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Answers (20)
- LiFlatFeeRealty
- Contributions:11
As a Flat Fee MLS provider, I firmly believe that a for sale by owner can and will save thousands of dollars selling their own home while getting that marketing jolt from the MLS. A lot of my FSBO clients, sold direct to a buyer or with help from a selling agent from the MLS. I tell my clients that they have to be a integral part of marketing their own home. Important tips to use when marketing your own home on the MLS:
1. Price, Price, PRICE... it is so important to make sure you are priced correctly! I work in Long Island so I tell my clients to go to MLSli.com under the solds tab and put in their address to find out what sold around them. Also, Zillow and Listingbook.com is great for this too. With listingbook.com, you have to have an account from a realtor.
2. Condition .. get rid of the clutter and personalization!
3. Do the open houses!
4. Answer your phone or answer emails from buyers or realtors. Don't let unanswered voicemails sit too long.
5. Follow up with the buyers from your open houses or who call you.
6. With negotiations, don't worry about the lowball offers, it's a starting point. Most buyers almost always start off low. If they love it, they will return with a better offer.
Selling your own home on the MLS is not difficult! It's just that you are marketing to a bigger audience.
1. Price, Price, PRICE... it is so important to make sure you are priced correctly! I work in Long Island so I tell my clients to go to MLSli.com under the solds tab and put in their address to find out what sold around them. Also, Zillow and Listingbook.com is great for this too. With listingbook.com, you have to have an account from a realtor.
2. Condition .. get rid of the clutter and personalization!
3. Do the open houses!
4. Answer your phone or answer emails from buyers or realtors. Don't let unanswered voicemails sit too long.
5. Follow up with the buyers from your open houses or who call you.
6. With negotiations, don't worry about the lowball offers, it's a starting point. Most buyers almost always start off low. If they love it, they will return with a better offer.
Selling your own home on the MLS is not difficult! It's just that you are marketing to a bigger audience.
- James Berman, "TheNJRealtorGuy"
- Contributions:198
Yoga girl, did you sell your house? did you go FSBO? I understand the reasons why people sell FSBO. but what is your reason?
- Cheri Wilkins, "CheriWilkins"
- Contributions:403
To be able to place your home on Realtor.com you must list through a Realtor. This is a professional site and as Realtors we pay a lot per month to have our listings on this site. If you can see the value of being on Realtor.com you should consider talking with a Realtor so that they can explain to you the value of our knowledge, help and forms to get your home sold and save you a lot of headaches and heartaches, as well as help you get the most for your home even in this market.
Good Luck,
Cheri Wilkins
Good Luck,
Cheri Wilkins
- Francesca Patrizio, "PatrizioRE"
- Contributions:132
Most of my owners.com or foresalebyoner.com clients tell me that that rec'd more calls from agents wanting to listing their properties full service (i.e., 5% commission) than acual agents who had actual buyers.
[content removed by moderator for being self promotional]
[content removed by moderator for being self promotional]
- yogagirl2000
- Contributions:32
Hi Michael,
I will be using a real estate attorney to handle all of the contract work. Most likely the buyer will be represented by an agent who will help them navigate through the process.
I feel confident that I can handle title surveys, insurance etc.
My house has been on the market since Saturday. We have had a showing every day - no offer but we are getting people through the door. I am quite capable of doing what any intelligent real esate agent can do. No one can make a buyer purchase your home. It is there decision.
As for DOM, there are plenty of houses listed by agents still on the market. I see the signs every day. I am sure that the listing agent is NOT telling their seller that the listing is dead and there is no hope. What they are saying is price your house right and it will sell.
I believe that my house is listed at the right price and when the right buyer comes along, he/she will buy it.
I am also happy to add that the realtors who have brought in buyers have all been very nice. None has had an attitude that I am incapable of handling the transaction on my own.
I will be using a real estate attorney to handle all of the contract work. Most likely the buyer will be represented by an agent who will help them navigate through the process.
I feel confident that I can handle title surveys, insurance etc.
My house has been on the market since Saturday. We have had a showing every day - no offer but we are getting people through the door. I am quite capable of doing what any intelligent real esate agent can do. No one can make a buyer purchase your home. It is there decision.
