Selling a House Off-Market

[redduck]

Selling a House Off-Market

We are thinking of moving in the next few years, but have decided that if someone makes the unsolicited right offer we would sell tomorrow. We (as do our neighbors) get calls and post cards from real estate agents claiming they have people interested in buying a home in the neighborhood. It is somewhat common for homes around here to be sold off-market.

The question is, does it make sense to tell these agents we would sell if someone comes in with the right offer (which would be a very high selling price for this house) and also tell them to leave us alone unless they come in with the price we want.

 

[NYEXPAT]

They are just fishing for listings, do it everyday where I live. Very few people use agents in the city where I live as all they want to do is put it on their website and hope it sells. You should understand the biggest problems with the RE market in the USA now is the lack of inventory, appreciation and now interest rates on the move.

 

[nash031]

Selling a House Off-Market

We are thinking of moving in the next few years, but have decided that if someone makes the unsolicited right offer we would sell tomorrow. We (as do our neighbors) get calls and post cards from real estate agents claiming they have people interested in buying a home in the neighborhood. It is somewhat common for homes around here to be sold off-market.

The question is, does it make sense to tell these agents we would sell if someone comes in with the right offer (which would be a very high selling price for this house) and also tell them to leave us alone unless they come in with the price we want.

I agree that this is normal and just agents working in your area fishing for business. In your case, I wouldn’t contact them unless you are really serious about selling and moving soon. Otherwise, you’re wasting everyone’s time.

As someone in the process of selling one home and buying another, I’ll tell you that there is nothing more frustrating from a buyer’s perspective than a seller who won’t even entertain an offer below their high end target. And if you aren’t going to advertise your list price, I’m not sure what you think you’re going to get unless you just look at Zillow and Redfin and see the estimates there.

In other words, if you’re at all serious about selling, list your house, be willing to entertain offers below your desired price. If you want to negotiate buyers up, just counter with your list price. That sends the desired message. Ultimately, if someone really wants your house, they will come up provided you’re not asking well above market value. We did this with a buyer who came in about $15K below asking when our house had been listed for a week. We countered full price. They held firm and so did we. We received two full price offers within two weeks from other buyers, so they lost out. But at least we responded to keep up good will in the event we didn’t get offers.

The market here is turning, FWIW. Niche and high end markets are already flat to turning towards the buyers. Desirable areas and lower prices are still competitive and favoring sellers.

 

[redduck]

For a seller, aren't lack of inventory and appreciation good things? And, people around here usually pay all cash for homes. As long as we don't sign up with these agents, should I be concerned if they put the house on their websites?

 

[aja8888]

For a seller, aren't lack of inventory and appreciation good things? And, people around here usually pay all cash for homes. As long as we don't sign up with these agents, should I be concerned if they put the house on their websites?

I seriously doubt that agents would advertise your property on thier (or an MLS) website without a selling contract from you.

 

[redduck]

I agree that this is normal and just agents working in your area fishing for business. In your case, I wouldn’t contact them unless you are really serious about selling and moving soon. Otherwise, you’re wasting everyone’s time.
.

Thanks nash031.
No, we are not serious about selling and moving soon unless we should get a stupid high offer. However, if we should get that stupid high offer--we're out of here.
And, maybe no legitimate agent would even consider working this way.

As for wasting time, I've got the time (well maybe not, as I'm 74).

Good luck to you on your move.

add to edit: was not aware of aja88888888's post as I was writing mine.

 

[pb4uski]

....We (as do our neighbors) get calls and post cards from real estate agents claiming they have people interested in buying a home in the neighborhood. ....

Tell then that if they have buyer that is really hot for your property that you'll give them a 72-hour listing... if the hot buyers don't make an offer in 72-hours then your contract with the agent expires... I suspect that you'll then hear a bunch of excuses and that is because these buyers are vaporware.

 

[Fedup]

I tell them pay me double the current price, otherwise I’m not interested.

 

[pb4uski]

I tell them pay me double the current price, otherwise I’m not interested.

and while you're at it.... get off my lawn!

 

[Bestwifeever]

I tell them pay me double the current price, otherwise I’m not interested.

The current price is $0 (since it’s not on the market there is no current price)—why not hold out for ten times the current price!

 

[Fedup]

and while you're at it.... get off my lawn!

Lol, No lawn here. But a few days ago, a realtor had the nerve to ring my doorbell at night as if it was something important. We had to tell her to go away.

