FSBO

appletinibella

We are currently listed with an agent for a few more weeks but can't afford the real estate fees.... we got a few offers but we need to FSBO (for sale by owner) in order to break even... anyone have any experence??? any tips? thanks ladies!

ali26

My parents have done this a few times, but always when the market was really hot.  I'd be hesitant to try it right now unless you know of someone personally who wants to buy it.  Two reasons I'd prefer to go through an agent are 1: mortgages are hard to qualify for right now.  At least with an agent there's usually some preliminary screening required.  Unless you make people show a preapproval or something you could end up wasting time talking to and showing people your home who really can't afford it anyway.  

2: not sure about where you are, but in my area the market is still very saturated with more homes for sale than buyers.  And due to foreclosure/short sales several are still listed below market value.  Since a buyer doesn't have to pay real estate fees why wouldn't they work with an agent to weed out the good homes from the bad?  Plus if you FSBO your home isn't listed on the MLS which is what most people search.  

The one positive I can think of is that it seems like investor types tend to look to buy straight from owner, so maybe you'd get a cash offer.   You probably know this, but any offer you received through the agent cannot be pursued without them for a certain timeframe after the contract expires.  

 

What percentage for a fee did you sign on for?  You can sometimes negotiate a lesser fee, especially if the listing agent ends up also being the selling agent.  I think I'd try that first.  Also, would you ever rent it?  I know several people who've had success with that lately.  I am so underwater on my condo that if we were to move now that would be our only option.   

appletinibella

we negiotated 5% and will turn on to be 10,000. This is not including what we would have to owe on our mortgage because we will have to pay the balance out of packet. we have to do everything we can get out because we are in a 1 bedroom with a baby. we can't rent out and buy our own because of student loan debt. we wouldnt be able to get another mortgage. to our advantage, condos generall do well around me when they FSBO. 

 with an agent we had several offers but had to decline because we couldn't afford the end payout (that includes a real estate agent).  

there are websites that give you a MLS when you FSBO but you have to pay.  i know to market in papers, in our community and locally.. 

kendra316

We tried it in our over a year long struggle to sell our condo and we got nothing. Not one bite. We decided to just use the realtor and take the hit. We had to pay the entire fee OOP and then some. I cringe everytime I think about it. 

But we at the house we have and are glad we did it. 

rblucy

I would consider how busy you both are and whether you have the time to commit to FSBO.  It can get expensive to keep posting ads, plus you're going to have to give up a lot of time to show your place (ideally, if you can get people interested). Even if you have to take a bit of a hit on the condo, remember that you're getting a decent deal on a house as the trade-off.  Better to sell a condo lower and buy a house lower than when both are higher.  

appletinibella

Thanks ladies! I am so undecided because the market hit is hard. It also doesn't help that our condo doesn't except FHA anymore!!! 

sugardumpling

I have no advice but wanted to wish you luck.

appletinibella

Thanks:)

ELF4321

If you list on the MLS and offer a commission for buyer's agents, like 2%, you might still be able to get some traffic from agents in addition to buyers who are going it alone.  Not sure if that works with your finances or not, but I've seen that done.  I'm sure many agents still won't want to work with an un-represented seller, but it might increase your buyer pool at least a little.

appletinibella

thanks everyone. because we need/want to get out before the fall we are going to stay with an agent. a friend of ours is going to help us and sell for a lower commission. we just have to save a little more! thanks for the info/advice.