Selling your house yourself, or with a realtor? (1 Viewer)

[ghostguy123]

My mom is selling her Condo. I just found out with all possible fees (not just realtor fees), if she sells for $85,000 she will clear something like $75,300.

That is just disturbing.

Anyone out there sell your house on your own and have some success?? And if so, how did you get the word out and advertise?

I was also thinking that for a house/condo in this price range (very nice place, just on the lower end of housing costs here) it would probably be best to just try and sell it on your own. I mean, you can sell for a good 5 grand cheaper (which is quite a bit on a 90k place) and still clear more than with a realtor.

 

[Nugget]

Are you going to pay the buyers agent?

 

[Mark Davis]

My mom is selling her Condo. I just found out with all possible fees (not just realtor fees), if she sells for $85,000 she will clear something like $75,300.

That is just disturbing.

Anyone out there sell your house on your own and have some success?? And if so, how did you get the word out and advertise?

I was also thinking that for a house/condo in this price range (very nice place, just on the lower end of housing costs here) it would probably be best to just try and sell it on your own. I mean, you can sell for a good 5 grand cheaper (which is quite a bit on a 90k place) and still clear more than with a realtor.

I have a realtor's license but it is on inactive status. I simply had no time to continue pursuing real estate when my other business took off. That said, whenever I make a property transaction I always have a realtor. I know enough to do it myself obviously, but especially from the seller's standpoint you need one if only for MLS exposure. It's a challenging sale in most markets today. If your listing isn't on MLS, you are losing a huge amount of exposure and potential buyers.

 

[ghostguy123]

If your listing isn't on MLS, you are losing a huge amount of exposure and potential buyers.

While I agree with this, if you can get people to see it (even if it is a lot less people), it seems the interest level for that lesser number of people will be greater because you can price the house several thousand dollars lower (and still clear more than with a realtor).

With signs, craigslist, and a few other things I do think it's possible to get a decent number of people to know about the property. Just wondering what maybe some others have used to get the word out a bit.

 

[ghostguy123]

Are you going to pay the buyers agent?

Well, assuming they offer an amount where she would clear what she wants to clear, then I suppose paying the buying agent their 3% would make sense.

If they come and offer $80,000 then no.

 

[johnnycakes]

I sold my dad's house last year without using an agent. BUT in the listing I indicated I would pay a buyer's agent 2½%... and every single person who looked at the house came with an agent. Had I not agreed to pay the buyer's agent, that house would still be on the market. But I did save the other 2½% by selling myself. I still had to pay for a real estate attorney but that was much cheaper than the 2½% the seller's agent would have been paid for doing nothing more than to create the MLS listing.

 

[chet]

My mom is selling her Condo. I just found out with all possible fees (not just realtor fees), if she sells for $85,000 she will clear something like $75,300.

That is just disturbing.

What fees are you assuming?

 

[Ditkaless Wonders]

I collected the Realtor Flyers I got as junk mail for around three months. This was my list of Realtors that concentrated on my area. I wrote them to let them know my townhouse would be going on the market. I invited them to a Realtor only open house. I let them know that I would be paying them their standard buyers agent commission if they brought me offers. I served them wine and appetizers while there. I told them I would hold an open house the next weekend with burgers, hot dogs, drinks and balloons for the kids. Several of them brought clients bye the next weekend. I got an acceptable offer the next weekend.

This was 14 years ago. I don't know if it would work now.

 

[jon_mx]

My mom is selling her Condo. I just found out with all possible fees (not just realtor fees), if she sells for $85,000 she will clear something like $75,300.

That is just disturbing.

What fees are you assuming?

Good question. She should be able to get a listing agent to do it for 5%, with the condition that 3% of that goes to the seller. There may be about $600 for title insurance. And maybe $500 for closing. No reason she should not clear over $79,500, and $1100 of those fees are going to be applicable with or without a Realtor involved.

 

[Otis]

There was a thread on this recently. Do a search you will get some good info.

Short answer is yes, but it depends on the market. We sold a condo last year without a broker and made out well.

 

[Scarpaggio]

You can also get it listed on the MLS from various online agents for about $300. I sold my fsbo back in 2008 and had it listed by some on line agent out of tampa. He did nothing else other than list it. Shoot the agent for the buyer then did all the work and #####ed at closing that she should be getting more money. Thats her problem not mine as she didn't realize it was fsbo until we were actually at the table to sign all the paperwork. I don't know if I'd do it again.

