01-21-2013 04:10 PM
The fact that you are asking that question means it will be hard.
Yes, FSBO is possible. Yes, it takes a lot of work to make sure you comply with local regulations and real estate law. Yes, it will take a lot of time researching and showing the home. Marketing the home takes time and money. You will have to pay to list the home and its likely that the home will not be shown by agents because they don't want to deal with a home owner.
01-22-2013 09:46 AM
It's possible to perform any number of surgical procedures on yourself without the help of a Doctor, but is that really a smart way to save a buck or two? When the buyer finds something that wasn't disclosed or signed properly in a FSBO, and rest assured - they will, then sues you for $56,000, that $28k in commissions paid by using a Realtor will seem cheap by comparison.
Everything is negotiable, including a 3, 4, 5, or 6% commission. Given how fast well priced homes are selling, you could whittle down your cost of sale expenses down considerably given that it might sell within 24 hours. My guess is that some buyers might even overpay for the home or to get you to accept their offer pay your cost to sell or a portion thereof.
That cost of sale to you is really the cost of peace of mind for what is a very challenging financial transaction of significance. Don't go forward without some assistance by a professional Realtor unless you're ready to accept what could unwind swiftly into a very difficult sale.
Thanks for reading,
See all my reviews
01-22-2013 02:03 PM - edited 01-22-2013 02:07 PM
Right now, in the MLS, is a growing number of listings offering the SELLING agent as low as 2% of the selling price.
If your property looks like a clean, trouble-free transaction - meaning you've taken care of the place, and don't appear to have a lot of repair "issues" - then you MIGHT find a LISTING agent who will take the job for as little as 1% of the selling price. ( For THEIR side, which is in addition to the other - SELLING - agent's side.)
That means that you MIGHT be able to hire good representation for as little as 3% to a maximum of 4% of the sales price.
Another factor for you - to help entice an agent to accept a lower fee - is whether or not you'll be using your agent in an additional transaction - such as buying your next house. If you are going to help them earn 2% to 3% of a purchase, you can reasonably request them to reduce ( But certainly not eliminate.) their fees on listing your house.
Another area for negotiation - just like the lenders do - is if only one agent is representing both the buyer and the seller. The time to do THAT negotiation, is when the listing agent brings you their buyer's offer - not try to do it afterwards. Also, ask them whether there are any other offers. Another agent's offer may be higher, or otherwise better for YOU. Try to make certain you have personally seen ALL the offers.
Real estate commissions are ALWAYS negotiable. Some "high priced" agents say they'll refuse to negotiate their commissions. MY response - if I were their potential client - would be to say "NEXT!" ( As in the next agent, waiting out in your waiting room.)
Can you hire a discount agent ( Or a discount firm, such as Redfin.) and get lousy representation? Perhaps. But there are plenty of us out there who are willing to be competitive, while still doing the job as completely - and successfully - as the high priced guys.
Bob Phillips - Realty ONE Group - South Orange County, CA
01-28-2013 11:16 AM
If you have a cold, do you go to a doctor? If you slightly sprain your ankle, do you go to the doctor or put ice on it? If you have a headache, do you go to the doctor or take an Advil?
Comparing a real estate transaction to a surgical procedure is both ridiculous and deceptive. And comparing a real estate agent to a Surgeon is both misleading and just plain stupid. How much education does a surgeon have? A real estate agent? What testing and certification does a surgeon need to pass? A real estate agent?
What are the consequences of a botched surgery? And how repairable are they? And for a real estate transaction?
How many idiot manuals are there for do-it-yourself surgery? For do-it-yourself real estate transactions?
Your other posts seem more intelligent than this one. What gives?
01-28-2013 11:20 AM
And since when did hiring a "professional" Realtor ever guarantee that a real estate transaction could not unwind or become very difficult? In my experience, most agents add to the difficulties and confusion.
And why in the world would anyone refer to a real estate agent as a "professional"? They are sales persons, not professionals. And refering to them as professionals is an insult to all those who have educated themselves and put in the time and work to become professionals.
01-29-2013 08:51 AM
There are zero guarantees in life, only informed risk choices to make.
I was going to use the blanket aphorism "anyone who represents themselves in court has a fool for a client", but instead chose a medical analogy which seemed a bit more useful. It's completely possible for anyone to successfully market and sell their home without a professional Realtor. Ask someone who has done it successfully before trying it yourself. Learn from their experience and see if it is something you'd want to do. If not, spend the money and let a professional do some of the heavy lifting.
I define the term "professional" as someone dedicated to the industry who also has the ethics required to remain active within it. Contrary to popular opinion, there are Realtors out there who don't just roll out of bed, hop in the car with an unsuspecting client, and cash their fat commission checks later that afternoon. I recognize there are a great number of realtors like that, but not every single one is.
Professional Realtors set themselves apart from the pack based on taking any number of continuing education classes, over and above what's required by the DRE. These Realtors might specialize in 1031 exchanges, energy efficient homes, farm properties, and other niche sales that less capable agents can't handle. A professional Realtor knows how to organize all of the services it takes to efficiently buy or sell a home. These services can run 10-20 companies deep depending on the complexity of the sale. If you've ever tried to herd cats, you'll know it takes some skills to do so that some people just don't have. Other professional Realtors are distinguished by the terrific volume of positive client reviews, as opposed by a terrific number of closed sales which is for the most part meaningless to me. I know many an agent who have sold a number of homes, but left a trail of ruin behind them. It's one of the main reasons I support the Redfin business model by the way. IMHO. a focus on customer experience over transactional volume is the best way to reform the industry. There are real "area experts", Realtors who know each family within their farm base (250 - 500 homes) well enough to make a solid income providing real service to the community when called upon to help with financial transactions of magnitude like selling a home. They don't sell 4-5 homes per year like some so called "area experts", but 20 to 30 which contrary to popular opinion is a great deal of real and challenging work.
There are professional garbagemen, prep cooks, software coders, executive assistants, and yes, even Realtors. It all depends on how the term is defined. I hope you can agree with me that not all "professionals" are created equally and that some people within the trade are just simply better than others.
Thanks for reading,
See all my reviews
01-31-2013 03:21 PM - edited 01-31-2013 03:22 PM
if you want to sell your house, get an agent who will get it listed on the mls. your listing will then be picked up on redfin and a whole bunch of other real estate sites.
btw, there are lots of laws and legal documents involved in selling a house. yes, you could have a lawyer do the paperwork for you, but when it comes to things like counters, reading each offer to make sure everything is done right, and knowing things like how long is a good amount of time to allow for escrows and contingencies, personally i'd rather have an agent do it than have to learn all of that or risk messing up a deal.
02-02-2013 10:46 PM
LMAO at comparing acting as your own real estate agent to acting as your own attorney in court.
I agree if you have to ask this question you aren't qualified to do it yourself and should just get an agent though.