 

[Fedup]

The current price is $0 (since it’s not on the market there is no current price)—why not hold out for ten times the current price!

Actually, my neighbor has a house on sale, so I know it’s not $0. Why not 10 times? I try not to be too greedy.

 

[ransil]

Zillow has a make me move feature.
You need to create an account, then you can edit your home details as owner.

Not sure if there is any fees involved, i have seen the listings.

 

[nash031]

Lol, No lawn here. But a few days ago, a realtor had the nerve to ring my doorbell at night as if it was something important. We had to tell her to go away.

Yeah, that's garbage. We get mailers a couple of times a month from local agents, but none have been so brazen as to knock on our door to ask if we want to sell our house. No way I'd work with that person; I'd tell them expressly that they lost any chance to work with me by soliciting in that manner.

 

[Scuba]

If I were a serious buyer, I wouldn’t waste my time considering a property that wasn’t listed. I’d choose a seller who wants to sell.

 

[redduck]

OK, just thought I'd run this idea by you guys. As the response was pretty much unanimous, I will drop the idea. Thanks for the input. Darn.

 

[Lakewood90712]

I agree that this is normal and just agents working in your area fishing for business. In your case, I wouldn’t contact them unless you are really serious about selling and moving soon. Otherwise, you’re wasting everyone’s time.

As someone in the process of selling one home and buying another, I’ll tell you that there is nothing more frustrating from a buyer’s perspective than a seller who won’t even entertain an offer below their high end target. And if you aren’t going to advertise your list price, I’m not sure what you think you’re going to get unless you just look at Zillow and Redfin and see the estimates there.

In other words, if you’re at all serious about selling, list your house, be willing to entertain offers below your desired price. If you want to negotiate buyers up, just counter with your list price. That sends the desired message. Ultimately, if someone really wants your house, they will come up provided you’re not asking well above market value. We did this with a buyer who came in about $15K below asking when our house had been listed for a week. We countered full price. They held firm and so did we. We received two full price offers within two weeks from other buyers, so they lost out. But at least we responded to keep up good will in the event we didn’t get offers.

The market here is turning, FWIW. Niche and high end markets are already flat to turning towards the buyers. Desirable areas and lower prices are still competitive and favoring sellers.

What he said.

PS I last sold a poor condition house in a desirable high end market by putting a " Make Me Move" in Zillow. I got tons of contacts of all types, about half realtors, wanting listings and many low ball offers I thought I new the market. After much gnashing of teeth with one of those realtors, he brought a buyer in at 10% over what I thought the market was . I paid 2.5% commission, and did not sign a listing, just a sales agreement . It was not stress free as a standard listing would likely have been, but the net was worth it.

Don't do this unless you are really ready to pack up and move.

 

[45th Birthday]

The advice not to bother with Realtors who send those solicitations is sound. I will chime in on a variation.

My wife was tasked with selling an extra condo her elderly parents did not need (they needed the money instead). It was across the hall from their other condo and in a desirable building with almost no inventory for sale. Her brother, who lives in this small city and is very active in the community, had a Realtor friend who heard the condo was for sale and pushed to get the listing.

This Realtor was high-pressure and went on and on about how she knew so many people who wanted the condo, at one point even listing them. She recommended a price that we thought too low. The family decided to sell the condo themselves, and listed it for $20,000 more than this Realtor suggested. It sold immediately for the higher price, and there was one more firm full price offer with probably another in the wings.

We realized that the people this seller represented were friends of hers, and either she was more interested in pleasing them with the transaction (a clear violation of her duty as a Realtor), or simply did not understand what the unit was worth (hard to believe because she is an active Realtor who has sold a number of units in that building).

So if you get to the point where you get unsolicited interest from anyone, make sure you know what your property is really worth.

 

[TwoByFour]

Selling a House Off-Market

The question is, does it make sense to tell these agents we would sell if someone comes in with the right offer (which would be a very high selling price for this house) and also tell them to leave us alone unless they come in with the price we want.

Yes. That is exactly how we sold our house. A neighbor was an RE agent and he heard that we were thinking of moving and asked if he could take some pix of the house. Our house was not listed and was not prepped at all for showing. He came back a week later with an offer to buy it. He represented the buyer, we represented ourselves, so paid him half the local agent rate, which came out to 3% as I recall. It was great because we did not have to worry about showing it and keeping it pristine looking all the time, or what to do with our dogs when people were looking at the house.

