First time home seller, advice on FSBO, MLS, etc?

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jasonrecite25
Posts: 29
Joined: Tue Apr 11, 2017 1:16 pm

First time home seller, advice on FSBO, MLS, etc?

Post by jasonrecite25 » Thu Aug 10, 2017 5:53 pm

Hi everyone, first time home seller here that is having trouble wading through the multitude of home sales services out on the web. I'm having trouble finding a good central resource for someone looking to DIY. Hopefully the below is enough information to get a feel for our situation and why we're wary of paying for a service we "think" we can do ourselves. Overall looking for advice on the best path to take and if there are any good online sources out there that aren't a potential rip off.

Background:
--My wife and I both work from home, have ample time to do showings on weekdays and weekends. We keep a clean home that shows well.
--I feel we can do really good marketing with professional photos, flyers, signage, demonstration of value, pros/cons, etc.
--My wife and I both work in customer facing and client serving professional roles that I think positions us to present the home in a positive way to buyers, i.e., clear communication, non-emotional, open/honest, polite, friendly, welcoming, thick skin to negative comments. We also know the home and all relevant details in and out (utilities, taxes, school districts, all facts about the home, etc.)
--We own the home outright, no mortgage.
--The home is in Northern CA in a more or less track home style area so it is pretty easy to run comps and land in the ballpark.
--The house is fanatically maintained, so would be extremely surprised if anything in a home inspection caused an issue. Build in mid-2000s so not very old either.
--I recognize I need to be on the MLS.
--We live in a seller's market, homes are going for full/asking and don't sit for more than a few days.

In doing a non-traditional realtor controlled home sale, I'm thinking I have 3 options:

1 - Go FSBO, stick a sign in my yard, do the showings, marketing, etc. and hire someone to execute the paperwork after an offer is made. How do I find someone to do this, is this a lawyer of some type that I can pay a flat fee or do I need to learn about all of the paperwork and processes on top of hiring someone to help? Are there services that can get me on the MLS? I saw this company called MLSmyhome.com that might be useful to get on the MLS?

2 - Go quasi-FSBO, negotiate like a .5% commission for a realtor to drop of a sign that I post my yard and handle the paperwork after I get an offer? Would a realtor entertain this, is .5% in the ballpark or will they laugh at me?

3 - Study up, get a realtor's license and then DIY... can't be that easy?

I realize that this may be a sensitive topic to those in the industry, my goal is not to offend, but learn how I could do this myself and what my options would be. It is the same DIY spirit that causes me to DIY my finances, my car repairs, etc.

ASpenderInRecovery
Posts: 52
Joined: Sat Jul 29, 2017 9:17 am

Re: First time home seller, advice on FSBO, MLS, etc?

Post by ASpenderInRecovery » Thu Aug 10, 2017 6:32 pm

jasonrecite25 wrote: 2 - Go quasi-FSBO, negotiate like a .5% commission for a realtor to drop of a sign that I post my yard and handle the paperwork after I get an offer? Would a realtor entertain this, is .5% in the ballpark or will they laugh at me?

3 - Study up, get a realtor's license and then DIY... can't be that easy?

I realize that this may be a sensitive topic to those in the industry, my goal is not to offend, but learn how I could do this myself and what my options would be. It is the same DIY spirit that causes me to DIY my finances, my car repairs, etc.
Research discount real-estate brokers or partial commission real-estate brokers in your area. I bought my home through a reputable partial commission broker in my area and was rebated 2% of the purchase price 2 days after closing. The same broker went on to help some friends of ours and they had a great experience. After seeing that I recommended the same deal for my parents who sold their home when downsizing and were super grateful they went with a discount broker as they got the full service for less, had the process navigated for them, and sold the home for what they wanted in the desired time frame.

Lindrobe
Posts: 398
Joined: Fri Dec 26, 2014 9:35 am
Location: Mishawaka, IN

Re: First time home seller, advice on FSBO, MLS, etc?

Post by Lindrobe » Fri Aug 11, 2017 6:22 am

I have sold 2 homes by owner and 1 with a discount (3% to seller agent only) compay that basically just got house on mls. I have also purchased a lot by owner. In all of the fsbo's we negotiated sales price then paid $300 to $500 to have a contract wrote up. In both of the fsbo houses, a realtor wrote up the deal. With fsbo lot, we had an attorney write up the contract. All went equally well, but attorney was cheaper than realtor.

