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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] FSBO vs realtor Posted by Steve-CA on March 07, 2004 at 11:49 PM In Reply to: Well if you put it THAT way posted by Vic on March 07, 2004 at 10:46 PM : : I think you are missing the point. He's not just looking to cut out the listing agent, he doesn't want to pay Buyer's Agents either. This is why I'm calling him cheap. Sorry if that seems rude, but why would you not want someone to bring you buyers. Just add 3% to the price you are looking for. : If the house will sell quickly at what I think is fair market plus say, 3% for an agent, then I don't have a problem with it. I just don't want to take that out of my cut. : If an buyers agent can sell it for that premium, more power to him, as long as I get what I think is fair. It didn't occur to me to tack on a commission amount to the price. :-) : You still jumped the gun on calling me cheap. You don't know a thing about me or my situation. : Vic Vic, I recently sold a house in San Marcos, multiple offers recieved in 9 days, using a listing realtor (6% total commissions paid). (BTW, houses that sell in one day are generally priced too low either due to seller's motivation or an incompetent listing agent.) It bothered me to pay comissions, as I also knew the house would sell fast, but here's some things to think about: The market determines at what price a house sells, not the seller. Otherwise why not list your house for $1,000,000? To maximize what buyers are willing to pay for your house, you need to maximize the number of potential buyers who view it. A buyer's agent is only going to show properties that are offering a commission, typically 3% but you may get away with 2.5%. A buyer's agent is also going to help manage the transaction, at least from the buyer's perspective, as they only get their comission when the house is sold. If you are not willing to pay a buyers agent, be prepared to implement the plan outlined above, and spend at least $2500 (classified ads, signs, legal advice, etc. aren't cheap.) Also put a dollar value on your time if there's other things you'd rather be doing. Another way to look at it: You say your house is worth $450 to $470K. Would you rather have a sales price of $450K FSBO or $470K and pay a 3% commission, which would net you more? Assuming all other transaction costs would be the same in each case (title insurance and escrow fees are similar at all major title companies in San Marcos and Escondido, btw if you are looking to maximize your net, why not have your buyer pay all transaction costs also?) If you are confident in your FSBO skills and have the time, then go for it. Keep in mind, when you FSBO, most buyers know you're not paying any commissions and expect a percentage of that savings to be discounted in your sales price. (Buyers are also generally looking to not spend any more than they have to, even in a hot market.) Otherwise they'll buy the neigboring similar tract house that's listed on the MLS for the same price as yours and be assured of getting an agent's representation and advice. - Steve Follow Ups: Thanks for that well thought out reply Vic 9:18 AM, 03/08/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : I think you are missing the point. He's not just looking to cut out the listing agent, he doesn't want to pay Buyer's Agents either. This is why I'm calling him cheap. Sorry if that seems rude, but why would you not want someone to bring you buyers. Just add 3% to the price you are looking for. : : If the house will sell quickly at what I think is fair market plus say, 3% for an agent, then I don't have a problem with it. I just don't want to take that out of my cut. : : If an buyers agent can sell it for that premium, more power to him, as long as I get what I think is fair. It didn't occur to me to tack on a commission amount to the price. :-) : : You still jumped the gun on calling me cheap. You don't know a thing about me or my situation. : : Vic : : Vic, : I recently sold a house in San Marcos, multiple offers recieved in 9 days, using a listing realtor (6% total commissions paid). (BTW, houses that sell in one day are generally priced too low either due to seller's motivation or an incompetent listing agent.) It bothered me to pay comissions, as I also knew the house would sell fast, but here's some things to think about: : The market determines at what price a house sells, not the seller. Otherwise why not list your house for $1,000,000? : To maximize what buyers are willing to pay for your house, you need to maximize the number of potential buyers who view it. A buyer's agent is only going to show properties that are offering a commission, typically 3% but you may get away with 2.5%. A buyer's agent is also going to help manage the transaction, at least from the buyer's perspective, as they only get their comission when the house is sold. If you are not willing to pay a buyers agent, be prepared to implement the plan outlined above, and spend at least $2500 (classified ads, signs, legal advice, etc. aren't cheap.) Also put a dollar value on your time if there's other things you'd rather be doing. : Another way to look at it: You say your house is worth $450 to $470K. Would you rather have a sales price of $450K FSBO or $470K and pay a 3% commission, which would net you more? Assuming all other transaction costs would be the same in each case (title insurance and escrow fees are similar at all major title companies in San Marcos and Escondido, btw if you are looking to maximize your net, why not have your buyer pay all transaction costs also?) If you are confident in your FSBO skills and have the time, then go for it. Keep in mind, when you FSBO, most buyers know you're not paying any commissions and expect a percentage of that savings to be discounted in your sales price. (Buyers are also generally looking to not spend any more than they have to, even in a hot market.) Otherwise they'll buy the neigboring similar tract house that's listed on the MLS for the same price as yours and be assured of getting an agent's representation and advice. : - Steve Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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