brucethebroker
Thinks s/he gets paid by the post
All good points.
Selling our home- agent or no agent
- Thread starter moneymaker
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All good points.
HI Bill
Thinks s/he gets paid by the post
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Both the seller's agent, and the buyer's agent work for the seller. A good realtor will help you price your property appropriately, with the aim of selling it within a reasonable amount of time (closer to your desired time frame). Many FSBO, and even people who use realtors, tend to over-price their properties. They often languish on the market for months, not being seen, and not receiving offers. Those agents do their clients little good. I think most realtors I've dealt with in Hawaii and California do what's in the seller's best interest. Of course, they want to get the highest price, but they also consider the speed at which you need to sell, and I always consider the monthly carrying costs in the equation, which can easily exceed $1K/mo for most properties.
travelover
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I don't think this is a truism. Sometimes you do, sometimes you just get ripped off. No one really cares more about your best interests than you, be it RE agents, financial advisors or anyone else.
moneymaker
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Thanks for the tips. We actually had an appraisal done before we did our remodel and it appraised at $615k. Then we did a complete bathroom Reno, and kitchen, and added stone onto our peninsula fireplace. But I def agree that an appraisal is def worth the money!
If you decide to hire an agent, be sure to have an independent appraiser and independent inspector. IMHO, I would have my own appraisal and inspection report to compare to buyers. No one knows your house like you do. Some things are worth haggling over, others are not. I would not take an offer that is contingent on the sale of a home. I would only consider offers from pre approved buyers.
Two houses in our neighborhood sold without a for sale sign. They sold by word of mouth. And it wasn't family and friends, somehow in realtor world the word got out. One day the house 3 doors down had a "Sold" sign in front, out of the blue. There was never a "For Sale" sign. Happened to a house across the street, down a few houses too.
Two houses in our neighborhood sold without a for sale sign. They sold by word of mouth. And it wasn't family and friends, somehow in realtor world the word got out. One day the house 3 doors down had a "Sold" sign in front, out of the blue. There was never a "For Sale" sign. Happened to a house across the street, down a few houses too.
I recommend hiring the best agent in your area.
My home sold in 1 day with 3 offers over the list price.
This realtor is a shark and sells a home every 3 days.
I was absolutely blown away.
The market in Connecticut is very weak but she had buyers in hand before the listing.
My previous experience with realtors was not favorable.
I learned a lesson by searching for the top realtor in my area.
Best of luck with your decision
My home sold in 1 day with 3 offers over the list price.
This realtor is a shark and sells a home every 3 days.
I was absolutely blown away.
The market in Connecticut is very weak but she had buyers in hand before the listing.
My previous experience with realtors was not favorable.
I learned a lesson by searching for the top realtor in my area.
Best of luck with your decision
travelover
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Good point.
I am in the midst of this right now.
I first tried FSBO 25 years ago and it fell flat. I tried for three months. Finally listed with a good realtor, it sold in three days for full price.
As I type, I am selling house for $650k and the lot next door for $200K.
THE WORLD HAS CHANGED! WE HAVE THE INTERNET. I believe realtors add value. However, since being downsized at work, I have the time to sell my house. It is pretty unique and priced near the top of the market. I paid an online broker $1,000 To list my house in MLS, lockbox, signs etc. Then, I waited for the stampede of realtors to show/sell my house. It never happened. I think the tight-knit, small town community blackballed us even though we offered a 2.5% buyers agent commission.
So, we started running open houses every weekend. Got an offer after 60 days. However, buyers did not price their home to sell! They were trying “buy low sell high”. Can’t blame them. So after that offer expired, took off the market for the holidays and a random call came in with a full price offer on the home. Should close in six weeks.
Now to sell the lot next door....paid same online broker $400 to list in MLS. Got a full price offer in 2 days.
To make a long post a little bit longer....
Realtors add value but if you have the time and the mental fortitude, you can do this on your own. It is not easy. My properties have not closed...yet. But both are under contract and should be complete in few weeks. Typical realtor commission would be over $50,000. I am scheduled to pay $6200. The hassle has been worth it to me. Totally worth it
I first tried FSBO 25 years ago and it fell flat. I tried for three months. Finally listed with a good realtor, it sold in three days for full price.
