFFERENCE of the two...that's what counts. So naturally you need to be looking and finding what is out there for YOU where you want to go...so you can make that judgment call, if and when you get a buyer.
Okay...class dismissed...quiz on Friday....don't forget your term paper is due in 3 weeks...and don't plagiarize front the web...you know you can't believe HALF OF WHAT YOU READ THERE.....and failing is NOT an option.
All good points.
Price really has nothing to do with sales these days (At least in most cases). People are going to make an offer, of what it is worth to them, regardless of what you think its worth. Getting it close to the market helps, but not going to make the sale.
I have a co-worker who sold her house in 6 days, yes, SIX DAYS. My house has been on the market for going on 4 YEARS, without so much as an offer. I've had 4 showings in that time. The only difference is my house is out in the country, 13 miles from town, and hers was 2 miles from town. Virtually same sized house and price.
Location location location. Find someone willing to be where your house is now, and it will sell in little to no time. Finding that someone is the challenge.
Price really has nothing to do with sales these days (At least in most cases). People are going to make an offer, of what it is worth to them, regardless of what you think its worth. Getting it close to the market helps, but not going to make the sale.
I have a co-worker who sold her house in 6 days, yes, SIX DAYS. My house has been on the market for going on 4 YEARS, without so much as an offer. I've had 4 showings in that time. The only difference is my house is out in the country, 13 miles from town, and hers was 2 miles from town. Virtually same sized house and price.
Location location location. Find someone willing to be where your house is now, and it will sell in little to no time. Finding that someone is the challenge.
anonomoose
New member
You just might be timing the market better than you think? Timing is EVERYTHING.....
http://money.cnn.com/2011/08/03/real_estate/mortgage_rates_freefall/index.htm
http://money.cnn.com/2011/08/03/real_estate/mortgage_rates_freefall/index.htm
I sold my old house by owner back in 2002. My attorney told me what to do and what papers were needed. I put up some bright pink poster boards that said open house by all the busy streets nearby with others leading the way to my house. "On a sunday" I could not believe how many people came by to look. Also had many realtors stoping in with their clients. Sold house in 1 week. I know maybe better time back then but worth a shot today.
cuzzinolaf
Active member
Find a realtor that will list it as a Flat Fee. You basically do the listing yourself, take the pictures, etc., and then they list it in the MLS and realtor.com for you. You'll only have to pay the percentage of the selling agent if in fact sold by an agent. I sold my house this way last year when everyone said it wouldn't. Look into it.
Have you got any friends / acquaintances that are realtors? We've been succesful with using a friend in the past and worked out a deal that he wouldln't take any cut on the sale of our house (except admin costs), so long as we stuck with him on the purchase of the new house where he'd get his full split. All in all, we ended up paying the buying agent of our house 3% on the sale.
Taking commissons below 6% can back fire as other Realtors will pass on your listing not enough for a split & plenty of other inventory to sell at 6%. I think FSBO & Realtor probably the best way to go if the Realtor will agree to this arrangement but the arrangement undercuts him. If your property is in the Jumbo loan market good luck banks are very hard on those & will press hard on the appraisal. Appraiser is King now & screwed up 16% of sales last month bringing in lower appraisals than the buyer & seller agreed contracts. The market used to define price not anymore Appraiser controls price & lots of new laws banks & Appraiser must follow & will get even worse with new fed laws waiting to be voted in as law. Thanks for nothing Obama we really don't need your help! The Realtor can be helpful in determining listing price by showing you current sales in your neigborhood that Appraisers are sure to include in their appraisal of your house. Hopefully you bought 10+ years ago so you don't have to take a severe haircut but a haircut none the less due to foreclosues & shorts.
I used this option too last year. For a flat fee of $1000 my realtor handled everything (including showings). I did pay the buying agent a 3% commission though (despite what realtors say about working for the buyer, they tend to spend more time looking at houses that have a commission tied to them than one that doesn't).
In this market it is definitely hard to justify an agent. Do they provide value worth 6% to anyone? Not really, with sites like realtor.com and zillow.com everyday buyers have too many resources to have to depend on a realtor.
If you list it yourself, the only thing you need to do is make sure you get an MLS number, that will get your house out there in the view. Also I would highly recommend having a buyer agent commission on your listing to encourage agents to show perspective buyers your house.
Good luck!
anonomoose
New member
Spunk's idea is a good one, as it is much easier to buy than to sell right now.