As for DOM, there are plenty of houses listed by agents still on the market. I see the signs every day. I am sure that the listing agent is NOT telling their seller that the listing is dead and there is no hope. What they are saying is price your house right and it will sell.
I believe that my house is listed at the right price and when the right buyer comes along, he/she will buy it.
I am also happy to add that the realtors who have brought in buyers have all been very nice. None has had an attitude that I am incapable of handling the transaction on my own.
- Michael Russell, "michaelrussell"
- Contributions:330
An appraisal is meaningless. A home is worth what a buyer is willing to pay for it. Yes you can market your property on your own but what is your experience with contracts, inspections, radon, mold, appraisals, loan commitments, title insurance, surveys. $400 may get you in the MLS but how much did the house down the street sell for, why is it worth more/less than yours.
Once your home goes into the MLS there is a recordm of DOM, price changes and everything about your property, if you have a failed contract it will cost you thousands. If your property stays on the market for over 6 months right now, you are a dead listing.
You have to decide if saving 2% and that is if you really save that much is worth the risk of losing thousands. JMPO
Once your home goes into the MLS there is a recordm of DOM, price changes and everything about your property, if you have a failed contract it will cost you thousands. If your property stays on the market for over 6 months right now, you are a dead listing.
You have to decide if saving 2% and that is if you really save that much is worth the risk of losing thousands. JMPO
- davemichbell
- Contributions:1
Marc,
Clearly you agree with all of us when we say an agent's commission is worthless and is only a "transactional fee" for the really stupid in this market. An educated and determined FSBO will do all of the marketing, listing, photos that your large 6% fee will do. I know that my past FSBO transactions did not entail just putting a sign up. It included all of the same work you do on your listings. So shouldn't I be compensated the same way as you and your associates. The fact is I market my house, I find a buyer, I negotiate the deal and I arrange settlement. I have also used an agent, 2 times, and both times they did not sell the property... the buyers agent did. As a matter of fact they did not even show the house to the buyer... the buyers agent did. Does this sound familiar? That is called splitting the commission and that happens almost every transaction.
So I guess what I am trying to say is.... if you see no value in an FSBO marketing then you should also see no value in what you do.
If you can answer one question, does selling a $500,000.00 house really take 2 times the effort and resources as a $250,000.00 house? Aren't you using the same film in the camera, the same paper for the flyers, the same newspaper, websites, the same effort and same ballons for the open house? Or do you infact use $15,000.00 worth of paper and balloons to sell the more expensive home? A flat fee seems like the real "fair" way to operate doesn't it?
Your comment of days gone by for all of the "idiots", those days were probably a lot easier for you also right? You were probably making cash hand over fist and nobody ever questioned the 5-6 %. Well times are tight right now and reators should work with the fees to help stimulate transactions just as every other industry or run the risk of losing out completely.
My 2 cents!
Clearly you agree with all of us when we say an agent's commission is worthless and is only a "transactional fee" for the really stupid in this market. An educated and determined FSBO will do all of the marketing, listing, photos that your large 6% fee will do. I know that my past FSBO transactions did not entail just putting a sign up. It included all of the same work you do on your listings. So shouldn't I be compensated the same way as you and your associates. The fact is I market my house, I find a buyer, I negotiate the deal and I arrange settlement. I have also used an agent, 2 times, and both times they did not sell the property... the buyers agent did. As a matter of fact they did not even show the house to the buyer... the buyers agent did. Does this sound familiar? That is called splitting the commission and that happens almost every transaction.
So I guess what I am trying to say is.... if you see no value in an FSBO marketing then you should also see no value in what you do.
If you can answer one question, does selling a $500,000.00 house really take 2 times the effort and resources as a $250,000.00 house? Aren't you using the same film in the camera, the same paper for the flyers, the same newspaper, websites, the same effort and same ballons for the open house? Or do you infact use $15,000.00 worth of paper and balloons to sell the more expensive home? A flat fee seems like the real "fair" way to operate doesn't it?
Your comment of days gone by for all of the "idiots", those days were probably a lot easier for you also right? You were probably making cash hand over fist and nobody ever questioned the 5-6 %. Well times are tight right now and reators should work with the fees to help stimulate transactions just as every other industry or run the risk of losing out completely.
