For Sale By Owner

[doggerham]

Since I didn't want to hijack the thread on real estate commissions, I thought I'd start a new one with my questions.

Does anyone have any experience doing FSBO, or one of the FSBO-services like buyowner.com? How does that work in terms of the marketing and the legal work? What are some of the pros and cons? What about companies that offer a flat fee commission?

Any experience sellers info would be greatly appreciated. TIA!

Amy

[Sarah428]

Amy,

Last year we sold our house FSBO and bought a FSBO house. We used paperwork from when DH sold a previous house FSBO so getting paperwork wasn't an issue for us. I may still have them daved on our home computer if you'd like to see, I'd have to check.

My aunt is a realtor and helped us a little so we didn't hire a lawyer but the people we bought from had a lawyer go over all our paperwork.

We didn't list with a flat fee company, we did our own advertising (picture ad in paper, yard sign w/ fliers). We had friends who went w/ the flat fee companies but all 3 couples ended up being able to sell on their own and didn't get much of anything (besides a MLS listing) from them. A MLS listing isn't critical in our small community, word travels fast when a house goes on the market.

[mrswaz]

My parents have been doing a FSBO to sell their house. They went with a flat fee company so that they can get the MLS listing- and they easily get 100 hits a week. They paid just $200 for the lifetime service, though they have to do the work and pay for any advertising other than the website listing. They're happy with it so far.

One thing I would warn about FSBO is to make sure you have in writing somewhere that you will not pay a buyer realtor commission for sale of your home. Buyer Realtors are hesitant to show a FSBO home in the first place, but I have heard of sellers getting a bill for the buyer's realtors commission, so just amke sure you have that base covered.

[Sarah428]

One thing I would warn about FSBO is to make sure you have in writing somewhere that you will not pay a buyer realtor commission for sale of your home.
Yes! We had in our paperwork that the buyer was responsible for their realtors commission. Our buyers actually came back 3 days later and we worked w/ them w/o their realtor.

I will add that getting a MLS is important in most communities so do take that into consideration.

[funnybone]

A few around here have sold FSBO using one of those BUY OWNER or FOR SALE BY OWNER companies. Both near us ended us selling to couples looking with a realtor (and relocations) but they were willing to work with a realtor and offered a flat fee to the agent. There is one listing now with one of those companies and they have a "realtor welcome" sign. Our neighborhood is large and get a lot of relocations as well, so there are always houses for sale. Also, they all list on the web too, which really is important these days. I think the one couple said it only cost them about $400 to list on www.realtor.com . It took them longer to sell, buy they said they would do it again, but then again they probably saved about $40,000. Not bad.

[boisewinesnob]

We have our house listed right now with a company that does a flat fee. We had it listed that way for about 3 weeks and then we found a house that we really wanted in the city we're moving to, and so changed to MLS. With this company that is a 4.5% commission. Still better than 6% and the buyer's agent gets their 3% so they are willing to show our house.

Our neighbors directly across the street from us sold their house with this same flat fee company and never had to go the MLS route, but they had lots of time to do it and were in no hurry. They did eventually sell it that way, but it took about 3-4 months.

A lot depends on your neighborhood. We had a specific neighborhood that we wanted to be in in the place we are moving to, and DH would drive around there all the time to see if there were FSBOs. We would not have hesitated to make an offer on one if we'd have found one for sale that way as that neighborhood is REALLY desirable.