DIY Home Selling

[Superman]

I am going to sell my house. My local real estate market is definitely a "seller's" market. Houses are selling like hotcakes. I'd be interested in avoiding the 7% commissions if possible, but I'm not sure how to achieve a sufficiently broad marketing strategy. The MLS is still the BMOC, but I wonder if newspaper ads, Internet ads etc. can come anywhere close to the coverage that MLS can.

[fdemar]

You'll be able to get a better selling price going through an agent, that will more than offset the comission cost. In my neighborhood I see "for sale by owner" signs go up all the time, and one of two things happens: either the seller eventually lists with a realtor, or the house comes off the market unsold.

Look for someone who's moving a lot of houses in your area, and list with them. It will be worth it.

[widebody911]

You're fighting the real estate cartel; buyer's agents simply won't touch a FSBO

[island911]

Just think of it as a TAX.

. . . you'll feel better about knowing your wealth is being redistributed.

Seriously, besides listing, the realitor really helps the deal happen. Too many wierd games happen with the buyer dealing directly with the seller.

[Dantilla]

A licensed realtor takes on a whole lot of liability to make sure everything is done in the proper fashion. Well worth 7% to keep everybody out of court.

That being said, I have sold on my own. I already had a buyer, and I've bought and sold enough real estate, that I was comfortable drawing up the Purchase & Sale Agreement myself. I'm not a lawyer, just stoopid.

It worked fine. The title and escrow company will be there to hold your hand, but if this is new to you, I recommend a realtor. Having your house listed in the MLS is important.

A good thing about Washington state, is that the entire state uses the same, standard forms, that are somewhat self-explanitory. Licenced realtors are no longer supposed to give you blank forms, however.

You can buy over the counter forms at most office supply stores. Read them carefully, and leave nothing blank.

Good luck.

[JTO]

Super,
What Dantilla said. I've only sold my homes myself; three so far. No trouble, no hassles, the titile company and lender help keep things legit.
Troy

[CarreraS2]

I think in a really hot market, it can be done.

I think ONE of the reason FSBO's historically haven't sold very well is that those houses have tended to be sold by people with unrealistic expectations (either forced, i.e., they owe more on the house than it is worth, or unforced, i.e., they are simply unrealistic people). So they price the house above market. Buyer's, realizing that the seller is saving on commissions, expect to get a better deal (which benefits both parties), not a WORSE deal.

But, again, I think in a hot market, a well priced house probably could sell FSBO. If, like in my area, brokered houses are selling in 2 hours, then it seems like a FSBO could sell in, say, a week!

(Finally, aren't agents taking lower commissions these days, like 3%?)

[jrdavid68]

Find a realtor that will work with you and either kick some of the commission back after the sale or do it for a smaller percentage. Are you also going to buy a house? It's easier to bargain that way if the realtor knows they are looking at two commissions instead of one.

Everything is negotiable.

[Superman]

Thanks for the input. I'd be happy to have an attorney keep everyone on the straight and narrow, but perhaps a licensed real estate person would be a smarter (faster) way to go.

And Island, while I have to admit I have found many of your OT posts disturbing, I was glad to be FULLY AMUSED by this one. Touche'

[85eurocarrera]

I sold my house with FSBO company.

I had a couple of realtors come through and give me thier numbers if I were to list with them. Then I priced it a little below what they were gonna sell it at. Put the sign up in the yard and it sold the same day, before I even listed it on the MLS. FSBO Co. reimbursed me for it since I didnt use that service.

My house was a starter home and at the time a sellers market. The buyers had a realtor so I paid them 2.5% and they took care of the closing. I wanted to close fast because I wanted to make sure it was a legit deal. We closed in a month. Took my cash and lived with my parents for 3.5 months. Thats another story.

Highly recomend giving it a try. They have an a la cart service so you can do as much or as little as you want. Good Luck!

Joe

[JavaBrewer]

FSBO without money to the buying agent is a guaranteed loser unless you find buyers not working with a realtor. How would you like to drive clients around all day(s) only to have them buy a FSBO that nets you $0.00.

7% is top dollar for a realtor (3.5 split between buying and selling agents). In this market selling agents will drop that to 5.5% by just asking. Some go even lower depending on your area. You might be able to find a broker who will agree to do the paper work and put you on the MLS for a straight fee vs. % of sale price. You do the advertising and selling. Most home owners make better salesmen anyway. That said, I've used the same realtor for all real estate transactions. He's become a family friend and someone we trust.

