OT: For sale by owner ?
- Thread starter Plum Street
- Start date
No this is a fallacy. It costs the buyer zero to use a realtor. It's paid out of the sell side. Most active listings are for 3-6 months and then there are clauses that if the property is sold afterwards to someone who saw it X months later the realtor can still be compensated.
I will admit a lot of realtors are total clowns and the better ones have some arrogance but find someone who knows your area well or really has your best interest in mind. I own a boutique brokerage and interview a decent amount of realtors and hire maybe 10% of them.
People go direct to the sellers agent all the time but then he/she just represents you the buyer as well. It's called dual agency. My last deal of 2022 was a $1M deal where I represented both sides. That was my best pay day to date.
I think that would be fine but I wouldn't be using someone who did a bunch of deals in Elizabeth to buy in Piscataway for example. Those are the bullshitters I am talking about. They know zero about the town but will bs you all the way to the closing table.
Of course. You think all realtors are honest? I bought a condo in Hoboken from one of them. When I sold, I made sure my broker had a broker open house.
But say you’re born and raised in piscataway or Elizabeth. You know the neighborhoods, schools , politics etc. why do you need a realtor as a buyer as you probably know more ? Just go to sellers agent and work deal . If you’re a realtor selling a property , you just said it’s a a big win for that realtor . Everybody eats
Yuck. I never would work with a seller like that. Let the person do their job or don't hire them to begin with. Unless it's new construction or something very high end there is no reason for that.
You can do that but the price isn't going to magically drop. Instead of splitting the commission the listing agent gets the entire nut. So it does help you because obviously they want both sides but you also have to make sure they're working for you in addition to the seller.
In a competitive market this is tough because a lot of other people have realtors helping the buyers submit offers. You need to make sure all your ducks in a row (pre-approval, proof of downpayment funds possibly, etc) and then yes you can ask that realtor to represent you for that particular offer.
With the other thread consensus is we are not in a housing bubble . For sale by owner thoughts ??
I recently did it in a super hot micro market section of Toms River. It was a pita, but my wife is a decorator who had the house spotless for every showing and I’m a lawyer so the buyers had some respect for me. Sold the house at absolute top dollar and saved 90k in realtors fees. Negotiated 10k payment to buyers agent as part of the deal during the process, which was worth it. Otherwise, I’m certain buyer would have been steered elsewhere.
Many Realtors called me nonstop during the listing period to “help”. Lol. Many of them were condescending in their approach, particularly when house didn’t sell right away. Must say it was very satisfying to prove them wrong.
As others have noted above , it is very difficult to entice buyers agents to show your house unless they are promised some compensation. Be prepared to cut them in.
Many Realtors called me nonstop during the listing period to “help”. Lol. Many of them were condescending in their approach, particularly when house didn’t sell right away. Must say it was very satisfying to prove them wrong.
As others have noted above , it is very difficult to entice buyers agents to show your house unless they are promised some compensation. Be prepared to cut them in.
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anon_0k9zlfz6lz9oy
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Awful idea. Im a realtor and every one of my own houses ive sold, ive had listed and paid a commission.
In a market like this where bidding wars are regularly going 6-figures over ask, to sell fabo youre trying to “save” $25K on a $500K sale only to lose $100K. Youre net down very big
I sold homes in NC without brokers/agents, just an attorney ($500). Not exactly rocket science. Sorry if this offends the "professionals" on this thread, but hear me out. I did use a pro for my last home, as I was relocated already; our second home became our primary residence, a few hundred miles apart. She was terrific, helping to manage a few inspection fixes. Home sold in a couple days, with offers coming in immediately on listing. I was totally satisfied paying the 6% commission, due to my situation. But if I were onsite and had the time, I would definitely have handled it myself. Disclaimer: I did hold a real-estate sales license in NJ while a junior-senior at RU, although that had near-zero impact on my future decision to sell homes w/o an agent-broker. Tips for selling direct: 1. Know your property value via recent sales comps. 2. Get a pre-sale inspection and address and document issues. 3. Find an attorney. 4. Create a sales flyer and post handouts near curbside. 5. Consider "FSBO" channels to promote your property. 6. Consider offering a commission for buyers agents. 7. Be prepared to deal with the public.
Ok let’s plays devils advocate . Not everyone here is selling 6 figures above ask . This is rutgers and we are a proven very cheap fanbase Let’s say you’re an average rutgers guy and selling a 500k -600k house , you need some extra coin for football and basketball tickets (not donations because we don’t donate lol)…if you do what someone earlier in this thread suggested and offer 2.5 percent to buyer agent . You are saving a minimum of 1.5 percent. Assuming if you use a realtor today as a seller you are paying what minimum 4 percent commission.
That is some cost savings for average cheap rutgers fan , right ?
I will say this- when I have been buying- I stay away from FSBO...for many of the reasons you stated
Most are doing FSBO because they are cheap and also feel they can do just as well as a professional. In my eyes- tells me they also have done things around the house in the same thought process. Plus, when it comes to negotiating- they are often offended as you are picking on their work and also think they are usually the smartest person in the room.