As I type, I am selling house for $650k and the lot next door for $200K.
THE WORLD HAS CHANGED! WE HAVE THE INTERNET. I believe realtors add value. However, since being downsized at work, I have the time to sell my house. It is pretty unique and priced near the top of the market. I paid an online broker $1,000 To list my house in MLS, lockbox, signs etc. Then, I waited for the stampede of realtors to show/sell my house. It never happened. I think the tight-knit, small town community blackballed us even though we offered a 2.5% buyers agent commission.
So, we started running open houses every weekend. Got an offer after 60 days. However, buyers did not price their home to sell! They were trying “buy low sell high”. Can’t blame them. So after that offer expired, took off the market for the holidays and a random call came in with a full price offer on the home. Should close in six weeks.
Now to sell the lot next door....paid same online broker $400 to list in MLS. Got a full price offer in 2 days.
To make a long post a little bit longer....
Realtors add value but if you have the time and the mental fortitude, you can do this on your own. It is not easy. My properties have not closed...yet. But both are under contract and should be complete in few weeks. Typical realtor commission would be over $50,000. I am scheduled to pay $6200. The hassle has been worth it to me. Totally worth it
We live in a very rural/remote area and realize at some point as we age we will eventually need to move to an area where family and services are close.
Our home interior is rustic and somewhat unique... (I'm a carpenter and finished the home with custom features) its probably the type of home a prospective buyer will either love or hate.
The location and acreage is very unique as well. We have an incredible view of Denali... river frontage with trout and salmon fishing right on the property and lots of privacy. Comps are very hard to find.
We had a complimentary appraisal done by a realtor who contacted us looking to list our home. The appraisal came in near what we expected without considering the value of the view and river.
We are considering FSBO possibly in a few years... asking considerably more than what the realtor's appraisal came in at and waiting for the right buyer who values the unique features of the property. We would be in no hurry to sell and could wait years for the right offer.
When the home sells.. we have a vacation home we could use until we find a new home near our kids.
Has anyone had a similar situation were there was no rush to sell with plenty of time to get the best offer... and save the commission costs by going FSBO?
Our home interior is rustic and somewhat unique... (I'm a carpenter and finished the home with custom features) its probably the type of home a prospective buyer will either love or hate.
The location and acreage is very unique as well. We have an incredible view of Denali... river frontage with trout and salmon fishing right on the property and lots of privacy. Comps are very hard to find.
We had a complimentary appraisal done by a realtor who contacted us looking to list our home. The appraisal came in near what we expected without considering the value of the view and river.
We are considering FSBO possibly in a few years... asking considerably more than what the realtor's appraisal came in at and waiting for the right buyer who values the unique features of the property. We would be in no hurry to sell and could wait years for the right offer.
When the home sells.. we have a vacation home we could use until we find a new home near our kids.
Has anyone had a similar situation were there was no rush to sell with plenty of time to get the best offer... and save the commission costs by going FSBO?
CardsFan
Thinks s/he gets paid by the post
Bold by me. That would eliminate many (most?) buyers. It depends on the market. But your other comments are right on. We sold a house years ago, over list. After the inspection, we were told the fireplace chimney needed repair. No argument on our part as it was OLD. BUT, never agree to make the repair. Just agree to a discount on the price (ours was reasonable). Leave the repairs to the new owner.
In my case, when I retired I moved and rented my condo, as the market had tanked.
After 5 years, the market had improved, and I felt it was time.
I previously had a Real Estate license, but I was also 50 miles away. I used the same Realtor who set me up with the management company for my rental.
She handled the myriad details involved; home inspection, retrofits to new codes, etc.
We dealt by e-mail and phone totally. I have Adobe Acrobat, so I could fill in and sign any form and send it back, which helped.
After 5 years, the market had improved, and I felt it was time.
I previously had a Real Estate license, but I was also 50 miles away. I used the same Realtor who set me up with the management company for my rental.
She handled the myriad details involved; home inspection, retrofits to new codes, etc.
We dealt by e-mail and phone totally. I have Adobe Acrobat, so I could fill in and sign any form and send it back, which helped.