And Dusty is right, appraisal is king. Banks have their "preferred" appraisers who they more or less control. There are large banking entities that don't really want loans in regines of the country and use the appraisal to steer thru muddy waters. I have heard of appraisals getting --kicked back-- several times until the number is where the "bank wants to go"....and while you can not shop for appraisals, you can go to another finance company who has their own pile of appraisers they feed, and get the very same product appraised for tens of thousands more when the first attempt which was well below that number. This is good for the bank....as they take less chance with a lower mortgage, but usually bad for the Seller, and therefore bad for the Buyer.
The Real Estate business has taken some major changes as to how you do business, and as Dusty says, once "new laws" take effect, which will control this business even more, it will get harder and harder to get a loan thru. The only thing a bank hates is another bank who cuts across red tape and hands out a loan that they would decline. Makes them look bad....so a law will force ALL banks to conform to new regs that will stop that free enterprise process. Don't yah love it???
And Dusty is right, appraisal is king. Banks have their "preferred" appraisers who they more or less control. There are large banking entities that don't really want loans in regines of the country and use the appraisal to steer thru muddy waters. I have heard of appraisals getting --kicked back-- several times until the number is where the "bank wants to go"....and while you can not shop for appraisals, you can go to another finance company who has their own pile of appraisers they feed, and get the very same product appraised for tens of thousands more when the first attempt which was well below that number. This is good for the bank....as they take less chance with a lower mortgage, but usually bad for the Seller, and therefore bad for the Buyer.
The Real Estate business has taken some major changes as to how you do business, and as Dusty says, once "new laws" take effect, which will control this business even more, it will get harder and harder to get a loan thru. The only thing a bank hates is another bank who cuts across red tape and hands out a loan that they would decline. Makes them look bad....so a law will force ALL banks to conform to new regs that will stop that free enterprise process. Don't yah love it???
Getting the Appraisal value YOU want has been going on for decades. The realtors and brokers assure this happens. One big reason to use one in my opinion. If the buyer is qualified, has the money, and wants to spend it, the appraisal will fit the sale.
Very, VERY, few sales don't happen because of the appraisal.
That was the not so old days.
As of January 2010, a new law was implemented called HVCC (Home Value Code of Conduct) Basically, this means that appraisers are required to have complete independence when it comes to a mortage transaction and completing the appraisal report. Appraisals are ordered through an indepndent Appraisal Management Company who farms the order out. The appraisal then must pass the companies quality control review before release.
What this is doing is causing appraisers to become very conservative in their determination of value. They depend on the Management Company for work and to not want to get black listed. This has slowed the housing recovery more than you would believe and has killed many purchase transactions between a buyer willing to pay a certain price, a seller agreeing to that price and an appraiser who determines that the price agreed on by all parties is too high for the market.
Trust me, I live it everyday and, until this goes away and appraisers feel free to give true value to a property without fear of recourse, the housing market will be in shambles.
Dave
I was not aware of that and I can see where that would be a pain in the arse.
IMO, appraisals are not what got the housing market in trouble. Giving loans to people who really have no clue as to what they can afford is what got us in this mess.
Appraisals had a big part in what happened. Many houses were never worth what they were allowed to sell for. And all the screwy financing etc, etc. There are many reasons it happened. But overvaluing is definately one.
Unforchanately if you try building something new. Your value is lowered because there of tons of foreclosured houses around it. Your bare costs to build new - may not be below the appraised value in todays market. Many areas that is the case, nothing new can be built that appraise high enough.
But the fact is those houses are there and they will be your competition if you suddenly decide to sell your place.
Like it or not appraisal process had to be changed, just because it costs $XXX to build - doesn't make it worth that today. Appraisers can't let builders and banks tell them what something is worth, which is what they were doing.
Sucks for me too, cause I'm in the home design business.
Unforchanately if you try building something new. Your value is lowered because there of tons of foreclosured houses around it. Your bare costs to build new - may not be below the appraised value in todays market. Many areas that is the case, nothing new can be built that appraise high enough.
But the fact is those houses are there and they will be your competition if you suddenly decide to sell your place.
Like it or not appraisal process had to be changed, just because it costs $XXX to build - doesn't make it worth that today. Appraisers can't let builders and banks tell them what something is worth, which is what they were doing.
Sucks for me too, cause I'm in the home design business.
Complete disconnect between Appraiser & Realor is the new norm & in fact low appraisals are now killing buyer & seller contracts. The market defines price not an ultraconservative Appraiser that has to please the bank but that method is broken now. Soooooooooooooo many problems with stocks, bonds, realestate & national debt hang on for the ruff ride no help in sight.