 

[Tiger Fan]

If it's a sellers market, you can do it relatively easily. If it's not, it can be a hassle and burdensome.

Also, seems like your numbers are off. Typically it's 3% to the sellers agent and 3% to the buyers agent.

How much free time does your mom have?

 

[mr roboto]

The biggest issues with selling yourself are being able to communicate quickly with showings and being professional in negotiations. Most owners are too emotional or want too much money for their place. I'm not a big fan of the real estate game where brokers have a choke hold on the market, but many buyers (especially first time buyers) are nervous when they see a fsbo.

Can she be professional in communicating regarding showings, is she able to be dispassionate during negotiations? If so, it's possible.

 

[cstu]

I sold my dad's house last year without using an agent. BUT in the listing I indicated I would pay a buyer's agent 2½%... and every single person who looked at the house came with an agent. Had I not agreed to pay the buyer's agent, that house would still be on the market. But I did save the other 2½% by selling myself. I still had to pay for a real estate attorney but that was much cheaper than the 2½% the seller's agent would have been paid for doing nothing more than to create the MLS listing.

Doing the open houses, talking to interested clients, making sure the transaction goes smoothly (paperwork, appraiser, inspection, etc.).

All that in this case for $2000.

 

[ghostguy123]

I sold my dad's house last year without using an agent. BUT in the listing I indicated I would pay a buyer's agent 2½%... and every single person who looked at the house came with an agent. Had I not agreed to pay the buyer's agent, that house would still be on the market. But I did save the other 2½% by selling myself. I still had to pay for a real estate attorney but that was much cheaper than the 2½% the seller's agent would have been paid for doing nothing more than to create the MLS listing.

Well of course you say you will pay the buyer's agent. They either offer you enough to clear what you want, or they don't.

 

[ghostguy123]

My mom is selling her Condo. I just found out with all possible fees (not just realtor fees), if she sells for $85,000 she will clear something like $75,300.

That is just disturbing.

What fees are you assuming?

Not an assumption. Her realtor gave her a detailed balance sheet showing every single possible fee that goes into the sale on her end with a sale price of exactly $85,000. I looked at it briefly. Realtor fees were 7% I know that, and then a bunch of other fees, most of which I don't really know what they are.

 

[ghostguy123]

My mom is selling her Condo. I just found out with all possible fees (not just realtor fees), if she sells for $85,000 she will clear something like $75,300.

That is just disturbing.

What fees are you assuming?

Good question. She should be able to get a listing agent to do it for 5%, with the condition that 3% of that goes to the seller. There may be about $600 for title insurance. And maybe $500 for closing. No reason she should not clear over $79,500, and $1100 of those fees are going to be applicable with or without a Realtor involved.

I agree she is paying SOMEONE too much in this process.

There was something in property taxes that she may not have to pay, wasn't sure on that part.

Also they apparently had some $500 home warranty on there that she didn't know about till I brought it up to her.

 

[ghostguy123]

If it's a sellers market, you can do it relatively easily. If it's not, it can be a hassle and burdensome.

Also, seems like your numbers are off. Typically it's 3% to the sellers agent and 3% to the buyers agent.

How much free time does your mom have?

PLenty. She is retiring in a couple months. Unfortunately she signed with the company (Howard Hannah) and it is some 1 year contract or something.

She said they told her 7%.

My mother is also a bit of a pushover.

 

[bentley]

We're in the process of getting a house ready to sell right now and my realtor is worth every penny, if for no other reason that the fact that he answers the phone when my crazy ### wife has her every-other-day emotional meltdown about leaving the house that she brought her children home to.

 

[ghostguy123]

Can she be professional in communicating regarding showings, is she able to be dispassionate during negotiations? If so, it's possible.

Strangely, when she sold her previous condo several years back she had it listed with an agent.

Some random couple showed up to the house while she was home and asked to see the place. My mom showed them around, talked to them a while, and they offered the asking price within a couple days.

She also spent the last 20 years working in the city courthouse and knows like 10 lawyers pretty well that can do the title stuff at little to no cost for her. I have no idea why she listed with an agent AGAIN.

 

[Zegras11]

The biggest issues with selling yourself are being able to communicate quickly with showings and being professional in negotiations. Most owners are too emotional or want too much money for their place. I'm not a big fan of the real estate game where brokers have a choke hold on the market, but many buyers (especially first time buyers) are nervous when they see a fsbo.

