Posted on 04/14/2025 11:24:25 AM PDT by where's_the_Outrage?
When Jill Langen decided to list her Clarkston, Michigan, home of 25 years for sale last month, she did it without the help of a real estate agent. Seven days later, she had an agreement signed with a buyer and her home was off the market.
Langen’s decision to go it alone isn’t typical among America’s home sellers. Just 6% of home sales last year were for-sale-by-owner (FSBO), an all-time low, according to an annual report by the National Association of Realtors, the trade organization that represents over 1.5 million real estate professionals.
However, some homebuyers and sellers may be looking for alternatives to the traditional real estate agent model after the standard commissions were challenged in a series of lawsuits in 2024 that led to changes in industry practices.
Langen, a 61-year-old higher education administrator, said the industry changes were “very much” on her mind when she decided to bypass a Realtor. Even after new rules for Realtors were enacted last year, most home sellers still pay a commission, averaging about 5% to 6% of their home’s sale price. Langen listed her home for $515,000; a sale at that price with the help of a traditional Realtor might have cost her between $25,750 and $30,900 in commission fees at closing.
For some, working with a Realtor may be worth it. Langen and other home sellers who tried the FSBO route said it takes a significant amount of time — and homework — to successfully sell your own home. And the typical FSBO property sold for $380,000 compared to $435,000 for agent-assisted home sales last year, according to data from NAR. Real estate agents have pointed to this data as evidence that selling a home with a professional results in higher profits.
(Excerpt) Read more at msn.com ...
And the typical FSBO property sold for $380,000 compared to $435,000 for agent-assisted home sales last year, according to data from NAR. Real estate agents have pointed to this data as evidence that selling a home with a professional results in higher profits.
Of course they would say that - with no evidence to back up their claims.
Significantly more likely (and I speak of a 30+ year serial home buyer/seller) is that people with lower-value properties very often look to put more value on money and less on time & effort in selling their home.
I sold my first house without an agent, but I did have an atty review all the docs.
I have sold houses with realtors too, the last one I may get money from the class action lawsuit about real estate fees whenever it is settled, but still I made the decision to use a realtor so whenever and whatever it is just bonus money for me
Most states for RE transaction forms. Hire an RE attorney to review the contract. Most RE agents don’t do enough work to earn 6-7% (or half).
In a market where homes sell very quickly, with many buyers submitting offers, you would think an agent would reduce their fee. Why should they get a 5 percent commission for selling a house within a day or two?
I used a standard sales form I got at Staples on 2 homes. For buying a home I will use a realtor. But I insist on paying a flat fee like $5k.
assuming one can figure out what their property is worth, a good option can be an agent who handles the details of the sale for a fixed price ...
such an agent will have the property listed on the MLS, facilitates whatever State inspections are required, and handles all the closing paperwork necessary to bring the sale to a close at the title insurance office ...
often the agent acts as a neutral party, and simply ferries offers and counteroffers back and forth without advise or comment until the seller and buyer reach agreement on a final signed contract ...
aside from the MLS listing, usually the seller handles the selling part themselves, including additional advertising, arranging open houses, and conducting requested walk-throughs, though different kinds of fixed-price agents offer different levels of service ...
the paperwork and/or inspection requirements are often ridiculously complicated and voluminous in some states, along with terrible legal consequences if incomplete or incorrect, so it pays to have all of that handled by an experienced agent ...
Some of the biggest liars I ever came across were realtors. They’re right up there with used car salesmen.
BEWARE
Commissions were 3% until recently. people are fools to agree to pay 5-6.
Rec property is worse. We sold a cabin a couple of years back. I used a friend who was a realtor who did it for 3. After it was listed other RE firms tried to poach me. They wanted 25%!! F*** realtors. Some States make it nearly impossible to sell it yourself.
How do they do that?
In 1981 I bought a home FSBO. Paid 37,000 for it. Sold it a year and a half later for $45,000. A 21.62% increase.
The seller should have used a realtor, but oh well. It worked out for me.
Good plan. Never trust the seller's realtor to work in your best interests.
Before the internet explosion we were basically forced to use agents to get on the MLS, that was by far the best way to advertise.
And I’ve seen instances were agents really made a difference such as getting buyers financing approved and walking them thru the process.
And I can acknowledge situations where I would need an agent, such as selling property when I lived over 600 miles away.
But if you have bought and sold a few times, using FSOB could be a good 1st option. Such as you might have a neighbor that wants a new house in the area, and putting out a for sale sign could catch a quick sale.
My last sale I used an auction company just to get rid of the house I had bought and sold 10 times.
“Commissions were 3% until recently. “
Buyer plus seller commissions have been 5-6٪ for ages.
Of course you shouldn’t. They have a fiduciary duty to the seller.
In 1983 I bought a new home in a new development from the agents who worked for the builder. The agent I used when selling my old home acted as my buyers agent. I’m not sure she did anything as the sales process was non negotiable on a new construction except buyers did get to pick colors, flooring and etc.
But the builder paid her a commission. I’m not sure how much.
In almost every real estate transaction I have been involved in where there was a realtor involved, I had to hold their hand every step of the way to get the deal done. A few earn their commission but most just chase listings. Not a fan.....(Full disclosure: I was a real estate appraiser for a number of years. That may have slanted my opinion!!)
“but most just chase listings.”
because getting a signature on paper normally yield half the commission.
When I bought my last house a realtor friend acted as a buyers broker and I signed a contract with him.
When we went to look at properties he would announce that to the listing agent.
I did not realize prior to that ALL real estate agents are working for the seller unless you specifically sign a contract with one to work as a Buyers Broker.
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