Use a realtor or sell our home ourselves?

We are considering selling our home to move into a different school district before our children are in elementary school. We are in no rush, and have no immediate need to move, but I would be happy moving sooner rather than later. I just set up an appt. to meet with a realtor next week, but now I am considering doing a FSBO. I have not researched too much into it yet (yes, I do plan on reading just about anything I can find on FSBO's, just thought I would get opinion's here first!). My issue with using a realtor is that, with the market, we would actually take a few thousand dollar loss on our house b/c of the commission. We can afford it, and will gladly pay based on the deals we have been finding in the area we are looking into, but I would love to be able to use that money elsewhere. Thus, my inquiry into FSBO's!

My question is, what is your opinion on how FSBO's fair into today's market?? Again, we are by no means looking for a quick sale, but is it a waste of time in your opinion, or do you think it might be something to consider with our situation??

TIA!!

If you can find a good one, use a realtor.
It's not easy, most of 'em suck.

I've bought my fair share of FSBOs and every time the final price ended up costing them more than the commission they supposedly saved. Virtually any buyer with enough savy to know how to purchase a home from a FSBO will presume the commission you're saving is nothing but an excuse to low ball their offer that much more.

The bottom line is FSBO usually costs you more than a realtor's commission and you limit your buyer's market considerably because many buyers are afraid of FSBOs.

I was just in that same situation. (but I decided to not sell my house).

I was preparing to put my house on the market, and contacted a real estate agent who originally wanted a 6% commission. I negotiated and got her to accept 5.5%. For me, that would have been a commitment of just over $30,000.

I went all the way up to having the final walkthrough / inspection before having the huse listed on MLS. Then I bailed out at the last moment. I decided it really wasn't the right time to sell my house - because I didn't really plan enough for what would come next.

One thing to think very much about is the Residential Listing Agreement. Once you sign one of those, you will be committed to the real estate agency / agent - regardless of whether you later decided you'd prefer to sell your house yourself - throughout the "listing period". Read that document very, very thoroughly!!

Also, just an opinion, which could be taken with a grain of salt - don't sell unless you have to. And make sure you have a plan for where you will want to live. I had SERIOUS seller's remorse at one point - especially after I'd fixed up my house. Also, the market's just too unstable to make such huge life changing, expensive decisions.

After I decided to not sell my house, I realized that I wouldn't really wanted to have paid the $30,000+, because I honestly don't think that the real estate agents truly work hard enough to be entitled to that much money. I live in San Francisco, where it would still be relatively easy to sell my own house, or at least go with one of those discount brokers, such as RedFin or ZipRealty.

I don't think I would want to go the FSBO route, just because I don't have the time or resources to market my own house. But if I did, that would be my choice. My second choice would be to go with one of those discount brokers. They don't do as much for you - but it's easy for you to make up the difference yourself, such as writing up descriptions, making your house look good, and taking pictures with a digital camera.

The job for the real estate agent is to MARKET your house, and not to SELL it. Keep that in mind. The Real estate agent is not there to bring the buyers from her own network, but to network with other real estate agents who will bring you the buyer. The incentive those other real estate agents have is generally 1/2 of the commission. It's more to your advantage that they be paid a commission, than it is for your real estate agent to be paid the commission.

Most people who are serious about buying will be looking through listings on the Internet / MLS anyway, and already have a good idea of the location they want to live in (as do you).

And not to sound totally nasty about it, but real estate agents are all the same - out for their own best interest. Don't be fooled with the sweet talk and sales pitches. They will tell you ANYTHING to get your business.

Many people think they can do this, and they think that being a real estate agent is easy.

What they don't realize is that by not going through an agency, you have no access, nor any knowledge of, legal advice.

There are a million things that could come back and haunt you. Things from title problems, to problems with release of mortgage, to property transfer taxes, property taxes, unknown liens, all the way down to disclosure statements & transfer of deed.

If you go on your own, you will end up paying an attorney-a lot- to make sure you are protected and all is legal. You may have to pay a title company (as well as find a good one) and you will be 100% responsible for all advertising and the like.

Interview 2 or 3 agents, ask them exactly what their agency provides, ask them the things they do to protect the seller and ask what marketing is provided.

Personally, I would never buy a home from a FSBO as it usually means the house is way above market value AND I will have to shell out extra money for extra legal & closing help.

But that is me.

I suggest you find a good agent and then work your contract with them for a lower percentage by agreeing to go through them when you repurchase. You will tend to get a better price going through and agent and it will make up for what you pay them. Not to mention the added stress of doing it yourself.

If you choose FSBO, you might want to consider the option of temporary owner financing.

I'm all for you saving money, but let's face some facts up front - you don't have to move right now correct? Then don't put your house on the market. We have a tremendous oversupply now, and it will only cause you to take a lot less than your house may be worth. You would be beating yourself up for nothing and less money on top of that. So be smart, just wait until the economy turns around some and the housing market begins to see some gains instead of declining in values.

2nd why would you limit yourself in the market place by FSBO'ing it? When most folks use Realtors, because for buyers their services are FREE. So don't shoot yourself in the foot right out of the gate. Use a Realtor.

Its definitely a challenge to sell a home yourself, and the thousand dollar lose it very true and growing. (They are losing value so charging more for selling a home.) I would consider selling the house yourself, especially since the prices are so low for buyers. (My realtor took 7%!)

it depends how fast you want to sell. a realtor has the advantage of advertising on the MLS and encouraging other buyer's to see your home. If you aren't horribly anxious, your luck could be just as good by putting a sign in front of your house. Plus this will save you thousands of dollars in commission

I would be more interested in dealing with the actual owner myself...you keep your money. :-)

If your home has dropped in value you might try doing it yourself first, then you wont pay the fees.

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