My 2 cents!
- Marc Paolella
- Contributions:369
No vulgar scare tactics. Just the truth. A full-service Realtor outperforms a limited service agency. It is a national market now and it is important that listings be presented dynamically.
The limited service agent doesn't do custom websites, doesn't do high definition video, doesn't use high quality hardware and software that presents a home in its best light. The limited service agent doesn't hire a professional stager, doesn't handle open houses, is not strong with negotiations, does not visit the house weekly to take new pictures or go over marketing strategy.
The limited service agent takes the $400, fills out a MLS form and waits for a buyer agent to show up with a buyer. Once that agent has the $400, there is no motivation to do anything at all. That's just the honest truth.
Not everyone wants or needs full service and that is fine.
But the smarter market participants do generally go full service. if you took a sample of all homes listed at $1,000,000 or over, you would see that almost no one chooses a limited service agency. That is just a fact. These are not dumb people, they know what a REAL agent does and they are willing to pay for it because it nets them the highest possible return.
-Marc
Yes, you can save maybe 2%, but you will lose that with the limited exposure and the weak negotiating.
You get what you pay for. It is that simple, it has always been that simple, it will always be that simple.
The limited service agent doesn't do custom websites, doesn't do high definition video, doesn't use high quality hardware and software that presents a home in its best light. The limited service agent doesn't hire a professional stager, doesn't handle open houses, is not strong with negotiations, does not visit the house weekly to take new pictures or go over marketing strategy.
The limited service agent takes the $400, fills out a MLS form and waits for a buyer agent to show up with a buyer. Once that agent has the $400, there is no motivation to do anything at all. That's just the honest truth.
Not everyone wants or needs full service and that is fine.
But the smarter market participants do generally go full service. if you took a sample of all homes listed at $1,000,000 or over, you would see that almost no one chooses a limited service agency. That is just a fact. These are not dumb people, they know what a REAL agent does and they are willing to pay for it because it nets them the highest possible return.
-Marc
Yes, you can save maybe 2%, but you will lose that with the limited exposure and the weak negotiating.
You get what you pay for. It is that simple, it has always been that simple, it will always be that simple.
- time2go4it
- Contributions:3
Location, Location, Location...If you own a home in a location that many people want to live in then you will have no problem selling By Owner. I was told the same thing as Marc is telling you, but my experience was just the opposite of what he's saying. Pricing the house at a fair price (NOT 6% LESS) will bring in buyers. Make sure all your basic maintenance and other such issues are done before showing the home. Now if you live in a cookie cutter neighborhood where every home is the same as the others and you have no way to market your home as "different" ...then you may want to consider a Realtor. Me, I'll go FSBO every time. Sorry Marc.
- Jeff Konstant, "jkonstant"
- Contributions:1970
Yogagirl:
Read Rockinblu's link several times. At first glance it seems to be a bit much, but it isn't. Trust me on this, read it three times and it will sink in.
Marc:
With all due respect, tying compensation to representation seems to be a clear violation of Article I of the code of ethics. It seems clear to me that refusing to show or falsifying information about a seller, the property or anything else to avoid showing a home to a buyer "client" is in direct violation.
Explain to us all how you steer a buyer "client" from the perfect property because you are not satisfied with the compensation.
Read Rockinblu's link several times. At first glance it seems to be a bit much, but it isn't. Trust me on this, read it three times and it will sink in.
Marc:
With all due respect, tying compensation to representation seems to be a clear violation of Article I of the code of ethics. It seems clear to me that refusing to show or falsifying information about a seller, the property or anything else to avoid showing a home to a buyer "client" is in direct violation.
Explain to us all how you steer a buyer "client" from the perfect property because you are not satisfied with the compensation.
- rockinblu
- Contributions:7202
Marc,
First let me apologize for the misspelling of your name. my son-in-law's name is Mark. Secondly, I'm going to have to assume one of two things. One I just caught you on a bad day or second you are Dr. Jekyll on Trulia, and Mr. Hyde on Zillow. I always enjoyed your posts over there and have given a thumbs up on many occasions. However, my days over there are about over. I guess since I've had good answers for those criticizing the viability of FSBO's, and a few have decided to flag anything the least bit off the wall that I post. I even got flagged for posting something as :
"I'll start the bidding at a hundred bucks and waive the inspection."
