Selling a home - realtor vs FSBO

[Hoosier]

Wife and I are thinking about selling our house. Bought it a couple years back and now have some extra recurring expenses with the kids, etc. that we didn't count on and are now wishing we would have bought something at a lower price point. Rates are back down again now so tossing around the idea of selling and buying something cheaper/smaller. Trouble is the transactions costs with realtor fees etc. eat up equity so quickly. Considering FSBO and wondering if anyone had any experience with this or advice. My guess is you still have to offer something to the buyer's realtor or no one will look at it. And if you don't get it listed, you don't have the exposure you need to get a good price out of it. So in the end, I'm not sure if it really pays off to not pay a realtor.

I think in the end we'll end up staying where we're at but still daydreaming about freeing up some cash each month. House is in good shape, in good neighborhood in good suburb - shouldn't be hard to move if we go that route.

 

[ezra]

realtors will not show your home unless the buyer finds it and asks for a showing.
find a small realtor company and attempt to negotiate the fee. also most realtors will low ball selling price to u a bit to get a fast ez sale. interview a few and get there 2cents aon what they think they can get.
I work with realtors all the time . polished used car salesman

 

[dawolf]

If you do go FSBO make sure to note that you will work with buyers brokers. Some younger realtors might co-market the home with you for reduced commissions to get their name out there.
Having your house on the market can be a major hassle with showings etc...,
Don't do it half hearted.

Good luck

Doug

 

[highhertel]

I just listed my house with a mid service agency. They have a flat rate of $3,995 and 0% commission if I find a buyer, 1.5% if they find a buyer and 2.5% if another realtor finds a buyer. Full MLS exposure and local advertising, better than a 6% 'full' service agency. I have used these types in the past, always had good experience.

HH

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realtors will not show your home unless the buyer finds it and asks for a showing.
find a small realtor company and attempt to negotiate the fee. also most realtors will low ball selling price to u a bit to get a fast ez sale. interview a few and get there 2cents aon what they think they can get.
I work with realtors all the time . polished used car salesman

Recent selling comps. are a sellers best friend. With decent activity in the existing home market, do your homework and look at comparisons, this will help you determine where your house 'should' be price at. Zillow and Realtor.com are a good starting place.

HH

 

[chunk06]

In a good market, and a desirable house and good price, you can advertise in Papers, Craigslist and State" Principal only" My father has done it in the past with great success. Even with a lawyer writing offer for buyer, and lawyer reviewing offer for you, you're still ahead of the 6% Everything has to work just right for this to work.

 

[skeeter2010]

Not sure where you are located but we sold our house last year with a relator and could not be happier with the choice, that being said I was not happy about closing costs, but I feel the exposure we received was great. We had an offer in 3 days for more money then all the realtors suggested for an asking price. The listing agent had an office within 3 miles of our home and did a walk through with 25 agents one of which sold the home. Our house however was a first time home buyer home and was listed at $169K sold for 166K we had been told by others to list the home at $159 and take anything over $152. We also ended up with significant repairs that needed to be done prior to selling. We had to have the driveway side wall removed and replaced and without the extra money I feel the relator got us we would not have been in a good place. Not to mention all the paperwork with the changes after finding the needed repairs. All I can say is the deadlines and timelines really are key to the contract and I would not have been able to do it correctly without their help.

 

[highhertel]

In a good market, and a desirable house and good price, you can advertise in Papers, Craigslist and State" Principal only" My father has done it in the past with great success. Even with a lawyer writing offer for buyer, and lawyer reviewing offer for you, you're still ahead of the 6% Everything has to work just right for this to work.

The key is to get on the MLS asap. Day 1 for us on MLS, three showings already today.

HH

 

[chunk06]

The key is to get on the MLS asap. Day 1 for us on MLS, three showings already today.

HH

I agree in most cases... Some cases it's best to keep them out of it. BTW I am a licensed broker. I have seen some quick action with traditional advertising. You wouldn't believe how many showings can be for reasons rather than actually trying to sell your home.

 

[chunk06]

Another good case to do a FSBO is if you have a good rural/country property. Just start spreading the word that you're going to be moving....and it will be spoken for in no time.

 

[jr37]

We have sold twice on our own and we are currently buying without a real estate agent. First place sold in 2 days, second one sold in 7 weeks. All we used were ads in the paper, before Craigslist. We have saved $1000s this way, I highly recommend it.

