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October 9, 2009
FSBO Ground Rules
I want to sell my apt FSBO. Brokers have asked if I will be allowing (buyers) brokers. I am undecided. One said I would not have to give her the full 6%!! I was under the impression that a buyer's broker - if we allowed them - would make 3% max. Is there a rule? could we open it to brokers at 2% commission? anything we need to do to make it official. Any advice helpful.
Comments
You can do whatever you want but the 3% will likely generate more traffic.
Be prepared for any broker to try and pull a fast one and slip you a contract for more than what you stated and get all huffy and pissy about it. They are not to be trusted for the most part
Posted by: daveinbedstuy at October 9, 2009 10:25 AM
Number three: never trust no-bo-dy
Your moms'll set that ass up, properly gassed up
Hoodied & masked up, shit, for that fast buck
she be layin in the bushes to light that ass up.
I'm with DIBS.
Posted by: moreteasir at October 9, 2009 10:40 AM
Agreed, do not depend on the honesty of a broker. I would suggest you prepare your own fee agreement and have all interested brokers sign it. All commissions are negotiable and the more they make the more responsive they will be. Make sure you keep a list of exclusions in case they bring a buyer you have already met with. If this is your first time spend a few hundred dollars and get some legal guidance.
Posted by: edifice rex at October 9, 2009 10:40 AM
I've sold FSBO very easily before -- in a very different market. I think it's easiest for everyone involved to go NO BROKERS. Brokers will tell you they have clients to come over at any time. They will raise price 3% and then throw it up on NYTimes.com. Try to up the commission. Sure, they may bring more traffic, but I think in this day and age that people do most of their own legwork.
Posted by: Ringo at October 9, 2009 11:01 AM
hello all, and natalie, I also wanted to sell my apt, with FSBO, it is small but very nice one bedroom in the heights. I was wondering if there are any suggestions outside of craigs list and NYTIMES that are useful guides, thanks!
Posted by: justpassing at October 9, 2009 11:04 AM
Propertyshark has giant listing of all open houses and homes for sale.
I agree with Ringo. I can't understand what the broker really does sometimes. My husband and I do all of our own homework, and love to plan open house tours on Sundays for ourselves. Sometimes it feels like a hobby, really.
We are fully aware of anything and everything on the market that might be of interest to us, within days of listing. Losing the commission fees on both ends, while using a trustworthy attorney and home inspector seems to be the way to go if you can. Could potentially save tens if not hundreds of thousands of dollars.
Am I missing something?
Posted by: Nokilissa at October 9, 2009 11:31 AM
I am not sure why, having foregone the advice and services that one would receive by retaining your own RE agent who represents your interests (e.g., advice on pricing, staging, repairs, open houses schedules, etc), a FSBO seller would think of fronting the cost for buyers' brokers who are not providing any significant services to you (and have no obligation to do so).
Posted by: Boerumresident at October 9, 2009 12:12 PM
Firstly, all, thank you so much for all your responses. My only thought in offering the commission is whether or not their presence will significantly drive traffic. I'm not sure how much traffic a nytimes online listing alone will generate. I bought without a broker (and the sellers brokers was so stupid and useless it was ridiculous - in fact, she was in Nappa when we saw the place with the owner, slowed down the process, and was deemed to be "the most useless broker" our lawyer had seen, yet despite this, she got 6% commission just for listing it on the nytimes - she didn't even have her own site). I'm happy to do research myself, but i'm not sure if it's norm or the exception.
Posted by: natalie at October 9, 2009 12:22 PM
As a broker, I would say 3% is standard for an open listing. If you want, depending on the advertising you're doing, you can tell (not that they always listen) brokers they can bring buyers by but not to advertise the listing for the first month or so to see how it goes.
If the traffic is not optimal, then give them the green light to advertise.
As for who trusts who: Most brokers would gladly accept a signed open listing agreement at 3%, ironically, it's the owners that feel uncomfortable signing anything.
In spite the sentiments of other posters about the usefulness of brokers, yes - many are waste of space but the plain fact is: many if not most buyers work with brokers that have already separated the serious and qualified from the “hobbyists” and “browsers.” It's the only way you will get full exposure to the market. That's why I co-broke ALL my exclusives, believe me - I don't look forward to paying a buyer's broker half my commission but I understand it's in the best interest of my seller to get the maximum exposure possible.
Posted by: Crownlfc at October 9, 2009 1:11 PM
FSBO is a no brainer if a seller is willing to dedicate some time to show the property. Very highly confident that available technology will suffice for market penetration (i.e NYT website, Craigslist, etc.). This is exactly the technology that broker's and agents use. You might be better served receiving early advice from a profesional and objective real estate advisor. There is a fee for the professional services associated with this advice but it will save you a ton of money in the long run (i.$500,000/3%/6% = $15,000/$30,000 to broker or agent to be in "Nappa". Frustration well understood. A sound real estate advisor who specializes in your given area of real estate (cooperative/condos in your instance) or other areas will also present information and questions of beneficial interest that may add some additional value and potential savings to the sale and other future purchases or conveyances. Most professional real estate advisors have a profesional license and strong real estate background in areas of the real estate industry (real estate finance, real estate law, accounting, architecture, engineering, development)along with the necessary market knowledge within each specialty; far beyond a NYS Broker License or NY Sales Agent License. Moreover, you can seek and receive advice from the professional real estate advisor that is objective and NOT self-serving since no commission is involved. If you are not willing to do the physical showings, there is always another solution.
Posted by: foulplay at October 9, 2009 1:48 PM
My husband and I sold our place in Bed-Stuy FSBO in Nov. 2007. (We put it on the market in July '07.) When brokers approached me, I took down their information and told them I would contact them if we felt we needed more help. I think most buyers are using the NYT and craigslist and if you're savvy about it you can do just as good a job as the brokers. We had a good amount of traffic and a couple offers right away. But I was ready to work with a broker I liked if things got too slow for us on our own. Glad we didn't need to! I wouldn't pay more than 3%. In this market, you might even be able to negotiate 2%. All they're really doing is bringing someone to your door.
Posted by: Kate at October 10, 2009 9:58 AM
We sold our place FSBO (this was 2 years ago, so a slightly different market). I would recommend going it on your own first (if you're okay showing the place, talking to potential buyers, etc.) and then working with a broker if it isn't moving. I found that there were many benefits to NOT having a broker. When buyer's brokers approached, I would tell them I am not paying a commission and that if I change my mind I would get in touch. You may wish to contact brokers BEFORE you sell so you can get their assessment (we told the brokers who came that we plan to FSBO, at least for the first few weeks). As long as you are upfront with them, you can still get some good advice, and possibly, be convinced their services would be worth it to you. But, I would not work with brokers until I've done a few open houses to see how much traffic/interest existed. NYTimes & Craigslist were MORE than enough as far as advertising. Good luck!
Posted by: slope2009 at October 10, 2009 9:36 PM
Brokers are great if you live out of state and need someone to sell a place for you. I've known a couple of people who did this and were very happy.
Posted by: mopar at October 11, 2009 11:51 AM
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