Luck_Club
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Didn't read all the responses, but have sold several homes in past 24 months all from long distances.
Experiences and strategies:
1st one hired a realtor too far and not enough money to justify trips...terrible experience long story short agent messed it up, and I still had to manage the process, and close the deal, still had to pay him his 6%
2nd, listed on MLS with a listing agent only, and paid a nominal $few hundred bucks to get on the MLS. Got swamped with agents "with buyers", this was a pain in the a$$, and a part of the strategy for lead generation. I had arranged for a neighbor to open the door, for a small fee and the tire kickers jeopardized that relationship in the end it worked out OK
3rd one NO MLS only Zillow most expensive property by 4-7x, and I listed with a buyers only commission of 3%. Planned on showing it every other weekend open house style for 6 weeks. Sold it the first open house style for asking price. Asking price was 1/2 commission of market estimate.
4th Currently listed with an agent an investment property. Agent promised to hold open houses every weekend, then promptly disappeared after the listing. I know my asking was about $25K above market, but he took it anyways. My plan was/is to drop to market plus his commission and no more before trying to sell it myself. Not impressed once again with agents.
On 2 and 3 I cleared more and sold quicker than had I listed with an agent.
Buyers aren't stupid 5% more is still 5% more, and on a 200K plus house really adds up.
Experiences and strategies:
1st one hired a realtor too far and not enough money to justify trips...terrible experience long story short agent messed it up, and I still had to manage the process, and close the deal, still had to pay him his 6%
2nd, listed on MLS with a listing agent only, and paid a nominal $few hundred bucks to get on the MLS. Got swamped with agents "with buyers", this was a pain in the a$$, and a part of the strategy for lead generation. I had arranged for a neighbor to open the door, for a small fee and the tire kickers jeopardized that relationship in the end it worked out OK
3rd one NO MLS only Zillow most expensive property by 4-7x, and I listed with a buyers only commission of 3%. Planned on showing it every other weekend open house style for 6 weeks. Sold it the first open house style for asking price. Asking price was 1/2 commission of market estimate.
4th Currently listed with an agent an investment property. Agent promised to hold open houses every weekend, then promptly disappeared after the listing. I know my asking was about $25K above market, but he took it anyways
. My plan was/is to drop to market plus his commission and no more before trying to sell it myself. Not impressed once again with agents.On 2 and 3 I cleared more and sold quicker than had I listed with an agent.
Buyers aren't stupid 5% more is still 5% more, and on a 200K plus house really adds up.
brucethebroker
Thinks s/he gets paid by the post
Not true in all markets.
Most states now allow Realtors to represent either party. Where I practice, in the Midwest, we have been allowed to represent buyers for the last dozen years or so. This is sometimes referred to as a "buyers broker". Buyers and sellers are notified in writing, who represents whom.
Yes, it is crazy how expensive it is to sell a house! I feel like most people don't realize this, and since people roll one mortgage into the next they don't really realize the expense they've incurred. When people move to a new house after living in one for only 5 years or so, they are basically wiping out all the progress they have made on equity.
Ronstar
Moderator Emeritus
I sold my parents house by myself in 1 day with 2 offers over list. Just put a for sale sign out and waited for the phone to ring.
I went with the best local realtor when I sold our first house. It went unsold for a while - she left to Florida for the winter and left the listing to a new realtor - a single mom. She got it done.
The question of whether to sell by owner or realtor is a difficult one - IMO its depends on how saleable the house is. Anyone can sell a nice house in a hot area. But get a realtor if you anticipate a difficult time finding a buyer.
I went with the best local realtor when I sold our first house. It went unsold for a while - she left to Florida for the winter and left the listing to a new realtor - a single mom. She got it done.
The question of whether to sell by owner or realtor is a difficult one - IMO its depends on how saleable the house is. Anyone can sell a nice house in a hot area. But get a realtor if you anticipate a difficult time finding a buyer.
Which town? Just met with my agent over the weekend to list my house in the spring. Our town currently has very low inventory on the market and she's optimistic that our house will move fast.
freedomatlast
Thinks s/he gets paid by the post
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For those that chose to list on MLS without a broker, what online site did you use, who did you meet with, or what steps did you take to get your property included on the MLS?