[MysticLlama]

It can be done without though.

About a month and a half ago my mom sold her house in Sacramento, CA.

All she did was put a sign in the front yard.

She ended up getting her asking price, which was $17k over appraisal!

The deal went through without a hitch on the first shot, she even got a seller's closing statment from the web that ended up making the buyer pay almost all the closing costs, etc.

If the market is right, it can definately be done.

[RANDY P]

Local papers, the Seattle Times has big exposure for FSBO listings (a long way from your place but someone who's into investment properties..). Some RE offices will list on MLS for a flat fee. Lots of resources. You can also opt to pay a comission to any realtor who brings you a buyer, still paying comission but at a much lower rate... 2-3% typically.

Just make sure whomever you talk to has been prequalified with down at a bank. Concerning the paperwork, you can flat fee a realtor for that too if needed.

rjp

rjp

[Zeke]

Put up a sign and say, "Broker Co-operation." Tell them you are the listing agent and listen to no talk about full commision. Split commision is what they would have gotten and that's what you are giving, period. The listing half of the commision goes for marketing expenses and overhead plus salary to the listing agent. Buyer's agent gets the other half for bringing the pre approved buyer. Both should be able to handle the paperwork. Why do you need 2 offices and 2 realtors doing the same thing?

In CA, we would then open an escrow and the finance people do the rest. Realtors I've had were worthless to me. Once they signed me and got the thing on the MLS, they were only there to open the house for another agent and buyer and present thier offer. Can't you do that? I know I will from now on.

I'd give it a shot in today's sellers market. You can always give a realtor a one party listing to show the house at a negotiated commision.

Read some Bob Bruss

[motion]

I have several RE transactions in my future... I'm going to set aside a couple weekends and $275 and get the damn license myself. Should be able to save myself tens of thousands in commissions. I agree with others, though... you gotta play the game with the buyer's agent or they're gonna black list you.

[304065]

I've bought and sold enough real estate, that I was comfortable drawing up the Purchase & Sale Agreement myself

* * *

You can buy over the counter forms at most office supply stores. Read them carefully, and leave nothing blank.

Use a broker if you feel comfortable. But under no circumstances should you draft legal forms yourself nor close the sale without consulting a real estate lawyer. For most people, selling their home is the largest transaction they have ever done, and there's a lot of downside and headache if it's not done right.

The legal risk is not worth saving $500 or whatever a local attorney would charge you to draft the purchase and sale agreement, review the deed, review the legal description against a survey or the plat, handle the escrow, negotiate with the title insurance company, etc.

"But the forms are in plain english! Anyone can fill them out!"

No, they are not. It looks like plain english but it's not. The words have meanings and connotations in the law that go way beyond what people contemplate, and if you alter them you could be in for a world of hurt.

Call a lawyer and ask for a flat fee for a house closing-- guys who do this all the time will share the risk with the client that there's a larger investment of their time.

Good luck!

[vash]

maybe it is only 6% here in cali. but if and when i sell, i will go with the agent that helped me buy the house. in my opinion, there is alot more happening than a bunch of paperwork. i visited my agent at a property she was selling, (to sign some papers) and i was amazed at her level of professionalism. she totally staged the house, she had an agent only open house where she catered, she suggest some low cost upgrades that more than payed for itselfs. she really works hard. she really holds herself accountable. at least in california bay area, the best REA's will make plenty over asking to cover the commissh. i dont think you can get the info out there as effeciently as a pro. good luck supe!

[on-ramp]

I say list your house on Isoldmyhouse.com

Fvuck the agents, they dont do anything special. they are just an unnecessary middle man and a dying breed. just get a good lawyer to do all the paperwork for you. besides, 7% commission is way too much money for what these low-life used car saleman-type do.

you can sell your own house, it can be done, go do it!

some of you also have it backwards regarding buyer agents. these agents WORK for and REPRESENT the buyer. If i sell my house for 400K, i get 400K , not a penny less. it's the buyers responsibility to pay their buyers agent commission, not the seller.

[JavaBrewer]

Originally posted by on-ramp
some of you also have it backwards regarding buyer agents. these agents WORK for and REPRESENT the buyer. If i sell my house for 400K, i get 400K , not a penny less. it's the buyers responsibility to pay their buyers agent commission, not the seller.

That's definitely not how it works here in Cali. We've bought 2 homes through a realtor and never paid a single dime to him. His proceeds came from the seller's side.

[SRISER]

That is correct...sell side pays all commish...split between seller and buyers agent...or some other ratio.