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September 14, 2006
FSBO Gives Up, Hands Keys Over to Broker
As the market weakens are fewer sellers going to go the FSBO route? This question occurred to us as we were perusing the Douglas Elliman website yesterday and came across a listing for 273 Prospect Place. The address rang a bell so we searched the Brownstoner archives and discovered that we had featured it as an Open House Pick back on August 4th when it was a FSBO. Presumably the seller was unable to move the place on his/her own and decided to let a pro try while keeping the price the same (with the obvious result of a lower net price post-commission). Have you heard of other examples recently of FSBOs throwing in the towel? By the way, there's an open house at this place scheduled for this weekend.
273 Prospect Place [Douglas Elliman] GMAP P*Shark
Open House Picks 8/4/06 [Brownstoner]
Comments
223 Clermont was a HOD on July 26, 2005. It was a FSBO listed at $2 million in the NYT.
223 Clermont was also an Open House Pick on March 10, 2006. Corcoran had the listing and reduced it to $1,950,000.
Recently closed for slightly than ask.
Posted by: ItAWrap at September 14, 2006 10:15 AM
We are selling our place now and the change in the market was definitely one of the reasons we didn't go the FSBO route.
Posted by: Anonymous at September 14, 2006 10:20 AM
I went to the OH for this house last weekend. It's very nice but the problem is not that they tried to do it as an FSBO but that they are asking $150,000 too much for it. It is 16.5 feet wide. Lower it to 1.5mm and it will go.
Posted by: west at September 14, 2006 10:27 AM
It never ceases to amaze me how deluded some sellers are. If an overpriced house that is for sale by owner doesn't sell, the owner panics and hires a broker for five or six percent. The first thing the broker does is lower the price, because the sellers were asking too much money for their 16.58x40 townhouse on Prospect Place between Vanderbilt and Underhill to begin with.
If they had just lowered the price when no one was buying, they would probably have ended up netting more than selling with the broker, paying a commission, and still selling for a lower price.
Posted by: Shahn Andersen at September 14, 2006 10:30 AM
I think it's all about price now. I still see correctly priced FSBO (apts mostly) going quickly. But you reach and you get nothing and then you get a broker and insist on similar high price, you still get nothing.
My advice is to get 3 brokers to price your place. Take the mean, reduce by 5%, and really WORK IT. You need to have a website, Times ad print and online, craigslist, flyers, emails to everyone you know. It is a little work but you'll sell it fast. And no broker is selling for the price they are telling you anyway.
Posted by: Anonymous at September 14, 2006 10:31 AM
Excellent advice. Someone was discussing 15 Lefferts Place the other day. That guy did it right. Great website. Priced fairly. It was gone in a week. And it would still go in a week in this market.
Posted by: west at September 14, 2006 10:46 AM
A guy across the street from me has given his FSBO to Corcoran, although I think the listing price is moving up (at least at first). I think he originally listed it at $2.1 or $2.2, had dropped it to $2.0, and I think Corcoran is going to list it at $2.1 again.
The FSBO wasn't the most complete effort I've seen: he was buying ads in the Times, but didn't have a website, etc. On the other hand, not everyone lives on the web like I do.
Posted by: Tim at September 14, 2006 11:44 AM
that's a shame. the owner had a whole conversation on the prospect heights message boards about why she wouldn't go with a broker and how she knows it's a fair asking price cause she had it appraised twice. but that was back when she first listed it, probably a month and a half or so ago. she did put up a website an everything, but i guess the market's not doing well enough?
Posted by: sylvia at September 14, 2006 12:08 PM
she is asking too much.
Posted by: Anonymous at September 14, 2006 12:45 PM
It's interesting that the price was based on an appraisal because I think the serious buyers are only looking at comps. e.g. Corcoran selling a 20ft wide four story a few months ago on St. Marks for 1.6. Appraisals are meaningless to buyers until it's time for a mortgage. Thanks to sites like this buyers are too educated to be fooled these days.
