Realitor vs. FSBO, what did you do when you sold your home?

[AKcharger]

With our house going up for sale I'm leaning towards FSBO with offer to (grudgingly) pay the buyers commission. The option however is having a realitor do it all.  Now I have no problems paying for services but with our house in AK 3% = $12,000 EACH to two agents and seems wildly excessive. I mean that's an annual salary for many people!

since I'm sure some of you have delt with this...what did you find? Advice? 

[skip68]

The problem with fsbo we had was all the tire kickers that wanted us to carry paper or they weren't pre approved.   You don't want buyers that are pre qualified, you only want buyers that are pre approved.  Realtors in general only bring pre approved buyers.   A good realtor can also save you from expensive mistakes.  Like the things a seller is responsible for and how much it cost. You'll also get better exposure and better quality of buyers with a realtor in general.    If you're savvy and have the time you can do it yourself if it's a simple property.  It costs around $500 to list your house on MLS, with a realtor it's free.  You can list it on Zillow for free and some other sites.     Be prepared for the majority of buyers asking for contributions of 3% give or take.   You may have to raise the sale price to absorb the seller contribution.    

[NHCharger]

Never thought I would say this but Skip has some good advice.
So are you saying your house in Alaska is worth 400k and the realtors split a 6% commission, or it's worth 800k and they split a 3% commission?
Is the commission rate set by the State? If not you can try to negotiate the rate down or see if the realtor would agree to a flat fee. Of course the more you chisel them down, the less hard they will try.

[AKcharger]

And who said no good advice here on DC.com!

- $400K house so 3% ea! total of 6%...$24,000

- Non-approved buyers....hmmmm didn't think about that 

- buyers asking for the 3%... That's kinda rude but I guess if they're non-approved they don't have the $$$

- Time...I was going to price the house right and I was expecting it to go quick, but if it doesn't I'm in trouble. I was going to spend the month of June up in Alaska to prep and Sell then head back to Florida

Well, if I don't hear anything strong for the FSBO, I may rethink my plan 

[twodko]

My  .........use a realtor. Save a lot of YOUR money, less headaches
and the realtor carries all the responsibility for making sure you have the
right buyers seeing your property.

[charger Downunder]

Wow total 6%.
I list and sell houses here in Australia and I get 2% all up. If i tried to charge 6% i wouldn't have a chance to get the listing.

[sunfire69]

Skip,
Down here in the lower 48 sometimes you can negotiate that fee...but bottom line if you NEED to sell your house and you can't be there to act as your own agent the the only thing you can do is bite the bullet and turn it over to an agent....they have access to MLS and other advertising outlets you don't ...unless your market is SUPER hot......better to let them do it...
also remember that 3% doesn't only go to the agent the broaker they work for will take 1.5 to 2% leaving then the rest....

[skip68]

Very true.   Thinking you can sell your house in 30 days and get what you want for it needs a few things. 

#1.  The market better be red hot and or the price of your property needs to be way below market value.   

#2.  Plenty of exposure.   

#3.  NO surprises.   Foundation or structure issues, termite damage, plumbing or electrical issues and so on.   

The house should be in move in ready condition and eliminate any potential problems that can cause the house to fall out of escrow.   
Honestly I think you'd be smart by having a realtor handle this for you in your situation.   
Sunfire is right but don't worry about the broker fee.  It's not on top of the realtors percentage.  The brokerage fee comes out of the realtors percentage.    Have you looked at comps around you?   Good luck.   

[RallyeMike]

Never thought I would say this but Skip has some good advice.

Say what you will about Skip, but I am now hanging my toilet paper with maximum efficiency 



It seems like a lot of money to use an agent, but you are also buying time, peace of mind, and other assurances with the dough.
Unkless you have a trusted buyer already in mind, if you go FSBO you will likely earn every penny of your savings over using an agent.

Do they have discount brokers in AK?

[AKcharger]

I got in touch with one realitor in Anchorage...I spoke to them last year, they want 5% split between two agents and if they do everything it's 4.5%...not AS bad 

[skip68]

That's not bad at all.   

