Agent Listing...<or>...FSBOwner...??

Discussion in 'Homesteading Questions' started by fordy, Apr 6, 2006.

  1. fordy

    fordy Well-Known Member

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    ............I'm approaching a time that I will need to decide to either list my property oR try and do the "FSBO" route . I visited with one agent and she indicated that she would comeout and do a simple appraisal\evaluation without a committment from me on signing a contract . I told her up front that I'm inclined to do the FSBO route first and she indicated she would still comeout and take alook . Is this an acceptable practice by the seller as long as I've disclosed my intentions before she comes out . In fact , I'd like to get a second opinion as well to see how close they are in the appraisal . thanks , fordy... :shrug:
     
  2. clovis

    clovis Well-Known Member

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    I think she is hoping to create a relationship with you, so if you ever do list with an agent, she will be the first one you think of.
    Clove
     

  3. donsgal

    donsgal Nohoa Homestead

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    Doing a "comparitive market analysis" is generally considered the way to develop a relationship with a seller. Most people have no clue what their property is actually worth on the market. The Realtor uses this to her/his advantage and will probably then "discuss" with you what all is entailed in selling your own place, and how much better off you will be to use a "professional".

    Most Realtors encourage people to list their house for much more than they should in the hopes that they will snag some sucker who doesn't know any better. Don't kid yourself that this hasn't been instrumental in increasing housing costs to it's current astronomical level. Also, while working with a realtor makes the sales transaction much easier, you CAN do it yourself with a good title company and some readily accessible real estate forms (and possibly an attorney if you have a complicated case). Even with an attorney, you are still going to save a lot of money compared to using a realtor. Only if you cannot commit the time, effort and energy to marketing and selling your house should you use a realtor.

    If you do have an appraisal done (CMA) do NOT feel obligated to that realtor for anything.

    dongal
     
  4. Maura

    Maura Well-Known Member Supporter

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    Realtors sometimes do a great job of estimating the value of a property. Sometimes they do a lousy job. If you do not feel confident in doing your own market analysis, hire someone to do it for you. They will create a list of homes similar to yours that have sold recently (probably in the past two years) and make adjustments for the differences between those homes and yours. Once you know the true market value of your home, you can put it on the market, asking enough to have some wiggle room.

    If you use a realtor, you will be giving away 5%, 6%, or more in commission. If you sell yourself, you can sell it for less because you won't be paying commission, and possibly sell it sooner than if you have to hold out for more money. You will need to pay legal fees.
     
  5. fordy

    fordy Well-Known Member

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    .................Well , I appreciate you'll responses and the last RE contract I was involved with was for 6 months and they basically listed the property with MLS and then sat on their azz :grump: and waited for the money to showUP . I wasn't a very happy camper and the realtor wouldn't let me out of the contract bless her little heart . I don't have much empathy for two faced people so I guess I'm just very skeptical of the whole listing process . thanks for your responses . fordy... :cowboy:
     
  6. wilderness1989

    wilderness1989 Well-Known Member

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    If you put a FSBO sign in front of your place or an ad in the paper you will find out quickly how many realtors are in your area. Just remember realtors are out to make money for themselves. I've had the tell me bald faced lies to try to get me to list with them. A word to the wise. :croc:
     
  7. Selena

    Selena proud to be pro-choice

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    We've sold houses the "FSBO" way (all new construction). One thing we will probably do next time is to make it known that a "finder's fee" of 2.5% will be paid to a buyer's agent. Might make it more enticing if a prospective buyer comes through with his/her/their agent. Some areas really blackball FSBO (Minneapolis suburbs - see money magazine article, probably 2 issues back) and here is a bankrate link:
    http://www.bankrate.com/brm/news/real-estate/20060318a1.asp?prodtype=mtg
     
  8. citilivin

    citilivin Well-Known Member

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    It really depends on your market and how quickly you want to sell. If you are sure you want to sell it yourself make sure you have all of the necessary forms. If the market dictates get all of the inspections before. This does not mean you have to do everything in the report, but at least the buyer knows upfront what to expect. If your market is slow, you might want to offer to cooperate with buyer's agent.
     
  9. uyk7

    uyk7 Well-Known Member

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    I hope you don't mind if I plug my website here. Please consider placing an ad on www.homesteadhunter.com. If you go the FSBO route we would use your contact information; if you go the realtor route we would use the realtor's contact information. Whether you advertise we us or not, good luck on the sale!

    Stuart
    Stuart.Lynch@homesteadhunter.com
     
  10. shadowwalker

    shadowwalker Well-Known Member

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    Can you do a FSBO and sell "as is"? Don't know just asking.
     
