FSBO or Realtor (1 Viewer)

[th3f00l]

We've had our house on the market by owner for about a month and haven't gotten anything. We just bought it a year ago. We had been planning on sticking around a few more years, but my wife stepped out of her PHD program early with a Masters. I just got fired from my job as well as 5 other mangers that opened this store (the company is expanding and bringing in a bunch of people from the new managing partner's old company). We are ready to get out of Michigan and move back near my family in Austin.

The question is, does anyone have experience selling their house by owner? Can you sell it for more with a realtor? We are trying to hedge our losses, but we met with a realtor today who is convinced she can get us more for the house than we are currently asking (which would more than cover her commission).

 

[meatwad1]

There are hybrid companies out there that will advertise your house but have you sell it. That is the way to go.

If you want to get out right away, price it lower than you think it should be. It also probably stands to reason that you should tell us what the price of the house is because that actually matters.

 

[jon_mx]

We've had our house on the market by owner for about a month and haven't gotten anything. We just bought it a year ago. We had been planning on sticking around a few more years, but my wife stepped out of her PHD program early with a Masters. I just got fired from my job as well as 5 other mangers that opened this store (the company is expanding and bringing in a bunch of people from the new managing partner's old company). We are ready to get out of Michigan and move back near my family in Austin.

The question is, does anyone have experience selling their house by owner? Can you sell it for more with a realtor? We are trying to hedge our losses, but we met with a realtor today who is convinced she can get us more for the house than we are currently asking (which would more than cover her commission).

That is pretty much the standard line from a Realtor. There is a grain of truth to it. If you are desperate to sell, which it sounds like you are, a Realtor is going to give your house far more exposure. Just kind of a crappy time to be trying to sell a home.

 

[johnnycakes]

I sold my dad's house FSBO but when I made the MLS listing I said I would pay a buyer's broker 2.5%, so I only saved half the commission, but every potential buyer I had came with a realtor. If I hadn't have paid the 2.5% I doubt many buyers would have even seen it.

 

[kutta]

Hire a professional.

 

[Patrick Bateman]

Get it in the MLS. Pay the buyers agent. If it's priced right, you'll sell it.

 

[jon_mx]

Hire a professional.

He should, but calling a Realtor a professional is going overboard.

 

[skillz]

I sold my dad's house FSBO but when I made the MLS listing I said I would pay a buyer's broker 2.5%, so I only saved half the commission, but every potential buyer I had came with a realtor. If I hadn't have paid the 2.5% I doubt many buyers would have even seen it.

This. I just sold mine in Michigan in six weeks by owner. The MLS listing was key and I also offered the buyer's agent 3%. Got lots of exposure and realtors showed my house since they were getting a 3% cut on the sale. I still saved thousands by pocketing the other 3%.

As long as you can take good pics, keep your house clean for showings and list the house based on comparables in your area you are all good.

 

[mr roboto]

Research flat fee listing services. Gets you in MLS. And advertise that you pay the buyer commission.

 

[bushdocda]

Good luck.

You'll open up your market with an agent.

 

[Patrick Bateman]

Good luck.

You'll open up your market with an agent.

Nah. This is agent speak. They think an awful lot of themselves. Unscrupulous agents will steer their clients away from fsbo. That's why they have a bad rep as an ahem...profession. A good buyers agent will look out for the best interest of his buyer when they are interested in a fsbo. They are out there. No one, is worth 6 or 7 percent of the value of your home. No one.

 

[chauncey]

How much does the real estate agent see of that 2.5-3%? On a $500k sale are they getting $12-15k or does their broker take a % of that? Assuming the agent is netting 5-6 figures on a commission I can see why they wouldn't f with most fsbos. Makes a lot of sense to still pay the buyer's agent if selling yourself.

 

[Patrick Bateman]

How much does the real estate agent see of that 2.5-3%? On a $500k sale are they getting $12-15k or does their broker take a % of that? Assuming the agent is netting 5-6 figures on a commission I can see why they wouldn't f with most fsbos. Makes a lot of sense to still pay the buyer's agent if selling yourself.

Simple math. Realtors are convinced that they deserve their egregious comission no matter what. Realtors don't sell homes. A properly priced property will sell itself. No realtor needed.

 

[th3f00l]

Thanks for all the responses, this is very helpful.

There are hybrid companies out there that will advertise your house but have you sell it. That is the way to go.

If you want to get out right away, price it lower than you think it should be. It also probably stands to reason that you should tell us what the price of the house is because that actually matters.

The house is listed for $165K, which is what two other agents we consulted a month ago suggested. This agent recommended $171K, based on a house 2 doors down just hitting the market for $173K and a couple of houses that sold in our neighborhood in the past month.

I sold my dad's house FSBO but when I made the MLS listing I said I would pay a buyer's broker 2.5%, so I only saved half the commission, but every potential buyer I had came with a realtor. If I hadn't have paid the 2.5% I doubt many buyers would have even seen it.

This. I just sold mine in Michigan in six weeks by owner. The MLS listing was key and I also offered the buyer's agent 3%. Got lots of exposure and realtors showed my house since they were getting a 3% cut on the sale. I still saved thousands by pocketing the other 3%.

As long as you can take good pics, keep your house clean for showings and list the house based on comparables in your area you are all good.