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I can't remember - but a flat fee MLS listing search in google lists several options in Pennsylvania like the one I used in 2012. 6 month MLS listing for roughly $250, lock box etc might be extra, choose more pictures than the cheapest option.
The problem with agent vs. FSBO is there is usually not a way to know which would have gotten you more money. We sold our last house and got multiple offers, more than asking/more than appraisal with a 4 week close, so just the extra money plus not paying another month of mortgage/HOA, paid for the agent plus I didn't have any of the hassle as the agent did everything.
We were lucky as we researched a lot before we picked an agent and they are great and have used them multiple times. For 5%, they do what most agents do plus they pay for professional staging and they have full time cleaners, GC and handymen that we can use to prep house/inspection repairs/new home updates...which given how difficult it is here to get someone qualified to actually show up and do a good job that alone is worth it. We ended using their GC the morning of closing as something came up during the final walk-thru, they came out within an hour and the agent paid for them to ensure the sale went thru that day.
She was worth the money we spent but can't say the same is true for every agent I ever hired. The one time I tried FSBO for 2 months, I got nothing but hassle and ridiculous offers by the investor types that were looking to see just how much they could hose you over or people with sob stories about why they should pay 20% less. I eventually listed it with an agent and a week later got a normal offer.. it was very frustrating but every market is different. I believe we could have gotten an offer the first weekend FSBO but it wouldn't have been for over asking and I know I would have likely conceded more on the inspection items to not lose the deal thus likely negating all the gains and adding all that extra stress.
We were lucky as we researched a lot before we picked an agent and they are great and have used them multiple times. For 5%, they do what most agents do plus they pay for professional staging and they have full time cleaners, GC and handymen that we can use to prep house/inspection repairs/new home updates...which given how difficult it is here to get someone qualified to actually show up and do a good job that alone is worth it. We ended using their GC the morning of closing as something came up during the final walk-thru, they came out within an hour and the agent paid for them to ensure the sale went thru that day.
She was worth the money we spent but can't say the same is true for every agent I ever hired. The one time I tried FSBO for 2 months, I got nothing but hassle and ridiculous offers by the investor types that were looking to see just how much they could hose you over or people with sob stories about why they should pay 20% less. I eventually listed it with an agent and a week later got a normal offer.. it was very frustrating but every market is different. I believe we could have gotten an offer the first weekend FSBO but it wouldn't have been for over asking and I know I would have likely conceded more on the inspection items to not lose the deal thus likely negating all the gains and adding all that extra stress.
SomedaySoon
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I'm sure my experience is different than most, but I was happy with the outcome. I received an unsolicited request from a RE agent for an appraisal on my house around six months before we were thinking of listing. The value range she came back with was rather wide but basically in line with comps in the area. A second realtor (family friend) confirmed the values. On a lark, I put in a "Make Me Move" price on Zillow at the top of the value range (headroom for negotiation) for no cost at all. I was contacted by an interested party (local Mother of the future homebuyer), sent some pictures and the next thing we knew we were under contract. Only problem was that it happened so fast we had to get an apartment while our new retirement house was being built.
But we got the money we wanted, we didn't have to stage or prep the house, and since I had put money down on the new house without contingency, I didn't have to worry if the old house would sell on time.
But we got the money we wanted, we didn't have to stage or prep the house, and since I had put money down on the new house without contingency, I didn't have to worry if the old house would sell on time.
ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
This happened to us each time we listed make me move (2 years apart). Unfortunately each time we were not ready, so I refused the offer the first time and took the house off to re-evaluate. The second time the sale fell through due to health reasons of the buyer and we let her out of the contract. Again we took the house off the market. Bottom line we were premature and literally just testing the market in our area which is seasonal from January to May (Coastal Florida).
jkern
Full time employment: Posting here.
I sold my first home by owner in 1988. No agents and no cost. All went smooth and had no problems what so ever.
However, there is always a risk and things can become complicated.
However, there is always a risk and things can become complicated.
