Posted on 08/21/2024 3:12:08 PM PDT by where's_the_Outrage?
No matter if the market is hot or cold, they still pop up: For Sale by Owner listings, otherwise known to Realtors as "FSBOs." These are houses put up for sale by the people who own them - without the help of a real estate agent.
Homeowners who eschew professional assistance can start the home-selling adventure on their own, but are often unaware of the DIY pitfalls. Here are the pros, cons, and everything else you need to know about these kinds of properties.
What to Know About FSBO Listings As a Realtor, I'm very aware of those DIY pitfalls. Take, for example, my neighbor, who has his home back on the market as a FSBO. Third time's a charm, right?
Jeff and Linda Brandt of The Brandt Group in La Quinta, California, have tried to help the guy with pricing and listing advice over the years to no avail. "Jeff told him a realistic price he didn't like," Linda explains. Now, the house is languishing on the market with a high price tag.
My neighbor has ignored the cardinal rule of home selling: realistic pricing.......
My neighbor did advertise on the big Z (Zillow, of course), but did not put a sign in the yard for drive-by prospects. His amateur room photos were dark and blurry, underscoring the marketing importance of compelling images. He then cemented his doom by warning agents off from bringing a buyer by - he insisted on representing both sides of the transaction. Unfortunately, most people won't be comfortable with that setup......
There are some sobering statistics to consider before planting the red-and-white "Home for Sale" sign in the front lawn yourself. Not only do agents avoid FSBOs
(Excerpt) Read more at msn.com ...
From the article: "I avoid FSBOs if I can," says Mary Pat Anderson with Home Smart Professionals in Indio, California. "Homebuying is complicated enough without having to deal with inexperienced, uninformed sellers."
As a buyer I had a agent like that. I found a house right where I wanted and well within my price range. So I made an offer without using her. The agent was then offended when I cut her out of the deal as she didn't find the house for me nor did we have a buyers contract. I had specifically told her to check out an area, she didn't.
Owners are also not legally obligated to tell you everything about the home, including the possibility that somebody was murdered inside or what people are noticing as to why they won’t make an offer on it.
You could be left with a huge repair bill once you own it.
Realtors have legal obligations to not hide anything from you that you want to know about the home.
If life has taught me anything, it’s “never trust a realtor.”
That’s nice.
To each his own. It’s not rocket science but how many times do people make stupid mistakes when they do something for the first time? I own a real estate agency and I don’t buy and sell my own homes without an agent. I just don’t want the hassel of dealing with open houses, my own advertizing, dealing with novice buyers and a dozen plus other issues. Just remember the old saying, a man who represents himself has a fool for a client.
It’s relatively easy after you’ve been through it a couple of times.
But most buyers fear/hate it...so you have to offer 2-3% to the buyers agent.
That beats 5-6% all day long.
Maybe $100/billable hour + advertising costs would be an equitable arrangement.
” Take, for example, my neighbor, who has his home back on the market as a FSBO. Third time’s a charm, right?”
Or take my neighbor, who sold his quickly, for a higher price than anyone else on the block expected, and and kept the 24,000 he woulda spent on commissions.
When my siblings and I sold my late parent’s home, we used a realtor that we had known since high school (40 yrs). She was just about to retire but agreed to help us with the sale. She was worth every dime we paid her at closing. She weeded out non-serious buyers, let us know things that needed to be done to increase the sale price, and found us a septic guy at the last minute to repair and certify the septic tank (for minimal costs). She got us through the check-list and kept us from panicking. Also, the photographer she used for the pictures was fantastic.
We sold the property to a young couple with a 6 month old son. They had been looking for the perfect place for their needs for almost a year and our place fit the bill. I think my folks would like them as they would remind my parents of themselves when they were young and just starting out. It’s a bit of a fixer-upper but a solid home overall and they are enjoying the place. The wife occasionally texts me with questions and even invited me to come pick blueberries after the sale.
Find a realtor with a good reputation and ask family and friends for a recommendation.
To me it never made sense that both buyer and seller agents made the same.
In a FSBO it’s very common for a buyer to get inspections.
“Owners are also not legally obligated to tell you everything about the home, including the possibility that somebody was murdered inside or what people are noticing as to why they won’t make an offer on it.
You could be left with a huge repair bill once you own it.”
They ARE required on a Disclosure Document to indicate any of over a 100 particular, listed defects and “anything else that could materially affect the value” of the home.
And anyone who buys a home without a professional inspection is a fool.
I’ve had realtors be honest with me. And a couple who worked with the seller to HIDE information.
most realtors HATE the competition from FISBOs ... period ...
that being said, there’s a type of realtor that will manage all the paperwork for both sides AND attend the closing FOR A SMALL FIXED FEE ... they represent neither the buyer nor seller, but act only as a facilitating party, shuttling offers back and forth, and if/when a deal is finally reached, they make sure title insurance is obtained, the paperwork for all parties is legal, and that all state and local legal requirements have been satisfied, such as any required inspections, radon inspection, etc.
i helped a friend buy a FISO house that way ... part of our deal was that the FISO seller agree to pay half the agent fee ... they were actually VERY happy to do that because they were otherwise pretty clueless about how to go about actually selling their house other than sticking the FISBO sign in the front yard ...
both the buyer and the seller made out like bandits by not having to pay exorbitant percentages to a passel of realtors, and yet the transaction went as smooth as silk ...
Most agents go a terrible job and are not worth an average of $30,000 to sell a house.
“Owners are also not legally obligated to tell you everything about the home, including the possibility that somebody was murdered inside or what people are noticing as to why they won’t make an offer on it.”
depends upon the state law regarding those issues and varies from state to state ...
Inspections have never discovered the material issues I have had buying homes. Never. Minor stupid crap, but never the important things.
There is no penalty for a seller not disclosing defects. None.
I agree with you about getting a home inspection.
The real problem with FSBO is this:
- You opt to sell it FSBO to save the realtor’s commission (~5%).
- The buyer knows it’s a FSBO and deducts 5% since he knows you’re not paying a realtor.
The FSBO seller saves nothing but has to put up with all the hassles of the sale.
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