We have it listed on Zillow, but have not gotten the MLS listing. On our listing we state we will work with the buyers agent, and are willing to pay the standard commission.

 

[avoiding injuries]

How much does the real estate agent see of that 2.5-3%? On a $500k sale are they getting $12-15k or does their broker take a % of that? Assuming the agent is netting 5-6 figures on a commission I can see why they wouldn't f with most fsbos. Makes a lot of sense to still pay the buyer's agent if selling yourself.

Simple math. Realtors are convinced that they deserve their egregious comission no matter what. Realtors don't sell homes. A properly priced property will sell itself. No realtor needed.

In principal, I agree with this. Reality though, I think you have the chance to sell for 5% more through a realtor rather than FSBO. Your listing will most certainly be a last resort showing for most realtors if you're not represented. I've seen it from both sides. Now that the internet has everything you need, I can't figure out why they still charge such large commissions. Or percentages.

 

[th3f00l]

Research flat fee listing services. Gets you in MLS. And advertise that you pay the buyer commission.

Is there a specific service that you recommend for this? I have just glanced at the first few hits on google. There is a good deal of variation in prices and services (length of time for the listing, number of pictures you can upload, number of websites that you will be list don, etc).

 

[avoiding injuries]

Research flat fee listing services. Gets you in MLS. And advertise that you pay the buyer commission.

Is there a specific service that you recommend for this? I have just glanced at the first few hits on google. There is a good deal of variation in prices and services (length of time for the listing, number of pictures you can upload, number of websites that you will be list don, etc).

I used FSBO.com

 

[cstu]

Hire a professional.

He should, but calling a Realtor a professional is going overboard.

How much does the real estate agent see of that 2.5-3%? On a $500k sale are they getting $12-15k or does their broker take a % of that? Assuming the agent is netting 5-6 figures on a commission I can see why they wouldn't f with most fsbos. Makes a lot of sense to still pay the buyer's agent if selling yourself.

Simple math. Realtors are convinced that they deserve their egregious comission no matter what. Realtors don't sell homes. A properly priced property will sell itself. No realtor needed.

I used to think like this until my wife got into the business and I saw how much they actually do. I agree about a property selling itself but some buyers (and probably their agents) are turned off by FSBO so that 2.5-3% is made up by a potential buyer not being involved with the seller. You also have a professional negotiating on your behalf.

As for the commission, my wife pays 40% to Coldwell Banker so off 2.5% on 500k she actually sees $12,500 and that doesn't include all of her expenses (professional photos, marketing materials) and time (open houses, meeting potential buyers anytime they want to see the property, etc.).

 

[comfortably numb]

How much does the real estate agent see of that 2.5-3%? On a $500k sale are they getting $12-15k or does their broker take a % of that? Assuming the agent is netting 5-6 figures on a commission I can see why they wouldn't f with most fsbos. Makes a lot of sense to still pay the buyer's agent if selling yourself.

Varies from office to office and I think I may not be the norm.My office gives me 70% of the 2.5 or 3% they take in.

I believe the norm is realtor and office split the commission down the middle but could be wrong.

 

[bushdocda]

Good luck.

You'll open up your market with an agent.

Nah. This is agent speak. They think an awful lot of themselves. Unscrupulous agents will steer their clients away from fsbo. That's why they have a bad rep as an ahem...profession. A good buyers agent will look out for the best interest of his buyer when they are interested in a fsbo. They are out there. No one, is worth 6 or 7 percent of the value of your home. No one.

No one is seeing his house, it needs to be on the MLS at a minimum IMO through one of those services if not going the agent route. It all depends how much someone wants to sell. Lots of people want to sell but can't or won't do what it takes for it to happen.

 

[johnnycakes]

Research flat fee listing services. Gets you in MLS. And advertise that you pay the buyer commission.

Is there a specific service that you recommend for this? I have just glanced at the first few hits on google. There is a good deal of variation in prices and services (length of time for the listing, number of pictures you can upload, number of websites that you will be list don, etc).

I used FSBO.com

I used owners.com. I agree with the foregoing that you still need an MLS listing

 

[Da Guru]

What city in Michigan? There are some very hot markets in Metro-Detroit that homes do not last long at all.

 

[johnnycakes]

What city in Michigan? There are some very hot markets in Metro-Detroit that homes do not last long at all.

I think the OP wants to sell the house, not burn it down.

 

[th3f00l]

What city in Michigan? There are some very hot markets in Metro-Detroit that homes do not last long at all.

Williamston, outside of Lansing.

 

[BassNBrew]

What city in Michigan? There are some very hot markets in Metro-Detroit that homes do not last long at all.

I think the OP wants to sell the house, not burn it down.

 

[BassNBrew]

How much does the real estate agent see of that 2.5-3%? On a $500k sale are they getting $12-15k or does their broker take a % of that? Assuming the agent is netting 5-6 figures on a commission I can see why they wouldn't f with most fsbos. Makes a lot of sense to still pay the buyer's agent if selling yourself.

Varies from office to office and I think I may not be the norm.My office gives me 70% of the 2.5 or 3% they take in.

I believe the norm is realtor and office split the commission down the middle but could be wrong.

65-95% is the typical split in my area.

 

[Dentist]

Mark