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-   -   Fsbo (http://www.diychatroom.com/f2/fsbo-152207/)

BabsHoney 08-01-2012 10:15 AM

Fsbo
 
Wasn't sure if this needed go here or off-topic, but here goes:

My mom is putting her house on the market.
She has told me that after the professional painting and carpet is finished, but before she "officially" lists it with a realtor I can sell it for her. As in, she wants to put a FSBO sign out front with my phone number so I field calls and showings. She told me if manage to sell it before she has to get a realtor the. I get a $5,000 commission. It's a ton of work but that money would be so great I'm willing to at least try. (I'm also realistic about my limitations an realize it probably won't happen.)

I've done quite a bit of reading about the FSBO process but I still have a couple of questions.

There is a ton of work she is finishing up before she gets a realtor. Do I tell people looking at the house about this or wait for them to ask? And, do I mention that the house isn't officially on the market yet but that it will be soon? Would this be motivation for a buyer? What would you think if you were a buyer?

creeper 08-01-2012 10:23 AM

If you are selling it FSBO then it is on the market. Its just not on the MLS Its called exclusive.

Since you will be there for showings, play it out with each individual. Don't say too much during the showing. Realtors are notorious for talking themselves out of a deal.

Don't say "oh we are painting that ugly green wall." You never know what peoples tastes are and you may insult.

However, at the end of the showing you will have a good sense of whether they were feeling the love or not. If you feel like you are losing them that is the time to reveal your plans to upgrade the defects.

Good luck

Also, there is nothing wrong with mentioning that you have plans to list. It could motivate a Buyer if they think that the savings of going FSBO will be reflected back to the Buyer, rather then into a commission

BabsHoney 08-01-2012 10:26 AM

You're right. I worded it wrong; I guess I did mean it doesn't have an MLS listing but that it will soon. I just didn't know if that would be motivation for a buyer or not.

creeper 08-01-2012 10:29 AM

As I said it would be for some, but I think you should be prepared to compensate a Realtor who brings a buyer. I have clients who would refuse to even look at a FSBO if they thought they had no pro. protection

BabsHoney 08-01-2012 10:34 AM

Quote:

Originally Posted by creeper
As I said it would be for some, but I think you should be prepared to compensate a Realtor who brings a buyer. I have clients who would refuse to even look at a FSBO if they thought they had no pro. protection

From what I have read my understanding is when you FSBO you need to let buyer's agents know they will get a 1-2% commission. Does that sound right to you?

creeper 08-01-2012 10:51 AM

When I approach a FSBO the first thing I ask is are they willing to work with a Buyer's Broker. Then the commission negotiating begins. Personally, I charge more than that, but it can also depends if the Realtor has that Buyer under contract or not and how well you know your client and they're level of loyalty. There is a risk that the Buyer could walk away and approach the home owner privately.

Rates are negotiable, but I suppose they also reflect the price of housing in a particular area. Why would I put my rear and my license on the line (there is always the possibilty of a lawsuit) for a measly 1 percent of a $100,000 deal.

If I were you when a Realtor asks how much you are willing to compensate, start low and don't be afraid to ask if the Buyer is under contract.

Whatever you do, make sure you insert into any offer that it is conditional upon the Seller's solicitor's approval.

BabsHoney 08-01-2012 10:55 AM

It's a $490 k house if that makes any difference. Part of why my mom wants to take a stab at selling it without a realtor first and I don't blame her. :)

creeper 08-01-2012 11:08 AM

Best of luck to you and your mom.

It has been proven that using a Realtor will result in your home selling faster and for more $. Plus, when you factor in the time taken off work to accomodate showings, then back and forth to your lawyer during negotiations you will soon realize that you may be better off hiring a competent Realtor and that they actually do earn every penny they charge.

Sometimes, it does work out for FSBO's but be forewarned I've seen them end horribly as well.

Another tip....know your market,,,go visit your competion and see what you are up against

BabsHoney 08-01-2012 11:11 AM

Thanks for the advice. I absolutely appreciate the knowledge and skills a good realtor brings to the table and that's part of why we're both looking at this as a "won't hurt to try" mindset.

creeper 08-01-2012 11:19 AM

Quote:

Originally Posted by BabsHoney (Post 978974)
Thanks for the advice. I absolutely appreciate the knowledge and skills a good realtor brings to the table and that's part of why we're both looking at this as a "won't hurt to try" mindset.

Then know your market..decide on your bottom line..and be prepared with some solid reasons why your home is worth what it is. If they offered if the first place then they really want your home.

Don't get emotional..nobody cares that you kids were born there or Aunty got married in the back yard. This is business and these attachments mean nothing to a Buyer. They have no monetary value

I always tell my clients not to get insulted during the first round. Todays buyers are savy and they will almost always lowball you with the first offer. Don't get your back up and blow the deal.

Always make the other side kill the deal. Even if it means signing back at $500 or less. Do whatever it takes to keep it alive and if they walk then you did your best.

creeper 08-01-2012 03:11 PM

Keep us informed of your progress. I'm interested to know the final result

user1007 08-02-2012 06:15 AM

Not saying you should not try on your own but remember that a house sitting and not moving is a dangerous thing. Presumptions build about what is wrong with it every minute the sign sits out front. If you have not been able to move it in a reasonable period of time turn it over.