  11. cfabe

    cfabe Well-Known Member

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    Shadow, yes, you can.
     
  12. Tango

    Tango Well-Known Member

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    We've always sold with an agent (I had a short life time in real estate in Texas) and the commission varies a great deal and so do the agents. A lot of legal problems can come up in a real estate transaction and a well-informed agent knows the laws and the contracts. However, you can sell it yourself and once you have a qualified buyer go directly to a title company and the title company will take care of the sale for you. They will make some money off it but not as much as an agent would. You'll also have some protection from legal backlash should anything go wrong.
     
  13. Hurricane Kurt

    Hurricane Kurt Well-Known Member

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    fordy... I have found that a realtor's commission is negotioble. In my last real estate transaction I found a real go-getter realtor that agreed to %3.5 and she had my home sold in less than 3 weeks. But I was comfortable enough with my research and decision to hire this particular realtor that I would have probably paid %5.5 of her usual %6, but one, I'm always looking for a break and two, I wanted to see how she would negotiate with me so I would have an idea how she would treat a potential buyer.

    Imo a good realtor is worth their weight in gold but they are few and far between.

    Kurt
     
  14. Obser

    Obser "Mobile Homesteaders"

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    A very important issue in any real estate sale is price. The seller wants as much as possible and the buyer wants the lowest price possible. Where they meet is the transaction price. Overpriced property may sell to an uninformed buyer – and you might win the lottery. Typically it just languishes on the market until inflation raises prices generally or until the seller gets discouraged.

    The appropriate price is NOT what guesses, neighbors, friends indicate. It is what the property will sell for in a reasonable length of time.

    It might be advisable to pay for a professional appraisal by an independent professional appraiser. Ask your bank who they use.

    Any real estate agent has a vested interest in getting your listing – immediately if possible, eventually if necessary. Some are ethical and professional, others are not.

    It is common practice, but unethical, to suggest a higher than market price in order to stimulate the seller to list. After a few weeks on the market at an unrealistic price the seller is often open to lowering the price (to what it should have been to start with) and the agent still has the listing.

    Another common Realtor practice that can make a quick buck is to encourage a low price to insure a quick turnover. The commission will be a little lower at a lower price, but it will be quick and sure money in their bank account.

    Realtors say that the average FSBO sells for 9% less than the average comparable listed property (partially because buyers bargain harder knowing there is no commission). Don’t take this to the bank, but it might be true.

    Important: Remember that you as seller are bound by all real estate laws of your state (including disclosure requirements) whether you know about them or not. In some states compliance with the law can be quite involved (many pages of legalize) but very necessary in order to avoid legal problems.

    It might pay to investigate one of the real estate firms, like HelpUSell(?) or “FSBO”, to see what services they offer?????

    If you decide to list with an agency “interview” several. Have them make a full presentation on what they recommend as price and how they will market the property. You might be shocked at the differences.

    Ask if the real estate agency is a member of the local Multi-List. If so, the listing is available to all agents to sell (and split the commission with the listing agency). It is usually to the seller’s advantage for their property to be on Multi-List.

    Commission rates are negotiable. It may not be wise to insist on too low a commission because that can reduce agents’ enthusiasm about showing and selling the property.

    Just my obervations and opinions. I am not a real estate agent, attorney, banker or appraiser (but have bought and sold some property as a private citizen).
     
  15. Jan Doling

    Jan Doling Well-Known Member

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    Don't sign anything. Try selling it yourself for a few months. Even list it in the pennysaver paper at the 7-11.....you'll be surprised how many responses that alone will generate.
     
  16. Obser

    Obser "Mobile Homesteaders"

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    Another major consideration in any sale is Presentation to the Market. This involves primarily appeal of the property and marketing efforts.

    A little effort by the owner to make the property appealing can pay big dividends in price and in reducing the time it takes to sell.

    Buyers aren’t looking for headaches unless the price is dirt-cheap. Obvious defects should be resolved if possible (and unobvious defects should be disclosed).

    Marketing effort is the responsibility of the listing agency or of the FSBO seller. A simple “For Sale” sign is the entire effort in many cases. Elaborate presentation on the Internet and in brochures is involved in other sales. Most real estate marketing is somewhere between. It is important to select the right level for the property.

    It is surprising how little effort some agencies put into selling property – and how much others are willing to do.

    Negotiation is another factor in real estate sales (all the nitty-gritty of the transaction). Face-to-face negotiation between seller and buyer can be difficult or it can be a pleasure, depending on the people involved. Many people are not particularly good at negotiation, others are better than many professionals. Some think they are good.

