Is For Sale by Owner Right for You?

Jon

You don't have to pay 6%. It is not a law. Negotiate for a price you think is fair. In these current economic times, the broker or agent should be more willing to negotiate. Also, remember that some of them are the same agents that sold the houses to the people now in foreclosure. Ask them if they did that. If they hesitate or admit it, find another agent. By the way, when was the last time a real estate agent screened a buyer for a criminal record? Security concerns are a scare tactic.

of @ Aug 18, 2008 07:41:54 AM

For Sale by Owner

The use of a Realtor (specially) for SELLERS is a matter of security.

When you list your house with a Realtor, you know for sure that the buyer coming to see your house is not a thief or a criminal - the buyer is coming with a Licensed Realtor.

So for the safety and security of your house - I think an extra amount is never a lot.

I will always and have always used a Realtor to sell my house - just makes me feel safe.

Ina

Ina of IN @ Aug 12, 2008 15:25:32 PM

For Sale by Owner

To sell your house you self will certainly save you some money but in the long run both buyers and seller can face a lot of trouble.

Buyers have no idea what all legal papers and registrations are required (I know of a friend who signed the papers for a land contract without a Realtor) the seller never registered the contract and today the buyer is in a lot of soup. The buyer invested a lot of money on remodling the house which he will have no claim over unless he goes into ligigation (again which no one has the time and money for it)

Sellers face a lot of problem too due to knowledge, when buyers face a problem after purchase and start talking with people - guess what - people start giving all kinds of advise, which motivates them to take all sorts of actions against the seller.

For the safety of the seller and security of the buyer, it is always advisable to use a professional. It might cost you a bit but nothing is more valuable than peace of mind. Both sellers and buyers are at peace knowing they used a person who will protect the interest of the seller as well as the buyer.

Nina of IN @ Aug 12, 2008 15:08:28 PM

6% commision

6% comission was reasonable when average homes were selling for 40 to 50 thousands. But most houses now sell for 200-300 thousand. The cost of selling a hone has not gone from $3000 to $18000 in thed last 30 years. With the internet it has actually gone down.

dave of WI @ Jul 07, 2008 10:00:24 AM

FSBO - My experience

We had our home on the market for 11 months with a realtor. Her idea of marketing was open house after open house (don't forget the balloons - they are the answer to everything!). We let her go and decided to go the For-Sale-By-Owner route. Here's what happened...

I listed our home on a national FSBO web site -- filled out all of the info and posted 10 really great pics. Also stated on the page that we would pay 3% to buyers agent to close the deal - since I wanted nothing to do with the legalities, etc. It cost us $70.00 to post.

Then I went to Yahoo Search Marketing and set up a campaign that featured 10 , what I thought were relevant, search terms. ( IE my county MLS, MY City Home For Sale, etc)

Result -- sold the home in 3 weeks -- sight unseen to a family from Texas. Their local agent closed it for us. Total cost of the Yahoo campign -- $168.00.

Made me think I'm in the wrong line of work!!!!!

Loren of OH @ Jun 27, 2008 22:45:36 PM

your friend the realtor

If any of you will be able to tell me that his realtor said: "I know you kinda like this house, but I found one at half the price that I think would suit your needs better..." I will reconsider my opinion. But I have yet to find a single realtor who would be willing to forego part of his commission by recommending to look at a much cheaper house. Usually you give your price range and all houses that are presented to you happen to be on the upper end of it... Until you really push for the lower-priced houses.

Don't get me wrong, I still do use realtors when I look for houses: I contact a few whose inventory I like and ask them to send me more. Until I find somebody willing to listen to my requests - that's the one I use to buy with.

I never use realtors to sell, though. You get an MLS listing for a few hundred bucks from online-realtors, who use your text and pictures.

If a local realtor sells my house to his client, he gets a 2.5% commission, which makes my house ok-to-show for him, since he still gets paid.

But my marketing is so much better then any realtor's, since I know the house and it's the only one which I'm selling, not one of 30. So I'm much more motivated, my signs are creative, my descriptions interesting and my pictures are taken on a beautiful sunny day with perfect lighting inside... not some drive-by rainy-day pics because some guy did not feel like coming back, just to show that one house at it's best...

house-flipper of NY @ Jun 27, 2008 22:43:37 PM

Why Indeed

Why would anyone use a Realtor? Probably for the same reason most people don't change their own oil or perform their own dentistry. Beccause they want a trained professional. It's like that old saying - the lawyer who represents himself has a fool for a client. But there will always be that segment of society that beleives they can do someone elses job better than they can. If you know all of the legalities of selling real estate, have a marketing machine behind you to get the house sold and the time to show the home - go for it. Go ahead and list on one of those FSBO sites and it just might work out.

Realtors and other real estate pros are just like any other profession in the world. There are good ones and there are bad ones and a lot of in between ones. The great thing about the 21st century is that now everyone has an opportunity to thoroughly vet their real estate professional before even meeting with them. If your real estate agent does not have a website that is the first clue. The quality and content of the website is the second. 87% of home searches begin online. If a real estate agent hasn't realized that and moved to capitalize on it they don't deserve your business.

There are many more clues but the simple truth is this. Real estate is no longer a part time business for dabblers - if it ever was. If you're not dealing with a professional who is operating in a business like fashion then you probably will have issues and come away with prejudicial thoughts like "Realtors are stupid."

T Keys of MD @ Jun 27, 2008 21:57:52 PM

Selling Your Home Yourself

First, How can one get onto MLS without realtor?

Second, I sold my home myself and bought one through a realtor. My home process went as smooth as silk, whereas the realtor-sponsored one was nothing but grief and some elements of it are problems even today. A realtor is not an asset.

Nicole of MA @ Jun 27, 2008 21:18:37 PM