If You are Tired of Outrageous Real Estate Commissions... Let's Dispel the FSBO Myth.
I'll show you how to Save Thousands of Commission Dollars by selling your property by owner.
You have several options when you sell real estate by owner; as a for sale by owner you can:
1. Sell by owner with no co-op to buyer agents.
2. Sell by owner and have a licensed broker or attorney write the contract.
3. Sell by owner and offer a buyer agent co-op fee.
4. List for sale by owner on MLS for a Flat Fee and co-op with a buyer agent.
5. List on local MLS for full service. Pay a discounted commission.
6. Sell on eBay and pay their fees.
7. Pay outrageous 6-7% for full service.
These are just about the only choices you have. I'll briefly outline the pros and cons for each option.
1. Sell by owner offer no co-op to buyer agents:
That's quite simple, you sell only to a for sale by owner buyer who is not represented by a broker. You are not represented by a broker so there is NO commission paid to anyone.
Pros:
You save commission dollars.
You maintain complete control.
Cons:
There could be contract errors.
You may not have state approved forms.
You are wide open to legal recourse later.
The contract may not be defensible in a court of law.
Inspections and contract deadlines may not be addressed.
It's hard to build trust with the buyer.
Suggestion:
My favorite is plan two. Hire either an attorney or a licensed broker to write your contract. It will cost you far less than a law suit later. You don't list with a broker. You don't pay big commissions so you save money and maintain control.
2. Sell by owner and have a licensed broker or attorney writing the contract:This is a smart economical way to go.
Pros:
The contract will be written on the correct forms.
Required inspections and deadlines will be addressed.
Terms are usually defensible in a court of law.
There is less chance of legal repercussions.
Builds confidence between you and the buyer.
Cons:
It will cost you a bit more money (it is well worth it).
You have to find a broker or an attorney who will write the contract for a
reasonable fee.
3. Sell by owner and offer a buyer agent co-op fee:
This is a good way to go except not all agents who have buyers will find you.
Pros:
You open the market to more qualified buyers.
A licensed person will write your contract.
You may sell quicker.
Cons:
It costs you more money.
The buyer is represented by an agent - You are not.
Suggestions:
Use plan two. Hire either an attorney or a licensed broker to review the contract and write a counter offer, if needed. Now you have someone looking out for your interest in the transaction. It will cost you far less than a law suit later. You do not list with a broker. You save money and maintain some control.
4. List on local MLS for a flat fee and offer a buyer agent co-op:
This is the best of both worlds. You remain a for sale by owner. You remain in control and you save half of the commission if the property is sold by a buyer agent.
Pros:
Greatly increased buyer exposure.
90% of the buyers buy through a broker, one of them could be yours.
You pay only half of the commission you'd pay for a full service and you get full MLS exposure.
You maintain the right to sell by owner to your own buyer.
Contracts will be on the correct forms if written by a buyer agent.
If you opt to pay for contract assistance your forms will be correct.
Agents will call you for showings and to present offers.
You maintain control.
Odds of selling quickly increase.
You will probably get a higher price.
Cons:
It costs you more money.
The buyer is represented by an agent -You are not.
Suggestions:
Incorporate plan two. Hire an attorney or a licensed broker to review your buyer agent contact and write a counter offer, if needed. Now you have someone looking out for your interest in the transaction. It costs you far less than a law suite. You still save money and maintain some control.
5. List for full service MLS pay a discounted commission:
This is the great game plan if you don't mind doing some of the work but want more representation.
Most brokers will negotiate on commission. If they won't... Find one who will.
Pros:
You have someone to review your offers, write counter offers and follow the transaction through to closing.
You still save money, though not as much as with a flat fee FSBO listing.
Your contracts will be on the correct forms.
Inspections and contract dates will be monitored more closely.
You're less likely to have legal problems after the fact.
Cons:
It costs you more money.
You lose some control.
6. Sell on eBay:
I know nothing about selling real estate on eBay; however I know it is becoming more prevalent. I am going to make some logical assumptions:
Pros:
You would save commission.
Cons:
There would likely be contract errors.
You may not have access to correct state approved forms.
You could be wide open to legal action later.
Suggestion:
At this time, I would not be comfortable recommending this choice.
7. Pay outrageous 6-7% full service commission:
This is still an option and many folks are still doing it.
Pros:
The broker takes over the sale.
You get a sign, MLS and various goodies.
Your broker will present offers to you.
Cons:
You pay too much to sell your home.
You lose control.
I could go on and on but I won't.
Good Luck Selling.
Copyright (c) 2007 Wee Dilts