Most are doing FSBO because they are cheap and also feel they can do just as well as a professional. In my eyes- tells me they also have done things around the house in the same thought process. Plus, when it comes to negotiating- they are often offended as you are picking on their work and also think they are usually the smartest person in the room.
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anon_0k9zlfz6lz9oy
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Thats even dumber imo. Homeowners have no clue how to properly drum up a bidding war, handle a bidding war, manage a bidding. Theyre net leaving money on the table.
ANYONE can sell fsbo, especially in this market. It takes a pulse to get a buyer. It takes a good agent to maximize your value.
Perfect example, have a friend who just bought a fsbo in Fairfield. He got it got $550K, my jaw dropped. I wouldve been able to sell it for $700K.
Put it this way, when I buy, I honestly try to only buy fsbo’s, why? You can rape and pillage homeowners who are dumb enough to try to sell themselves
On average, perhaps, across NJ's home-owners, FSBO may be a challenge. But, in context of this board and its community, your average RU grad with business experience can likely do just fine. Your secret sauce is a mix of ketchup and mayo. LOL.
I actually kind of agree with kyk on this, to a degree. While I think some people can handle their own property sale and do well, I also think most people (even smart people) are likely to get things wrong unless everything goes perfectly (in other words, if they're not lucky).
It's always possible to chose the wrong real estate agent and get screwed while coughing up the commission. But if the seller isn't competent enough to chose a real estate agent wisely, how likely is it that they'll not screw up the sale process in one or more ways?
Nah.... Other than a few DoD contracts I was involved in, NJ real-estate sales was the biggest racket I've ever personally experienced. That said, having a competent attorney involved will help eliminate missteps.
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anon_0k9zlfz6lz9oy
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Let me say it again, ANYONE can sell fsbo. Quite literally anyone.
You will be leaving money on the table though. The stats and data back it up and its not a little money either.
In this market especially. In a market like were in now, youd have to have stones in your head to sell fsbo.
I myself as a realtor, list my own homes when I sell them. I gladly pay out the commission because it’s worth it and I make more money that way.
Not that anecdotal stuff means anything because the data in itself is overwhelmingly pointing in one direction but the owner of the defunct forsalebyowner.com even when his site was at its peak wound up listing with an agent haha
PACWEST, ready to collapse next. Good luck young couples getting mortgages. No worries, Joey says the banks are solid and the crisis is under control. God help us.
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anon_0k9zlfz6lz9oy
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I do wonder if fannie ever gets involved on the resi side with direct lending as they do on commercial.
With rates this high, more banks are going to fail as deposit flight continues. About 4% to just throw your cash into a goldman savings account that takes legit less than 5 mins to open online
"... your average RU grad with business experience." But, point taken. LOL.You are basing this on people on this board???
Well, my wife is as close to God as you can get and she does mortgages, does that count? Lol and she can’t do anything
LOL, Nuns sell mortgages? Just kidding, so she gets it I'm sure. Well that shows you what this economy has in store for this young generation trying to get a new life started. I'm married since 1980, my soul mate, we dated 5 years and saved our asses off to buy and not rent,ever. Her Mom and I would always have this debate about how it was harder for our generation to a buy a home than it was for hers. Keep in mind, we closed on our 1st home a month before we were married, me at 25 her 22. She's always counter with they made $25 a week and I'd always counter with 85% of her generation were home owners and my generation had ownership numbers far below her generation. Fast forward to this current shitshow of an economy and I'd venture to guess this generation is lucky if they ever get to a 50% rate of ownership.
LOL this. I just flipped a house that would have sold FSBO for 500k. I listed it on the MLS, did the proper marketing and it's closing 10% higher next week.
It’s not for everybody. But, to say that you’ll leave money on the table is not accurate either. In fact realtors don’t care what price you get. 5% incremental is insignificant. They just need volume.
Wrong ! The secret is out. All pricing and closing information readily available for whoever wants it. If someone does the research beforehand and knows how to show and negotiate, no money need be lost.
In my case, all the realtors I spoke to said it was overpriced. But, I sold it without their “help” for the top price in my neighborhood. Much more than their listings sold for. That was 6 months ago and all sales since have been for less (using realtors). So it’s clear that I did not cost myself, rather it was a huge financial gain.
I am the first to admit a lot of realtors are pretty dumb but if you found a good one you most likely cost yourself money in this market. There are studies everywhere on this.
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anon_0k9zlfz6lz9oy
Guest
Haha once again, ANYONE can sell fsbo. Literally anyone. Thats not hard in this market. It is a fact that youre leaving money on the table tho. If you got one buyer willing to pay a price likely there was 10 others you can bid them against and jacked the price up.
Again, feel free to do it, it’s your prerogative but just know money was left on the table.
Yeah. I'd check on the sponsors of those "studies." I certainly understand that there are plenty of very capable sales professionals. But the basic challenge to the whole industry is that the fees are just too high for what's involved, opening the door for capable and motivated individuals to bypass the traditional broker approach to selling, or buying for that matter. I self-managed the sale of my home in Cary NC to an IBM procurement director 20 years ago. We both felt the same about the traditional sales channels. She did not work with an agent. Nor did I.