    Paperwork is always a consideration. Depending upon state real estate law, the volume of paperwork required can be daunting. It should be handled competently by the listing agent (if listed) and/or by the title company or attorney (depending on local practice). An item that someone forgot to include or cover can be a deal-breaker or a real problem later.

    Everything must be spelled out very clearly in the contract of sale and in the deed.

    A survey is often required. Not all surveyors are created equal. Ask the title company which surveyor produces the fewest problems. Surveyors’ prices can vary though usually not greatly. It pays to ask. The surveyor’s work load and schedule can be important (and can delay a closing).
     
  17. gobug

    gobug Well-Known Member Supporter

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    It is in the best interest of the real estate agent to undervalue the property. Perhaps not to the extent the buyer would like, but low enough that it is perceived as a good deal and sells quickly. Data about the history of your listing is available to every agent. If you list it at one price then keep dropping the price, it is visible to all. Homes that sell quickly are not over priced, but correctly priced.

    I just had two agents visit and discuss the upcoming sale of my house. Both were negotiable on their commission. Both agreed to take an even lower rate if they sold it themselves and didn't have to share with another agent. Both appraisals came in lower than I thought the house was worth based on www.zillow.com and the improvements I made. (Rural properties may not have realistic prices on the site, but it is a wealth of data for urban areas.)

    I informed both that I intended to try to sell FSBO for a month before I would list the property. Both had several good suggestions on what I needed to do to finish getting the house ready.

    One interesting thing I learned is that the house should be 100% ready before it goes on the market. People will not come back to see if you have finished the preparation, they just cross it off their list. Summer is the best time for sales.
     
  18. fordy

    fordy Well-Known Member

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    ...............Appreciate all your helpful responses friends . I've decideD to just get a "paid" appraisal as soon as I'm thru with my painting and whatNot . I guess , in a way , I was alittle afraid it wouldn't Be as much as I thought it should be but Atleast I'll know that my asking price is not too high or low . thanks , fordy... :)
     
  19. MarleneS

    MarleneS Well-Known Member

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    Just for the record: Realtor is a title given to someone who belongs to an organization of Real Estate Agents who have agreed to follow ethical guidelines. What most of you are referrering to as a Realtor is a Real Estate Agent -who may or may not belong to said organization.

    You may not also know that Agent depends on who is being paid by whom. When you list your property the thing most Real Estate Agents go for is an exclusive listing. Which means, you will pay the agency they work for a specific commission, no matter who actually sells your property. Six or seven percent may seem like a high price to pay when you are the seller who is required to pay the commission. This 6 or 7 percent could end up being divided between the Listing Agency which may have an Agent and a Broker and the Selling Agency which may also have an Agent and a Broker. All of whom may or may not have had something to do with the actual finding a buyer for your property. When your property is being shown to a prospective buyer make note of how they are referred to by the Real Estate Agent -- if he/she is your listing agent or selling agent...if they refer to the buyer as "their" client(s), of the buyer refers to them as "their angents"-- you may have legal recourse -- the "client" is who pays their commission.

    It does not happen often but sometimes a buyer will actually have their own Agent who they have agreed to pay to find them a property which to purchase.

    Sorry this is so long Fordy -- my only other advise to you is to have your property appraised by someone who only does appraisals for a living, the best being someone who is associated with lending institutions in your area. (Does the appraisal work for banks and such.) In the very least, you could look at an MLS book - which is not likely without having to deal with an Agency - or one of the free listings books often available. You can then physically go look at the property and compare it to what you have to sell -- adding up for things your property has that the other doesn't and subtracting down for things the listing your property doesn't Do this with atleast three properties which are as close to being just like your property as possible-- not really good advise but it's free.


    And by all means - in the very least have an attorney advise on any paperwork which you will be liable.

    Hopefully the real estate commission of any concerned states will not fine or arrest me for giving real estate advise without a license, I think I'm in the clear as long as no money changes hands.

    Hugs
    Marlene
     
  20. terri46355

    terri46355 Well-Known Member

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    I sold my first house by word of mouth. I let the title company do all the legal work and everything worked out fine. I bought my current house the same way.

    Now that I am ready to sell my current property, I tried to sell it by placing a sign on the highway, but most of the people were casual lookers. I recently listed it with a FSBO realtor. He charges 2% fee to put it on the MLS, FSBO websites, and in the local FSBO magazine. If another realtor finds a buyer, he/she gets 2.5% which makes the commission 4.5%. This is still a savings over the normal 6-7%.

    If you list with a FSBO realtor, make sure that you give them the names of the people who said they wanted to buy your property before you listed it with them. If the previous looker(s) actually buy it, you won't have to pay the commission.

    Good luck!