<p>Vlad, how many houses have you bought and sold?</p>
<p>Sometimes, in some markets, FSBO can make sense. Here are some questions to ask yourself. Are you willing to pay MLS fee to list it? Are you willing to show your place to strangers? Are you ok with hearing people diss your house in front of you, laughing at the carpet color, paint, kitchen, etc.? Would you be willing to offer 3% fee paid to a buyers’ realtor (if you don’t do this, you would be pretty much limiting yourself to a subset of realtorless buyers). Do you have an attorney to review the documents?</p>
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<p>There is a balance in this. Buyers tend to overestimate how much it will cost to fix/do something. I fixed up 14 houses/rental properties for sale in the last 8 years as part of my brother’s estate (not myself, obviously hired people, but have done this a bunch of times).</p>
<p>Here is what I am doing to my house (painters just left today!);</p>
<ul>
<li>Inside and out painting. Nothing extreme about the colors (inside we used Antique Ivory, Antique White, and Luminous White 
). General recommendation is go pretty neutral. Outside is a light gray with dark green trim, which matches the pine tree woods behind our house. Again… not controversial. They are solid staining front & back porches, too. Went with the same company for both and booked well in advance, got a discount.</li>
<li>I had the landscaping cleaned up. Took out some plants & weeds, put barrier and river rock in places that didn’t have it yet.</li>
<li>Finish the inside wood floors. Needs to be done every 3-4 years anyway, will do at the last minute.</li>
<li>Repair the cracks in the driveway.<br></li>
<li>Fix a couple of smaller things. One stove does not work – will replace as soon as I have time, been too busy. Got a woodwork spot that was damaged sanded and restained (my painters did it when I asked them). Drain needs to be replaced in one bathtub, and there are a couple of “lazy” lightswitches to fix.</li>
<li>Leak in the basement. Ahem. Have someone coming to look at next week… hope I have finally found someone who can fix this, at least long enough to sell the place.</li>
<li>Getting rid of my stuff! Easier to show the house if I am still in it, and easier to move.</li>
<li>Right before showing - will have windows professionally washed, and I plan to hire a lawn service next spring when it is on the market so I don’t have to stress about that (usually I do it myself).</li>
</ul>
<p>Things I am on the fence about:
- Carpet replacement. Original from when house was built 13 years ago. Will get cleaners in and see what realtor says… I could be convinced. Won’t put in anything expensive, but a neutral replacement could spiff the place up a lot.
- Screened porch - some wood is rotting and screens are not tight/gapping in a couple of spots.<br>
- Shower fixtures are kinda yucky. Might replace them.
- Tile in a spot near the front door has grout that has come out. Don’t want to deal with regrouting… but again, could be convinced…</p>
<p>Thing I am not doing;
- Granite or fancy countertops. Mine are basic (Corian?) with cherry trim. I am betting realtor will suggest this upgrade. No intention of doing it.
- Fixing the crack & poor tile repair in the upstairs master bath shower. Tile isn’t made any more, it would cost thousands to fix. Someone else’s problem If they don’t want my house by the time they get all the way to that room, I figure it won’t make or break the deal. Will make it as clean as possible, and figure that item probably will result in a price reduction.