 

[MrsHaloFIRE]

I just almost bought a home that was a FSBO on Zillow. Little bit of description, few pics, I emailed him and he let me walk through. My inspector found water issues I couldn't live with, but as far as the transaction it was very easy. I used my realtor to draw up the contract. If he didn't want to use one, that's his business, not mine.

 

[brucethebroker]

Yes. That is exactly how we sold our house. A neighbor was an RE agent and he heard that we were thinking of moving and asked if he could take some pix of the house. Our house was not listed and was not prepped at all for showing. He came back a week later with an offer to buy it. He represented the buyer, we represented ourselves, so paid him half the local agent rate, which came out to 3% as I recall. It was great because we did not have to worry about showing it and keeping it pristine looking all the time, or what to do with our dogs when people were looking at the house.

20+ year real estate broker here. Do a For Sale by Owner.
Interview 3 Realtors. Tell them you are "considering" listing your home. If possible, use Realtors whose signs (listings) have been common in your area. Compare all three suggested list prices. Use Zillow for comparables also.

Once you have chosen your price, pay $50-$100 for a very nicely made For Sale by Owner sign (from a local sign maker). Put "We honor broker commissions" on the sign. That means, you will pay a Realtor commission on the sale. Just the buyer's Realtor, since there is no listing Realtor. Set up an account with Zillow, and list on their website. Take at least a dozen photos. Many areas now have professional home photographers for a $200 or so (ask the Realtors you interview).

How much do you pay the buyer Realtor? Ask the three Realtors you interview what the total commission is to list, and how much of that goes to the buyer Realtor (list Realtor will split with buyer Realtor usually). If it seems to be 2.5% to the buyer Realtor, as an example, use that number. When Realtors call you (when your sign is in the yard) tell them you aren't listed, but if they provide a buyer, the commission is ___.

Before I was a Realtor, I sold my house that way. I had an attorney do the paperwork, and supervise the closing procedures.

Don't feel like you are using the Realtors. If your FSBO sign does not sell your home, you might just call one of the three you interviewed, right? Good luck.

 

[redduck]

Yes. That is exactly how we sold our house. A neighbor was an RE agent and he heard that we were thinking of moving and asked if he could take some pix of the house. Our house was not listed and was not prepped at all for showing. He came back a week later with an offer to buy it. He represented the buyer,

This happened to some good friends of ours. A neighbor was a real estate agent. He took some pictures (house was not listed) and sold the house within a week for the asking price. The friends did nothing to prep the house. In fact, the buyer bought the house sight unseen, cash.

 

[braumeister]

Sometimes the stars align.

Some years ago we were selling our house, which was quite unusual (built by an architect who liked to experiment) and in a rural part of Ohio. The buyer was in California and bought it sight unseen for 15% more than our asking price, just based on photos he saw online. He was originally from that area and wanted to move back, and the house just appealed to him (as it had to us previously).

 

[Fedup]

My neighbor’s house just sold at asking price. I did talk to the realtor and she said she sold homes for the highest price in our neighborhood. I told my husband if needs be, we can sell at top price now, we know who the realtor is.

 

[Scuba]

20+ year real estate broker here. Do a For Sale by Owner.

Interview 3 Realtors. Tell them you are "considering" listing your home. If possible, use Realtors whose signs (listings) have been common in your area. Compare all three suggested list prices. Use Zillow for comparables also.



Once you have chosen your price, pay $50-$100 for a very nicely made For Sale by Owner sign (from a local sign maker). Put "We honor broker commissions" on the sign. That means, you will pay a Realtor commission on the sale. Just the buyer's Realtor, since there is no listing Realtor. Set up an account with Zillow, and list on their website. Take at least a dozen photos. Many areas now have professional home photographers for a $200 or so (ask the Realtors you interview).



How much do you pay the buyer Realtor? Ask the three Realtors you interview what the total commission is to list, and how much of that goes to the buyer Realtor (list Realtor will split with buyer Realtor usually). If it seems to be 2.5% to the buyer Realtor, as an example, use that number. When Realtors call you (when your sign is in the yard) tell them you aren't listed, but if they provide a buyer, the commission is ___.



Before I was a Realtor, I sold my house that way. I had an attorney do the paperwork, and supervise the closing procedures.



Don't feel like you are using the Realtors. If your FSBO sign does not sell your home, you might just call one of the three you interviewed, right? Good luck.

Good idea to stress that you’ll honor realtor commissions and pay the going rate. Someone in our condo building thought that because the market is hot, they would cut the commissions by a percentage point. Their place never sold and they ended up renting it out.