This was after someone placed an ad against the guidelines asking "Anybody want to buy my house?"
"Now, now, and now! Seriously now! "
This was when the question was "When is the best time to put your house up for sale? In the spring? What month?" If you notice, there were three questions with three now responses, and one last one to reinforce the previous three.
"Or maybe right after the Steelers get their butts kicked."
Okay, so I was wrong. However, this was in reference to RE business picking up after the Super Bowl.
What I'm saying in so many words is that I hope you were just having a bad day. but if this is where you come to take the gloves off, I'll be here. :)
- rockinblu
- Contributions:7202
"Starting with the lack of disclosure, the penchant FSBO's have for overpricing, lying about defects, the whole nine yards."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
As if agents never encourage or condone lack of disclosure. Mine didn't want to put disclosure info out regarding a cracked concrete garage floor or cracked fireplace insert refractories. I eventually ran some refractories down and replaced them before going FSBO. I did disclose the garage floor, which was obvious. I also disclosed a water seepage problem at one corner of the garage door when a wind driven rain from the east would occur. He didn't want to disclose that either. At that point I got the impression that anything that would make his job harder, he wasn't interested in regardless of the consequences. Oh yeah, I know he's the only one out there like that.
C'mon professor Mark. I wanna learn more. Pleese. Pretty pleeese.
- Buckeye45875
- Contributions:68
Marc - If the seller uses a formal appraisal to set the price, how can you say the home is overpriced?
- rockinblu
- Contributions:7202
" That situation will become increasingly rare as the Internet continues to educate buyers to cut FSBO offers by 5-6%."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
You know Mark, after your post I got to thinking a little more. I realized that I would much rather give that 5-6% to a buyer than having it split up by a bunch of smart alec agents and brokers. Gee, your post did wonders for Realtors' PR.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
You know Mark, after your post I got to thinking a little more. I realized that I would much rather give that 5-6% to a buyer than having it split up by a bunch of smart alec agents and brokers. Gee, your post did wonders for Realtors' PR.
- Marc Paolella
- Contributions:369
Rockin,
If I was representing your buyer, you would not have saved $30,000. I would have explained to him that you were no longer paying a commission and he should reduce his offer by 5-6%.
So, like I accurately said, you found a stupid buyer who overpaid for your home. That won't happen next time, and won't happen for the vast majority of FSBO's. In 2004 when there were multiple offers by a cavalcade of unqualified buyers who could qualify for a mortgage by exhibiting a pulse, no problem.
But the Internet is now making buyers smarter, and the odds of finding a dumb-dumb to overpay for your house is a window that is closing shut.
So forgetting your anecdotal success story, the average FSBO will face an army of smart Internet buyers who have Googled everything about real estate transactions. Those buyers will know that it is MANDATORY to reduce their offering price to a FSBO by the amount of the prevailing commission in that market.
Buyers reading this VERY POST are getting educated and will not make the mistake of offering a FSBO the same price as the exact same house down the street that is being sold by a Realtor. They should REDUCE their offer to reflect the fact that the FSBO is not paying a commission.
So keep arguing with me. And I'll keep educating buyers as to the dangers of buying from a FSBO. Starting with the lack of disclosure, the penchant FSBO's have for overpricing, lying about defects, the whole nine yards.
Is school going to be in session? Or out. It's your call.
-Professor Marc
If I was representing your buyer, you would not have saved $30,000. I would have explained to him that you were no longer paying a commission and he should reduce his offer by 5-6%.
So, like I accurately said, you found a stupid buyer who overpaid for your home. That won't happen next time, and won't happen for the vast majority of FSBO's. In 2004 when there were multiple offers by a cavalcade of unqualified buyers who could qualify for a mortgage by exhibiting a pulse, no problem.
But the Internet is now making buyers smarter, and the odds of finding a dumb-dumb to overpay for your house is a window that is closing shut.