- Reroofing - Roof is wearing faster than it should… getting out before it needs replacing!</p>
<p>I would not recommend it. Tried it once with one house between realtors. Then listed it again with a different realtor. Market was not good at the time, though. H’s family just sold parents’ house. They had it FSBO for over a year with few lookers. Finally listed it, and got offers quickly. I think a lot of buyers do not trust FSBO. They think there may be something wrong with the house that you’re hiding, or that it will be difficult to do the paperwork–a lot of buyers are really nervous about the process (rightly so–biggest purchase of their lives in most cases) and don’t feel comfortable without a professional to guide them through it. We have bought 4 homes in 3 different states, and sold 3 of them. One of them was bought without a realtor --with a check and a handshake. Same house sold without a realtor–a rental house, sold to renters we knew/cash. We also bought and sold two pieces of undeveloped property. 3 of those 4 transactions were without a realtor. Still, I recommend a realtor for selling a house–unless you know your house will be snapped up immediately.</p>
<p>Sold our house in NY FSBO. Had about 2 or 3 showings and ended up with a very favorable cash deal - favorable to all parties because of the lack of realtor commissions. Me being a lawyer helped, I was comfortable with the legalities and paperwork. The buyer was even ok with closing in May and letting us rent back until we left in July. </p>
<p>I did work my butt off to clean and photograph the place, can’t remember the websites I listed it on. This was in 2008. Market was in a college town, fairly stable market (no big booms or busts generally). But I didn’t do any of the major upgrades the realtors (who we didn’t hire) suggested. As I predicted, we found a buyer who wanted to pick their own cabinets, counters, etc. We sold it for less than the realtor would have listed it for and we made more than we would have if we’d sold it at the higher price and paid the commissions.</p>
<p>A problem with FSBO is that the listing won’t make it onto the multiple listing service, which is by far the most effective marketing technique. FSBO might work in an extremely hot market, where desperate buyers spend their weekends driving around searching for houses which haven’t been snapped up. </p>
<p>There are laws about selling houses. The FSBO seller must become an expert on them. No thanks.</p>
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<p>None, that’s why I made no comment on any experience I’ve had buying or selling a house, instead making a comment about a mathematical reality. </p>
<p>Like @intparent, we also sold on our own, but it is because we really lucked out in that a mutual friend of ours and the buyers’ connected us. It was a coincidence, really. The friend was picking up his son from a play date and was admiring the house. I told him it was unfortunate because we liked it too, but we were likely to be moving. He said he had friends looking to buy in that neighborhood for years. The buyers had an agent and I can’t remember how she was paid. I think we paid some, since she did help out a lot in the transaction, but it was not even close to 3%. Everything went smoothly.</p>
<p>It’s best to have a Realtor and also a real estate attorney involved in any real estate transaction. It is too easy for a FSBO to shoot himself in the foot and suffer a painful financial wound.</p>
<p>Lots of people shop on their own… the MLS isn’t the be-all and end-all that it used to be. One of my neighbors is doing FSBO, and I just checked – the house shows up as for sale on Zillow. I have been condo shopping (just contemplating) in another city, and have used a few different websites. I see FBSO properties on them.</p>
<p>FSBO in our town recently got caught selling his house, that he’d collected full insurance settlement for sinkhole, to unsuspecting new buyer. The FSBO thought it was okay to not disclose sinkhole loss and it was buyer beware. The FSBO did no repairs on sinkhole house and pocketed the full face amount of insurance…he didn’t disclose sinkhole history and big hole existing under house to new buyer. Only problem was new buyer bought insurance from same Citizens Insurance company that had paid claim before and they picked up history with new policy…immediately cancelled the coverage and buyer was screwed… The FSBO is now in big legal trouble and the buyer got burned. </p>
<p>This all likely could have been avoided if FSBO had used a Realtor and real estate attorney selling his property.</p>
<p>Okay… honestly, who actually uses a real estate attorney unless it is a particularly complex transaction? A good realtor knows the ins and outs of disclosure (which is one reason to use one), and I wonder if the person who bought the house had an inspection done. But I think a real estate attorney is overkill for most transactions.</p>