I've sold homes both ways. I prefer FSBO, and when that has happened, I've had the time and availability to do it. The first time I sold FSBO, before listing, I interviewed a few realtors as potential listing agents to get their feedback about my house and how to make it more sellable. I made several changes based on their suggestions and it definitely helped me to show the home better (and price it better too, since they usually bring comps). I felt a little guilty for using them like that, but I knew they might eventually get the listing if I couldn't sell it.
If you sell FSBO, you will get approached by a lot of agents who want to list your home. I tell them all that I will commission-split if they bring a buyer. I had initially thought that this might be a good source of qualified buyers, but it's never panned out for me. Looking back, all 3 FSBO homes I've sold were sold to individuals without agents. (I've heard that buyers' agents hate FSBO b/c of the hassle - inexperienced sellers ask them for advice on the process, or incorrectly expect to receive their assistance.) It also seems that FSBO buyers are a slightly different breed and often are attracted to deals that do not involve agents.
For me, the trick has always been making the house look pretty and holding open houses. I also have used Zillow and placed ads in our local paper - not cheap, but surprisingly productive - 2 of 3 FSBO homes sold that way via an Open House announcement (the third was from the FS sign). If I could get on the MLS for a few bucks, I certainly would. It was never a standalone option when I was selling - it's a rather recent precedent.
Once I have a buyer, I've used the standard form real estate agreement, and hired a real estate attorney to handle the transaction and escrow. The Agreement can be intimidating, but it's quite straightforward after you become familiar with it in practice. I read through a couple of books on Amazon about FSBO sales in my state to make sure I wasn't overlooking anything. Knock on wood, I've also been lucky to have great buyers.
I will also say that realtors can be extremely valuable too, it just depends on how good they are - like anything else. In this case, you pay the same commission whether the Agent is really good or really bad. Good agents will make you more money. You just have to find someone skillful that you really trust. Ask around to get recommendations, and do your homework before you sign any listing agreement.
If you sell FSBO, you will get approached by a lot of agents who want to list your home. I tell them all that I will commission-split if they bring a buyer. I had initially thought that this might be a good source of qualified buyers, but it's never panned out for me. Looking back, all 3 FSBO homes I've sold were sold to individuals without agents. (I've heard that buyers' agents hate FSBO b/c of the hassle - inexperienced sellers ask them for advice on the process, or incorrectly expect to receive their assistance.) It also seems that FSBO buyers are a slightly different breed and often are attracted to deals that do not involve agents.
For me, the trick has always been making the house look pretty and holding open houses. I also have used Zillow and placed ads in our local paper - not cheap, but surprisingly productive - 2 of 3 FSBO homes sold that way via an Open House announcement (the third was from the FS sign). If I could get on the MLS for a few bucks, I certainly would. It was never a standalone option when I was selling - it's a rather recent precedent.
Once I have a buyer, I've used the standard form real estate agreement, and hired a real estate attorney to handle the transaction and escrow. The Agreement can be intimidating, but it's quite straightforward after you become familiar with it in practice. I read through a couple of books on Amazon about FSBO sales in my state to make sure I wasn't overlooking anything. Knock on wood, I've also been lucky to have great buyers.
I will also say that realtors can be extremely valuable too, it just depends on how good they are - like anything else. In this case, you pay the same commission whether the Agent is really good or really bad. Good agents will make you more money. You just have to find someone skillful that you really trust. Ask around to get recommendations, and do your homework before you sign any listing agreement.
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THIS^^^
But it really depends on the market for your area. On our last sale (May2018) we had multiple agents stop by based just on word of mouth we were selling. It was a strong sellers market there and they knew it was an easy sale & commission. We had two offer to give us comps and an estimate of selling price and felt both were low based on our easy internet research of comps. We ended up listing on Zillow, CL, and a home sale site & selling it for cash for $30k over the higher comp with no agent, so netted another $20k vs with one. The buyer offered some extra benes, like no cost rent back, and waived any inspection work needed (there was none) and we negotiated a 2% for the buyers agent. We staged & had a professional real estate photographer do a set for $100 and made a great brochure ourselves on the computer which while it looked great, was not even used for the sale. If the market is hot, cash sales abound. In our old neighborhood the last 4 homes all sold for cash. And the one that didn’t they had to offer significant down payment and well over asking. No regrets.