I have lived in two major camps when it comes to furnishings. It seems on both coasts agents prefer homes with nice furnishings and there are companies that rent furniture just for short periods to stage houses. Agents in the Midwest think spaces look best empty. I dunno. I do know when selling a home it should be as uncluttered and spotless clean at all times as possible. Build a fire or burn some campfire memories incense in the fireplace---even if it is 140 degrees F outside. Have the HVAC set to a reasonable temp. I have seen people try to sell things here when it is 400 below zero. One super agent of mine had a frig full of cookie dough I think because you always smelled fresh cookies when viewing a home with her. Coffee fumes are nice too. Real flowers, never plastic or silk, and fresh fruit always catch my eye. I walked away from a rather spectacular purchase once with every part of the house spotless. The swimming pool looked and smelled like a swamp. Do scoop the poop and clean the litter boxes if you have furry loved ones.

Make sure you print up some nice post cards or brochures about the property. If you do not have a floorplan to offer you should measure everything and make one. I use Sweet Home 3D which has a fast learning curve. It is available for all platforms, is open source and free as are extra symbol libraries. Get nice signage and not just a hardware store FSBO thing. Places like VistaPrint or FastSigns will help you out for not a whole lot of money. There are also companies that will mail a minimum quantity one card to a prospect the day they see your home. Spectacular, glossy resort type card hits your potential buyer with key points they liked about your place as fast as first class mail gets it to them. Others will not think to do this. Each will cost you $1 or something addressed and with postage.

I sometimes groaned paying real estate commissions but my agents were great about showing properties at weird hours, pre-qualifying buyers, eliminating buyers trying to sucker punch and get away with things and in title company closing states I worked in agents were able to close for me too.

Look into some of the FSBO companies that package things if you want to try this. You are definitely going to need good legal counsel for closing so you might as well find somebody now too. I think the FSBO companies offer access to multiple listing services too? I have honestly never sold or bought a home that way although I have done private deals.

Good luck! Maybe you find that you like it and a career path opens. Some of my real estate agents love the competition and stress. I don't have the patience and frankly agents have always done right and made me money. I have been in client properties when some absolute airheads show people through and I just shake my head.

It has always been well worth their percentage---which is highly negotiable---if you must beat them up. Not sure where you are but $495,000 sounds like it could be a nice home?

hammerlane 08-02-2012 06:35 AM

Quote:

Originally Posted by BabsHoney (Post 978970)
It's a $490 k house if that makes any difference. Part of why my mom wants to take a stab at selling it without a realtor first and I don't blame her. :)


Look if your mom is not in a hurry to sell then by all means let her try selling it herself. Why pay a Realty Company commision of roughly $26000 if say the house would sell in 2 weeks? Hire a Real Estate attorney and let him oversee the paperwork if you are uncertain.

Remember this. A realtor does not sell a house. The house will sell itself.

user1007 08-02-2012 06:49 AM

Quote:

Originally Posted by hammerlane (Post 979595)
Remember this. A realtor does not sell a house. The house will sell itself.

Must strongly disagree. A good realtor, for the buyer or the seller, will be able to spit forth all kinds of information about taxes, schools, parks, sewer assessments, street plowing, political and demographics of the hood. A good realtor will know who built the house, who renovated it and about all permits and inspections. There may be historical restrictions on either homes or properties and other quirky ordinances. He or she will also know about banks and mortgage brokers who might lend money to buy the place. And most certainly they will know of a good title company and or attorney to help someone coming from far, far away to close.

Most importantly, if I happened to be thinking of looking at your house? Mine could tell me before I hopped a plane how long you had been trying to sell, the original asking prices and final closing figures of all comparable properties near you. If interested, we would come at you with sharp teeth. Unless your place is spectacular, this is not yet a seller's market.

I understand, but it amazes me people skimp not wanting to hand over fairly minimal fees to a real estate person.

hammerlane 08-02-2012 07:12 AM

Quote:

Originally Posted by sdsester (Post 979599)
A good realtor, for the buyer or the seller, will be able to spit forth all kinds of information about taxes, schools, parks, sewer assessments, street plowing, political and demographics of the hood.

And whether that spitting of information is accurate is up to the buyer to verify. And honestly who buys a house nowadays because it is close to a bus route and local shopping.

Quote:

Originally Posted by sdsester (Post 979599)
A good realtor will know who built the house, who renovated it and about all permits and inspections.

Very easy nowadays to check via the county Auditors website and the City building department.

Quote:

Originally Posted by sdsester (Post 979599)
He or she will also know about banks and mortgage brokers who might lend money to buy the place. And most certainly they will know of a good title company and or attorney to help someone coming from far, far away to close .

Do we really need to go into the main reason why a specific lender and a specific title company are referred to by realtors. It may not always be because the title company or attorney is the "best" as you state.

Quote:

Originally Posted by sdsester (Post 979599)
it amazes me people skimp not wanting to hand over fairly minimal fees to a real estate person.

This seller in about 3 hours of time can have all the data you mentioned above placed on a flyer. But I understand that realtors have families and need to eat also. Like I said before if the seller is in no time constraint to sell then try it by owner.


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