<p>There are a lot of snakes, liars, and incompetents dealing in Florida real estate…sellers, buyers, sales people, title insurers, property insurers, lenders, escrow agents, new laws and ordinances…I want a real estate attorney looking over my shoulder any real estate deal I do. </p>
<p>Wow, so much to consider. While we’ve bought and sold many houses, we’ve never done it without a realtor. I think we will spend the winter/spring getting things spruced up, and give it a whirl. With a reputable escrow company, and some legal guidance from a friend, it might just fly. I will definitely have the house inspected so that WE know what needs disclosing/fixing. Being honest is not something I’d ever compromise…not even for some extra dough. Thanks again for all of the input…valid points for/against.</p>
<p>Let us know how it goes.</p>
<p>To address some of the concerns here: In my experience, the agent’s expertise in legal issues is very low – not worth paying for. </p>
<p>And you can now pay a fee to a nominal agent to be listed in the MLS. Online marketing is certainly within your control. </p>
<p>The biggest issue that I was concerned about when I considered selling without an agent was the possibility of the dominant agent in the market bad-mouthing my property. </p>
<p>We have one agent in my neighborhood who is far and away the most dominant player here. My house had problems – all disclosed – and this particular agent’s spin was critically important in my opinion.</p>
<p>Some have said that an agent has no incentive to maximize the sales price. Not true in my experience. The agent with all the biz in my neighborhood is the market maker – he is very very concerned with the comps. He owns several properties in the neighborhood and has done a number of flips. He sets outrageous prices – and gets them. </p>
<p>He’s my neighbor and I know him socially. He is very concerned with keeping values at top dollar. He was irrationally angry when a couple of neighbors did a trade and set values unrealistically low for tax purposes (thus screwing up the comps). </p>
<p>The supposed concern that a seller’s agent has no incentive to get top price is completely without merit in my experience. </p>
<p>But I have heard this particular agent bad mouth other properties in the neighborhood – usually random listings by some out-of-the/neighborhood agent. Truth be told, it’s affected my judgment of those other properties. That’s the bigger risk in going FSBO.</p>
<p>If you do go that route, there’s a way to indicate that you’ll pay the buyer’s agent’s commission. That’s crucial in my opinion.</p>
<p>I ended up doing a hybrid thing – didn’t list it with the agent but agreed to a 3.5% single-buyer listing agreement where the agent identified a single prospective buyer in a single-buyer listing agreement. The house immediately sold.</p>
<p>It is a very expensive house so the agent is making a very big chunk of change for virtually no work but I’m convinced he would have talked these particular buyers out of my place if it had been a FSBO. </p>
<p>It rankles nonetheless since the buyers are acquaintances-of-friends and there’s the sense that I could have done this deal thru our mutual friends. </p>
<p>On the other hand, I was prepared to list the place for $200k less than I ended up accepting from these buyers. So there’s a net gain despite the outrageous commissions. </p>
<p>I have bought and sold quite a few times in NY and NJ. I would be more inclined to do it without a realtor than without a lawyer. I would only use highly recommended lawyer too.</p>
<p>Buying my current house, years ago, a word of mouth sale, we used an attorney, no real estate agent. I’d not do it without a lawyer. Though FSBO is common in my area, it just seems prudent to use a lawyer. </p>
<p>I wonder if the use of a lawyer is a regional thing? West coast here, and have never heard of such a thing. Then again, the homes we’ve lived in (and the homes of family /friends) have been very average middle/upper middle class homes. No estates, or high end properties. Very intriguing, and adds another avenue to consider.</p>
<p>I think it may be regional, shellz. On another thread which tangentially includes discussion of a house sale, everyone who lives in the west has never used a lawyer, and everyone who lives back east always uses one. As has been pointed out on that thread, California has strong consumer protections in the law, so maybe that has something to do with it.</p>
<p>I love your avatar, BTW.</p>
<p>We decided to list our house this coming March, so we started the process of interviewing realtors and getting pricing suggestions, etc. We would never go FSBO because we’re just not comfortable with it. It may be totally fine for others, just not us. </p>
<p>We selected a broker and we started the process, then last week the realtor we chose said she had a buyer who was looking for a house like ours. She brought the family by, and they made an offer this morning. We’re negotiating, and I don’t know if we’ll come to a meeting of the minds. Nevertheless, I always see that kind of thing as something that makes the realtor commissions worth the price. </p>