Can she be professional in communicating regarding showings, is she able to be dispassionate during negotiations? If so, it's possible.

These are good points. Many sellers also make a huge deal out of things they have upgraded that have no value to anyone else but themselves.

 

[Tiger Fan]

If it's a sellers market, you can do it relatively easily. If it's not, it can be a hassle and burdensome.

Also, seems like your numbers are off. Typically it's 3% to the sellers agent and 3% to the buyers agent.

How much free time does your mom have?

PLenty. She is retiring in a couple months. Unfortunately she signed with the company (Howard Hannah) and it is some 1 year contract or something.

She said they told her 7%.

My mother is also a bit of a pushover.

oof. Try to figure out if there's a way out

 

[needanap]

She should have one of her lawyers friends call the broker for her and get the contract cancelled or modified. Getting the broker fee down to 5% gets you a quick $1700. Most of your other fees are going to be fixed. Home warranty seems high, especially for a condo - would think it would be $350 at most. Most agents will estimate high for your fees so that when they come under you are happy. If your mom is older and a bit of a pushover, I think she would benefit from a good agent. Good luck.

 

[chet]

If it's a sellers market, you can do it relatively easily. If it's not, it can be a hassle and burdensome.

Also, seems like your numbers are off. Typically it's 3% to the sellers agent and 3% to the buyers agent.

How much free time does your mom have?

PLenty. She is retiring in a couple months. Unfortunately she signed with the company (Howard Hannah) and it is some 1 year contract or something.

She said they told her 7%.

My mother is also a bit of a pushover.

oof. Try to figure out if there's a way out

If I had to guess though, the R/E firm will defend their right to 7% vigorously. Sucks for your mom.

 

[xulf]

If it's a sellers market, you can do it relatively easily. If it's not, it can be a hassle and burdensome.

Also, seems like your numbers are off. Typically it's 3% to the sellers agent and 3% to the buyers agent.

How much free time does your mom have?

PLenty. She is retiring in a couple months. Unfortunately she signed with the company (Howard Hannah) and it is some 1 year contract or something.

She said they told her 7%.

My mother is also a bit of a pushover.

oof. Try to figure out if there's a way out

I would also see if there is a way out. Though, it isn't uncommon on lesser priced homes for the % to be higher and on higher priced homes for the % to be lower. After the broker takes half of seller side commission, it doesn't leave a whole lot for the agent.

 

[SteevieG]

A one year exclusive contract (if that's what it actually is)seems way out of line as well.

 

[Dentist]

Mark

 

[jon_mx]

A one year exclusive contract (if that's what it actually is)seems way out of line as well.

And I am sure there is also a clause in there where if you sell the home yourself within a one-year time after the listing expires, you will still owe a commission. The only way to overcome that clause is if you hire another realtor who does the sale.

 

[ghostguy123]

I am actually contemplating selling my rental property on my own soon. I did ask a realtor how much they would charge to do all the paperwork and whatnot if I find a buyer on my own, and she said 2.5%. For this particular condo that would only end up being somewhere around $1,500, so I probably wouldn't even bother trying to find someone to do it cheaper. I imagine the condo will sell for between 60-65k, so even if I just hired a realtor for the whole thing the fees wouldnt be crazy.

However, I have a feeling there will be pretty decent demand for this condo given its location and price point compared to other condos in the area here, so I should be able to get some interest on my own.

 

[Ignoramus]

Check with an attorney as well, ghostguy, to see what they'd charge to handle the paperwork. It's been a while since I've looked into it, but last I checked they were typically in the $500-$1000 range, rather than percentage-based.

 

[jon_mx]

Or you could just go online and find a purchase agreement and disclose forms online and fill them in yourself.

 

[ghostguy123]

Or you could just go online and find a purchase agreement and disclose forms online and fill them in yourself.

There is zero chance I would attempt all that myself. Its not worth whatever potential craziness that can happen due to my lack of knowledge with the transfer of property. Some things are worth paying for.

 

[fruity pebbles]

Since youre still going to have to pay the buyers agent 2.5-3%, i didnt think it was worth the hassle to sell without one. if you buy and sell a lot, it might be worth it to get your realtors license. Buy a house and represent yourself and you get 3% of the commission.

 

[ghostguy123]

I think i can find a buyer here without a buyers agent. For this particular condo anyway.

No rush to sell. If it doesnt work for me I can always go with full realtor services.