Bay Area

[Bowman]

So in these days of a seller's market, where houses apparently sell themselves, is it better/worse to try and sell a property on your own using FSBO techniques?

Regardless, if one takes the FSBO route, what is the obligation regarding agent fees?  Do you as a seller set those fees?  If a buyer comes in with their agent, are you as a seller required/obliged to provide a commission?  And typically, where/how is the commission even discussed or stated?  Do realtors have some internal network by which they can find out what the commission or non-commission riding on the deal is?  Just wondering how this would work, if I wanted to do it on my own.

[DealHunter0]

Depends on how well you can market the property yourself.  I know redfin lists some FSBO properties, can't remember which website they get them from.  Craigslist is another option.  You might also be able to find a broker who would list the house on the MLS for a set fee.  Ideally you would find a buyer willing to complete the deal without an agent, so you would pay no commission on either end.  Where is your home located?  Might even be able to find a buyer on the board.

[Dukey]

1st house I bought in 1989 in Northridge CA was from FSBO seller.

I sold my 3 yr old house in Irvine in 1998 as FSBO on my own and not even on MLS.  I did pay 3% commission to the agent who brought me the seller.  I got fair price, faster (hard to believe but better locatiion) and more than the same floor plan sold 4 houses away.  My rather naive and amateurish marketing plan was to post FSBO signs with balloons on my front lawn with flyers whenever there was open house on the house nearby (every weekend for a month).  I also contacted the top selling agents by phone and emails to inform them about my house.  Most white agents blew me off but many of the top Asians were interested.  Asian agent representing white family brought me the buyer.  I got lucky as already bought bigger upper scale house few blocks away and my wife had the bragging right to the model home she wanted (also got lucky as the builder sold it to us - it pays to be nice and develop relationship with builder sales reps and also not represented by agent on new development).

Now would I do that again?  Probably not but use lower priced RE agent so my house gets on the MLS or Redfun on market like now with dearth of inventory.

[elt1]

ironically disclosure laws designed to protect the public from unscrupulous agents has made FSBOs a legal quagmire.

If you don't know disclosure law you will become cannon fodder for your buyers lawyer...It has gotten so bad that many realtors hire another agent to sell their own home.....it used to be buyer beware...now it is seller beware.

[Adam-la]

To answer the original questions:

1) What are the obligations to pay a realtor?  None.

2) Do you set the commisions you may choose to pay?  Yes

3) If a buyer comes and wants to use an agent what happens?   You can chose to pay a 'standard' commission, offer to pay a fixed dollar amount, decline to pay for anything and let the buyer pay if wanted.  

4) Do realtors have an internal network?  Yes.  it's the Multiple Listing Service and commission shares are listed there as well as a set of governing rules about them.

5) How does this work?   You should research this book from NOLO press.   It can walk you through the process and if you want, you can sell your home on your own.   Keep in mind that you will have greater market exposure and better legal protections by working with a realtor.  

http://www.nolo.com/products/for-sale-by-owner-in-california-fsbo.html

[Bowman]

Thanks for the answers, adam-la.  I also take the point about legal protections working through an agent.  Which leads naturally to the question: what legal protection do you get?  Is it mainly in "disclosures" about earthquakes asbestos flood zones and the like?  Or is there something else: for instance after you sell the house and the new buyer sues you for an electrical problem or something, what extra protection would you have had by having had a good realtor?

[lexa]

---

Bowman wrote:

Thanks for the answers, adam-la.  I also take the point about legal protections working through an agent.  Which leads naturally to the question: what legal protection do you get?  Is it mainly in "disclosures" about earthquakes asbestos flood zones and the like?  Or is there something else: for instance after you sell the house and the new buyer sues you for an electrical problem or something, what extra protection would you have had by having had a good realtor?

---

yeah, i have the same concern.

say, realtor did not suggest to disclose something he/she was not aware of, never asked seller and seller did not volunteer info.

now, it is later deemed to had to be disclosed and there is a legal issue with finanacial damages.

I really doubt that seller is off the hook here and his/her agent takes all blame and financial resposibility.

and if my doubt has grounds what's listing agent liability here or worth in legal protection he/she may offer?

i'm afraid, it falls into category of most other professional mistakes liability : trust in our experience and reputation, but if we fail you, there most you can get from us is "sorry".

[ConsultingAgent]

There are statutory disclosure requirements as noted in the DRE publication reference below

http://www.dre.ca.gov/files/pdf/re6.pdf

The agents have standardized forms based on the above requirements and will mitigate some of the risks by providing a complete list and most current version of the disclosure templates.

The responsibility still is with the seller to not withhold information which could be potentially of material significance. The onus and risk is still on the seller for proper disclosures.