 

[rtrypwr]

As HighHertel said there are some FSBO licensed relators out there that do the flat fee plus a reduced commission. We paid our flat fee and the buyers agent got 2.5%. We used one to sell our house in 2013, excellent experience plus saved us about 5k on our bottom line. Not a huge amount but money in our pocket. We listed at the right time with few others in our price point and had done the right updates for our market and had 13 showings and 4 offers in the first 3 days. Ended up with 2k over asking price.

Market conditions, property/home/location, and amount of buyers are going to determine your ability to sell more than anything...

 

[ezra]

and I would think about getting a hoe inspection before u list. do them all the time for people getting prepped to sell. it gives u the time to go through fix the stuff that is found at your pace with time to shop around for a deal. or don't and rush around at the last second trying to find guys to get it done who know u are in a pinch chaa ching.
negotiate with your inspector to come back when done for say 50 or 75 or so and amend the inspection so potential buyers can take a peek when thinking about the home. it will make them more confident when making that offer.

 

[polarisrider1]

I buy from fsbo (they usually have no clue of the true value and sell to low). I use a realtor friend to lock the seller in. I always sell with a realtor and get top dollar. The realtor sorts the prospects for you. Key is finding a realtor who likes what they do. My best house purchases are the fsbo who market on a paper plate. Yes a paper plate and a black marker "for sale" sign.

 

[chunk06]

and I would think about getting a hoe inspection before u list. do them all the time for people getting prepped to sell. it gives u the time to go through fix the stuff that is found at your pace with time to shop around for a deal. or don't and rush around at the last second trying to find guys to get it done who know u are in a pinch chaa ching.
negotiate with your inspector to come back when done for say 50 or 75 or so and amend the inspection so potential buyers can take a peek when thinking about the home. it will make them more confident when making that offer.

Good thing to do, Keeps the buyer from using an inspection report as an extortion tool. I have been in on a few that have gone like, Of course with some deals they will still insist on getting their own. I always like to get my own septic and well test and recommend the same for buyers. most of the home inspectors around here are jokes.

 

[ezra]

most of the home inspectors around here are jokes.

most everyplace are a joke really a sad deal .I took the ahit class some yrs back oh how underwhelming that was. then u give your paying customer a complete report with piles of issues and the agent gets pissy that u trashed there deal and don't call u again. be cautious of a inspector your agent recommends.
I don't do many only for existing customers but mainly for the investors I work with.

 

[chunk06]

most everyplace are a joke really a sad deal .I took the ahit class some yrs back oh how underwhelming that was. then u give your paying customer a complete report with piles of issues and the agent gets pissy that u trashed there deal and don't call u again. be cautious of a inspector your agent recommends.
I don't do many only for existing customers but mainly for the investors I work with.

I looked into the classes as well, thought it would be a good gig for me part time, I would not be able to handle it. Being an agent your not supposed to give any advice on issues or condition of the home, really is a screwed up deal. Anyone that really knows houses could pick apart most houses on an inspection report built before the 60's that would make most run. Had a home inspector unplug some wires in the furnace for an agent last year, called me up and said the furnace was shot and recommended a good HVAC guy lol! I could hear the fear in their voice over the phone when I had the furnace going a half hour after they called. Crooks everywhere.

 

[Hoosier]

Appreciate all the input. Lots of smart people on this site...must need to know something to bankroll sledding I guess...

I'm hoping we can make the house work as opposed to down sizing, but I like to consider the options. Basically we bought too much house a couple years back and have young kids and it will be about 2 years before my wife is back in the workforce, part time at least. I'm usually slow to take on new expenses but with the family involved I wasn't thinking everything through like I should have. The costs of selling a house probably outweigh what we will save over the next several years, but it would be nice to cut back that monthly payment in the meantime.

 

[polarisrider1]

Appreciate all the input. Lots of smart people on this site...must need to know something to bankroll sledding I guess...

I'm hoping we can make the house work as opposed to down sizing, but I like to consider the options. Basically we bought too much house a couple years back and have young kids and it will be about 2 years before my wife is back in the workforce, part time at least. I'm usually slow to take on new expenses but with the family involved I wasn't thinking everything through like I should have. The costs of selling a house probably outweigh what we will save over the next several years, but it would be nice to cut back that monthly payment in the meantime.

Get it appraised. Talk to a couple realtor
Find out where your sitting as far as equity if any. Nothing worse then if a house "owns" you.