Posted by: west at September 14, 2006 12:50 PM
A couple months ago there was a discussion on the best streets of Bedford Stuyvesants, and I failed to copy the information. Could someone post that info. again? Thanks
Posted by: Nana at September 14, 2006 12:57 PM
there's a new FSBO at 314 Carlton Ave.
Open House 9/17 12 to 4.
There's an ad in the NY Times and craigslist.
Posted by: Anonymous at September 14, 2006 1:26 PM
I like the guy who says you should ask 3 real estate agents into your house just for their pricing feedback and then sell on your own. What a dick. I'd love to know what you do for a living, douche bag...
Posted by: Anonymous at September 14, 2006 4:52 PM
Mind your manners, dude.
Posted by: west at September 14, 2006 5:07 PM
they shouldn't offer the service if they don't want people to use it.
Posted by: Anonymous at September 14, 2006 5:12 PM
The Corcoran St Mark's Ave listing for $1.6m hasn't done any favors for anyone in Prospect Heights trying to sell a brownstone. My understanding is that it was deliberately under-priced at $1.6m because a) the owners had to sell in a hurry, and b) the brokers thought it would result in a bidding war. Both worked and the house sold for over ask. But ever since people on this site have been quoting it as the holy grail of what houses in PH are worth. Certainly prices are coming down and it's an interesting stand-off we're seeing between sellers who have gotten used to a certain appreciation and buyers who don't want to over-pay in a cooling market. There's a lot of wishful thinking on both sides. But what helps the sellers is that there are never enough good brownstones available in the most desirable locations.
Posted by: NeoGrec at September 14, 2006 5:21 PM
brokers are consistently sending mailers advertising "free market appraisals".. what's wrong with asking them to do that?
it gives them an opportunity to market their services, and if the fsbo doesn't work, they will probably pick the person who seemed most professional, knowledgeable, etc.
Posted by: OE at September 14, 2006 5:57 PM
NeoGrec--Don't you think uncertainty over Atlantic Yards factors into the equation too? There's been a lot of turnover in Prospect Heights recently and one would imagine at least a few of these people want to get out before construction begins, for better or for worse.
Posted by: west at September 14, 2006 7:17 PM
Shana Anderson- you need to learn what owning a property feels like than maybe you would understand the words that are written here. Stop blogging and go to work.
Posted by: anon at September 15, 2006 8:26 AM
I was thinking these same thought earlier this week, and one of the commenters on my blog suggested that people who's homes grew greatly in absolute value would still be inclined to get a broker in order to maintain that value, accepting the 5% or 6% commission as a necessary investment to protect a much larger chunk of cash. People who own homes which didn't appreciate as much (say, $20k instead of $200k) might prefer to go FSBO in order to save, because the commission might cut into the original value of their home. This probably won't matter for a New York Brownstone, but then, it might.
Posted by: Anthony Floriani at September 15, 2006 9:34 AM
show me a person in NYC who owned an apt or house for the last 3 or 4 years that didn't appreciate 200k+. even a studio would get more than 20K over what they paid for it.
Posted by: Anonymous at September 15, 2006 10:26 AM
I work in real estate Anon 8:26. That's how I know the sellers are deluded.
Posted by: Shahn Andersen at September 15, 2006 1:30 PM
We are seeing this happen nationally. I dont understand why so many people think it is so easy to sell one of their largest assests in their life by themselves. Hire a PRO and stop wasting time!
Posted by: New Condos at September 16, 2006 2:44 PM
Ok this is not directly related to a brownstone house but i need some help. Today i looked at a new construction home a block away from Tompkins Park. The list agent works with Filmore and told me that the owner was asking 739,000. I got to the house and the agent from Filmore was not there so the owner showed me around. I must say that i was impressed. The first thing that you notice is the ceiling on the first floor i would say it's about 20 feet high. The house has 9 bedrooms and 5 baths with a finished basement. Ok lets get to the conclusion i brought up the question of price with the owner and he told me 799,000. what would be a good offer price considering if i went with him he does not have to pay 5 to 6 percent commission he would to filmore.
Posted by: Solomon Shearman at January 4, 2007 5:25 PM
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