[b5blue]

  At one point many of my relatives were realtors, with two brokers. Here's what I know, it really matters WHO you pick if using them.  "Real" realtors work their butts off for you to earn their commission. Just like hiring a contractor or going to a mechanic, check backgrounds and get references. Look for any issues in the past online and in public records because if/when you sign with one it's a commitment. Ask how they will present your listing and be clear of ALL your expectations to them in great detail.
  AK may be an unusual market, do comparison checking to see how long and how much similar homes went for before signing. I'd even check for postings on FB and talk to your neighbors up there, they may have a friend who wants to move near them? Take tons of pics and video when up there to document the condition and ask are they going to be concerned about details like keeping the grass mowed and the home looking fresh? (What will that cost if things drag out?) What is your recourse if you list and nothing happens? Despite the fact that you are selling, in essence your buying a service to sell. Over the years I'd heard various comments and concerns good and bad about everything I've mentioned from them. I hope some of this is useful. 
Best of luck no matter what you decide!     

[64dartgt]

I was a salesperson for a while and into real estate investing.  It comes down to what you need and, to be frank, the property.  Pricing a house properly based on an understanding the market is important.  Most people think that putting a sign in the yard that says FSBO is all it takes.  If the market is hot and the house is beautiful in an ideal location then perhaps FSBO will work.

My advice.  Rent a storage unit and clean your house out removing at least 25% of unnecessary furniture so buyers can walk around.  Then clean the house up very good.  Do the same to the outside.  Trim the hedges, clean up and stuff outside, etc...  Do any necessary painting in light neutral colors to   cover up any stains, dirt or existing dark colors.

Then look in the papers for brokers who are associated with properties listed for sale.  Brokers tend to specialize in listing properties or working with buyers and you want someone who likes to list.  Bring in 2-3 to get a property value assessment.  That should be free, but be careful that you watch for someone telling you what you want to hear.  Hop on Zillow.com and look at properties which have sold recently in your area yourself.

Now if you want to do FSBO you are ready to put your sign up.  If you don't do these steps first and throw a sign up before you are ready the only interested parties that usually will call are brokers hungry to snap up a disgruntled listing from yet another failed FSBO attempt.

Good luck,

Bob

[4cruzin]

I have been a real estate broker for almost 25 years . . . If you have any questions, let me know!  Help if I can . . . .

[AKcharger]

BLUE- good points all, a flashy web site doesn't mean a good salesmen, I did meet and talk to the guy last year but didn't really "check him out"...good advice!

64- that's exactly what I feared happening, that I'd do all this work, spend all this $$$ and run out of time and have to get a Realtor anyway. I understand the importance of MLS and most important pricing the house right!

Cruzin - I'll take you up on that! Look for a PM thx

P.S. The Realtor said market should support $405-415K so if true that will more than pay his commission and earn some more $$ as I was going to list for $389k 

[64dartgt]

Look in the papers and local RE booklets for brokers who seem to have a lot of active listings in your area and call one of those if you decide to go with a broker.  If you cold call the office you may get a more inexperienced broker.  Experienced brokers avoid office phone duty like the plague.

[Hard Charger]

in-experienced salesman work harder, longer, and more honestly.

most busy sales people have an in with some one and that's why they are busy. does not always mean they work harder or better.

busy sales people I know have family members in high places, a close friend who is a politician, builder, lawyer, corporate executive, tight with there office manager and get handed the business.

the biggest hassle selling your house yourself is you loose objectivity when dealing with people. you need to show the house honestly. Spend the time qualifying the people you talk to.

If you have a difficult property in a difficult market than you will need the experienced salesman to close the deal. you need to be prepared to pay the buyers agent commission. buyers agents control the buyers so you need to deal with them.

[AKcharger]

Well, back from Alaska. Full-price offer for the house 40 hours after listing $414,900. There's no-way I could have done a FSBO, the prep/cleaning and minor repairs used all my available time and that's with hiring painters and flooring people! plus now come all the fun stuff of inspections and appraisal so need someone on the ground up there.

Thanks for the advice guys!

[skip68]

Wow, that sounds great.  Good for you.       
Inspectors are supposed to find issues and don't sweat it unless it's something major.  There's no such thing as a perfect house.  Just remember that.   

[b5blue]

Hooray for you!!  Sounds like you hit a home run! 40 hours....remarkable, that indicates you nailed it spot on in every detail.

[AKcharger]

Well the market is Smokin' hot up there now, that coupled with the house prep'd and perfect made it easier. Not over joyed about selling it, we love that house but it's what we need to do...kinda like how a kid feels when leaving Disney World.