So forgetting your anecdotal success story, the average FSBO will face an army of smart Internet buyers who have Googled everything about real estate transactions. Those buyers will know that it is MANDATORY to reduce their offering price to a FSBO by the amount of the prevailing commission in that market.
Buyers reading this VERY POST are getting educated and will not make the mistake of offering a FSBO the same price as the exact same house down the street that is being sold by a Realtor. They should REDUCE their offer to reflect the fact that the FSBO is not paying a commission.
So keep arguing with me. And I'll keep educating buyers as to the dangers of buying from a FSBO. Starting with the lack of disclosure, the penchant FSBO's have for overpricing, lying about defects, the whole nine yards.
Is school going to be in session? Or out. It's your call.
-Professor Marc
- rockinblu
- Contributions:7202
Marc,
Your reply was totally unprofessional and a discredit to all Realtors.
BTW, I must have been really lucky because a represented fence sitter made a back up offer after he heard I had an offer. His wife was ready to kill him for listening to their Realtor who thought I would die on the vine. There was also another couple wanting it after they got married in June. They were hoping against hope that we wouldn't sell. I still feel bad for them that we did.
Your reply was totally unprofessional and a discredit to all Realtors.
BTW, I must have been really lucky because a represented fence sitter made a back up offer after he heard I had an offer. His wife was ready to kill him for listening to their Realtor who thought I would die on the vine. There was also another couple wanting it after they got married in June. They were hoping against hope that we wouldn't sell. I still feel bad for them that we did.
- Marc Paolella
- Contributions:369
Rockin,
There are anecdotal success stories for going the FSBO route. It sounds like you lucked out and found a stupid buyer. That was great for you! That situation will become increasingly rare as the Internet continues to educate buyers to cut FSBO offers by 5-6%. It will not be as easy to find a sucker next time.
- rockinblu
- Contributions:7202
"You might save a little money"
~~~~~~~~~~~~~~~~~~~~~~~
Over 10 grand for me. 50 bucks in signs, $500 attorney, $20 in internet ads (postlets plus&Zillow), $25 on snacks & beverages. I thoroughly enjoyed it and would do it again in a heartbeat should the occasion ever arise. I do have to add that my buyer was unrepresented, and I was only doing a FSBO while off the MLS to reset the DOM. An agent had us for three months and dropped us like a hot potato when I wouldn't cave to lowering our price by 20k. Counting that, my savings was almost 30k.
~~~~~~~~~~~~~~~~~~~~~~~
Over 10 grand for me. 50 bucks in signs, $500 attorney, $20 in internet ads (postlets plus&Zillow), $25 on snacks & beverages. I thoroughly enjoyed it and would do it again in a heartbeat should the occasion ever arise. I do have to add that my buyer was unrepresented, and I was only doing a FSBO while off the MLS to reset the DOM. An agent had us for three months and dropped us like a hot potato when I wouldn't cave to lowering our price by 20k. Counting that, my savings was almost 30k.
- Marc Paolella
- Contributions:369
You might save a little money, but you are going to pay a 2-3% commission anyway. Most buyers are represented by agents, and those agents will not show your house unless they are getting paid. So after paying the 2-3% plus the owners.com fees, plus doing your own advertising, and doing your own showings and open houses, you'll end up saving next to nothing for a whole lot of trouble. So is it worth it? If you are unemployed and can sit home all day for showings and are willing to go to extraordinary lengths to save a few thousand dollars, then it's worth it. If you have any kind of real life, it will probably be more trouble than it's worth.
Keep in mind that almost all buyers will think you are not paying a commission and they will cut their offer by 5-6% right off the top. Buyers are not stupid. They will not pay you the same price your neighbor got who DID use a realtor. FSBO's attract low offers because the buyers know they are not paying a commission. It's common sense. You would do it too if you were on the buying end of a FSBO sale.
Keep in mind that almost all buyers will think you are not paying a commission and they will cut their offer by 5-6% right off the top. Buyers are not stupid. They will not pay you the same price your neighbor got who DID use a realtor. FSBO's attract low offers because the buyers know they are not paying a commission. It's common sense. You would do it too if you were on the buying end of a FSBO sale.
Has anyone used owners.com to get on the mls and realtor.com? Was it worth it?
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