For Sale by Owner

[Reborn_Horn]

I need some advice on perhaps putting my home on the market as For Sale by Owner. I had the home listed with an agent for 6 months and am in the process of getting another realtor. However, I've had several people tell me that I should do For Sale by Owner.

If you recommend this idea, what additional feedback can you provide concerning owner financing as well?

Thanks everyone....

 

[El_Guapo]

When we were looking at houses, we got to where we wouldn't consider even looking at a FSBO. We had gone to a few and almost always the owner would be breathing down our neck, following us around the house as we looked, asking questions about what we were looking at and pointing out all kinds of stupid crap that they had done over the years.

We encountered realtors like that, too, but the FSBO's were far worse.

I know that 90% of what realtors do is worthless, especially now that most of the MLS stuff is on-line, but it's kinda one of those necessary evils. If you choose to go the FSBO route, remember that this is a BUSINESS DECISION. Potential buyers do not care that you upgraded the faucets in 1997 or that your daughter picked out the bathroom light fixtures. They're gonna rip all that stuff out anyway. Do not be even remotely emotional about it. Stay out of their way. Let them look at whatever they want for as long as they want and let them talk privately among themselves.

If your house has been on the market for six months, something's wrong. It's overpriced, obviously. There may be something specific that's turning people away - your realtor should have been able to give you some tips. Maybe the new one will do a better job marketing.

I wouldn't touch owner financing with a ten foot pole, but that's just me. It's plenty easy to qualify for some kind of loan out there - let the pro's handle it.

Good luck!

Where are you, btw? Austin real estate is smoking right now.

 

[El_Guapo]

btw, lest you think you're gonna save 6%, think again. In all likelihood you're still going to have to pay the buyer's broker 3%.

 

[Bernard]

I'm a real estate broker, but I don't sell houses except in "friends and family" type situations.

I can tell you with 100% certainty that the Texas Real Estate Commission specifically ALLOWS a real estate broker to share any portion of their commission with a principal in a transaction.

If a Realtor can't sell a house in six months, how exactly does a homeowner think they are going to sell the exact same house on their own? The MLS is an INCREDIBLY powerful marketing system. In Houston, when your house enters the MLS, there are something like 15,000 Realtors who can market your property to prospective buyers. All of these Realtors have the pretinent data on your house. They all have access to show the house to prospevie buyers via a key lockbox.

The name of the game when selling a house is showing it to the maximum number of prospective buyers. More buyers = a faster sale. More buyers = a higher price. No other marketing tool comes close to the MLS.

The time saved using a Realtor can be HUGE. A couple years ago, I sold a rental townhouse for my mother. She had a very long term tenant that moved out and she didn't want to bother renting to anyone else, so she decided to sell.

I listed the property in the MLS at a realistic price. Over the next 30 days, there were over 30 showings, resulting in 1 offer VERY close to the asking price. Done deal.

All the appointment making. All the showings. All the marketing. All the educating. Everything was done by the buyer agents. My mother didn't have to place ads in the paper. She didn't have to put signs in the yard. She didn't have to field phone call after phone call, assuming anyone even calls. All she had to do was sign a contract that someone else took the time to prepare, then show up at the closing and collect a check.

The fee you pay your Realtor may be the best money you ever spend.

Bernard

 

[unpaintedhuffhines]

It seems most people think realtors are worthless when everything goes right in a transaction and don't realize what a valuable asset they are when something goes wrong.

thinking 90% of what realtors do is worthless is a ridiculous generalization. I'm sorry, but you are naive to the process (that's not saying there aren't worthless agents out there) How many peope do you know have the time to sell their home by themselves? How many people do you know have the time to go through the buying process w/o any help? Sure it can be done, but most homebuyers I know have jobs.

and to reiterate what someone else said...if an agent couldn't sell your house in 6 months, you certainly won't be able to. The market has already seen your house and decided it is not worth what you are asking. Most likely you are looking at a price reduction. If you are not in any hurry to sell your home and don't mind it sitting for months, go with a FSBO. If you have any thoughts of selling anytime soon, go with an agent.

 

[SLIGHTLY STOOPID]

Thanks Buy Owner !!!

 

[unpaintedhuffhines]

come on Nick. you are generalizing an entire industry on YOUR horrible single experience.

yes, your experience sucked, no doubt. I can understand having a bad taste.

 

[Bernard]

NIck-
Your experience is with buying a house. This thread is about selling a house.

I advise many potential buyers to do their own legwork. Only you know exactly what you are looking for. If you know the neighborhoods, finding your dream home is a snap since most MLS listings can be found online.

If you found the house yourself, you should have worked directly with the listing broker and then asked for 3% from the listing broker since you represented yourself. Nine out of ten Realtors would be happy to share their fee with you in circumstances like this. By listing the property in the MLS they've already offered to compensate a buyers broker. Why would they care if the same amount went in your pocket?

Buyers brokers provide several worthwhile services:
1. Using their Supra key to get you into a bunch of house on the same day. Yes, you can call a listing agent and and ask them to show you one of their listings in person, but good luck making 15 appointments to see 15 houses in one day if you have to deal with 15 listing agents.
2. Providing you with real market data to make sure you don't over pay. I wouln't trust any data provided by a listing broker. Their job is to get to pay the highest price. I don't think a listing broker would give false data, but they certainly can provide incomplete data that paints a pretty picture of the market.
3. Give area and neighborhood data to people new to town.

Some buyers need all these services. Some buyers need much less. I think it's fine for a buyer's broker to offer to share some of their fee with their cleint if the circumstances merit. The fee being offered to a buyer's agent is predetermined by the listing broker. They offer the same fee to all buyer brokers regardless of the the amount of handholding each buyer broker must provide to their clients. The seller pays the same fee regardless. Why shouldn't the "easy" buyer get compensated?

Bernard