Call some attorneys and ask them how much they would charge you to write up a contract. Then list house on Zillow and Redfin (if you have Redfin in your area, I don't).

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jfn111
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Location: Minnesota

Re: First time home seller, advice on FSBO, MLS, etc?

Post by jfn111 » Fri Aug 11, 2017 6:45 am

The first thing you have to decide is if you're going to offer a commission to the Buyer's Agent (Selling Agent). This is usually somewhere between 2.5-3%. The next step, if you want MLS access, is to shop around for a flat fee limited listing company or agent. You can find companies that will put it on MLS for as little as $100 or so.
As far as the contracts, you can use an RE Attorney or pay an agent a flat fee to work as a Facilitator for you.
The same goes for Closing. You can hire a Title company or find an Attorney that handles closings also.
Side note, one of my out of state Investors just finished a rehab in his home state. The house next door was for sale so he threw a FSBO sign in front of the house. He got an offer the next day that he accepted. Commissions paid $0.

LEB1230
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Re: First time home seller, advice on FSBO, MLS, etc?

Post by LEB1230 » Fri Aug 11, 2017 6:57 am

I sold a house 3 years ago as FSBO. My plan was to stick a sign in the yard for 2-4 weeks and see if I had any interest from people just driving past and post it on a local community forum. When I posted it on the community forum I offered to the members that if they referred my house to someone they knew looking and they ended up buying the house I would give them $500 for the referral, that's actually what happen and how I got a buyer. I sold the house on the 13th day. I printed paperwork offline (same forms a realtor uses) and filled them out and the buyer and I both signed. I then contacted the local title company and dropped off the contract and the deposit check and they finished the process from there. Just showed up on the closing date and finished the deal. Was really quite an easy process. I personally think the only advantage to using a realtor when selling is that you get more exposure through the MLS.

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Shackleton
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Re: First time home seller, advice on FSBO, MLS, etc?

Post by Shackleton » Fri Aug 11, 2017 7:02 am

Just my experience, but the listing agent and/or seller are NEVER involved in showings beyond scheduling the showing time and giving the buyers' agent the lock box code. And I imagine that more than 95% of buys use an agent when purchasing.

I think you need at least a flat fee company to put it on the MLS and do paperwork for you. They may also schedule the showings and give you the feedback. Feedback is an important part of showings and I doubt the realtors give feedback to a basic FSBO that isn't using ShowingTime or similar.
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton

michaeljc70
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Re: First time home seller, advice on FSBO, MLS, etc?

Post by michaeljc70 » Sat Aug 12, 2017 9:56 am

I've sold 3 homes myself. If you want to seriously sell the home yourself, you need to have the time to handle the showings or have someone else to do it. Can you leave work in the middle of the day for a showing? People aren't going to conform to your schedule.

I used a service to put it into the MLS. It cost a couple hundred bucks. I offered 2.5% commission to the buyer's agent (which is pretty standard where I live). If you offer nothing, no realtor will bring anyone to see your house. Most people seriously looking for a home have a realtor.

You can try to put a sign in your yard and throw it on some websites, and maybe you will be lucky. It depends how serious you are about selling. Personally, I find most people that do that aren't serious/realistic about pricing and are just playing around to see if someone will bite. Likewise, most people calling up for FSBO are just looking around and may not be qualified or serious. The other side of this is if you are "lucky" you may not be so lucky. You are dealing with a much smaller population (people not using agents looking at FSBO) and may not get as good of a price thereby negating any commission savings. I had multiple offers on 2 of the 3 homes I sold and got over asking (after pricing it pretty accurately in my view).

If you don't have the time and don't want the hassle, you can use a discounted service that gives a rebate. Redfin comes to mine.

bluebolt
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Re: First time home seller, advice on FSBO, MLS, etc?

Post by bluebolt » Sat Aug 12, 2017 2:43 pm

I did an FSBO. Posted listing on Facebook (as a regular Facebook post) and had lots of interest from friends & friends of friends. Received offers from people with and without agents. I told the folks with agents (or their agents) that I would be comparing them with offers without agents, so they should make their offer competitive taking that into account. YMMV and this doesn't work well unless you're in a seller's market.

Showing was easy as most were on the weekends, but some were evenings. DW & I work, but so do all of the people looking.

Ended up accepting the highest offer from someone who didn't have an agent. Saved a bundle.

We both used attorneys, mine was present at closing.

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