Selling a house/condo "sort of" by owner

[thebruce44]

I want to sell my condo. I originally purchased it brand new in the summer of 2007, right as things started to go bad. Luckily, I was able to negotiate the price down a bit from what others in my building had paid as it was becoming obvious the market was going downhill. Of course, I didn't realize how bad it was going to get, but point being, I don't think my place has lost nearly as much value as the area I would be moving to.

 

Still, I don't really feel like sharing 3% of the sale with a selling broker. Has anyone gone with a flat fee based brokerage?

 

They charge you around $300, give you a yard sign with their company name on it (so it looks a little more legit than FSBO), and then put your listing/pictures on the MLS (which includes how much commission the buyer broker will get so they don't boycott your house like they might with a FSBO). The number on the listing goes directly to your cell phone, so people call to schedule showings and I would just make sure I am not there but their broker is. If they don't have a broker, I will just hang out in the kitchen and make sure they don't steal anything.

 

With websites like Redfin and Realtor.com, I really don't see what selling brokers do exactly (and to a lesser extent buyer brokers). If/When my condo sells and I become a prospective buyer, I will just go on Redfin and pick out 15 or so places I want to see. I don't need an agent to pick places out for me like it was 5 years ago.

 

I know how to price it as 2 other identical condos in my building have recently sold. Once its on the MLS prospective buyers can find me and their selling agent can let them in with a lock box and show them around. I can clean it up and stage it myself. I'm in my late 20s but I have been negotiating big purchases for years so no fears there.

 

What am I missing? Paperwork? Can't a lawyer help me with that for a small fee? Any advise or experience? Has anyone gone this route or do they have something great to say about their experience with a selling broker?

[RightFieldCoder]

I just listed my house with an agent, so I can't help with the FSBO.

 

But I was going to buy a condo up in Wash Co. after it sells. Are you in that area?

[thebruce44]

No, I am actually near Chicago.

 

Why did you decide to go with an agent? How has your experience been so far? Have they done stuff that you couldn't have done on your own?

[Invader3K]

Can't a lawyer help me with that for a small fee?

 

This could actually be several hundred dollars.

 

I personally wouldn't go FSBO; but I'm somewhat biased. I personally know about a half dozen realtors in my town. My sister actually just got her license as well. So it probably wouldn't look too good for me to try and sell a house myself (not that we're looking to move right now anyway). YMMV.

[RightFieldCoder]

She has experience to set the price, get people in the door, paperwork, etc. I wouldn't know where to start FSBO.

[dadofandrew]

You can usually negotiate your agent's price down a bit, if you need to, especially if it's a relatively easy sale. That said, after you pay someone to do the p-work and the buyer's agent, you come out what, $2K ahead?

[thebruce44]

You can usually negotiate your agent's price down a bit, if you need to, especially if it's a relatively easy sale. That said, after you pay someone to do the p-work and the buyer's agent, you come out what, $2K ahead?

I figured I would be $5500 to $6000 ahead compared to a 2.5% commission to a selling agent. That would include paying for a MLS listing fee and a closing attorney.

[thebruce44]

She has experience to set the price, get people in the door, paperwork, etc. I wouldn't know where to start FSBO.

I am lucky that 2 identical condos in my building have sold so I have a pretty good idea on the price. I think the MLS listing on Realitor and Redfin is what gets people in the door these days. Paperwork, thats my main concern too so I would have to find the right lawyer. I am just wondering if people go with a Realtor because they don't examine all of their options and its just what you used to do to sell your house.

 

Anyway, I haven't decided either way. I was just hoping other people's experience in selling with or without a Realtor could help paint a better picture.

[chuckiehacks]

I've sold on my own twice, and once with a realtor. The time I used a realtor I was closer to the ultimate sales price than she was.

 

I'd call real estate attorneys to get an idea of their cost and what services they provide. Many title companies offer a "FSBO package" which includes title work, doc prep, filing, etc.

 

I worked in mortgage for years and am not a fan of realtors. There are good ones out there, but 90% of that industry is vastly overpaid for the service they provide.

[LouisEly]

You can usually negotiate your agent's price down a bit, if you need to, especially if it's a relatively easy sale. That said, after you pay someone to do the p-work and the buyer's agent, you come out what, $2K ahead?

Interview a bunch of independent realtors and say the deal is they get 1% or 1.5% to be the listing agent. Someone will take you up on it. It isn't a law that they have to take 3%. My buddy is a developer and just completed a 20-unit project and his agent is taking 1%; of course, that's based on volume of 20 units. But some young agent who just got their license is looking for a start in the business and will take you up on it; perhaps find a licensing school and have them advertise it to their class - here's a listing opportunity right out of the gate. The money realtors make on the transaction is secondary to the connections they try to make on open houses. So say they get 1% or 1.5% but can do as many open houses as they want. You get an agent to do the paperwork and can save a couple grand on the transaction.

 

Edit: Is it an option to rent the condo, or does it have to be owner-occupied? If the value has dropped significantly it might be better to rent it for a couple of years than sell it.

[dadofandrew]

Is my math right and this condo is going to sell for $225Kish? Must be the Chicago market.

[thebruce44]

Is my math right and this condo is going to sell for $225Kish? Must be the Chicago market.

More than that. I'm sure there are condos in MKE still going for $225 and up.

[homer]

Some friends of mine used http://www.zillow.com/ to list their home. I think they are tied in with MLS.

 

They had a really good experience. Only problem was that they had to be there for every single showing.

[thebruce44]

Some friends of mine used http://www.zillow.com/ to list their home. I think they are tied in with MLS.

 

They had a really good experience. Only problem was that they had to be there for every single showing.

Thats very similar to what I am considering, except I would use a lock box and let the buyer's broker show them around so I don't have to be home.

 

Similar to what others were saying about trying to get the commission down a bit, I found this site: http://www.hungryagents.com/ . You post information about your place and agents compete for your use. I might give that a try and see what some of the offers come in at. If someone wants to sell it for 1% or so, then it may be worth it.

 

[MHgb]

I think the MLS listing on Realitor and Redfin is what gets people in the door these days.

Just a heads up, I've never heard of Redfin. I bought a home 3 years ago without an agent and have been browsing listings the last year or so. It doesn't appear to be available in Wisconsin at all. If Redfin is limited in its areas, you're limiting your list of potential buyers to only people in those areas in which they advertise since to me it doesn't seem too popular.

 

I agree that MLS is important--people who search "the new-old fashioned way" by going to Coldwell Banker / Century 21/ etc. websites can still find your through their sites. Realtors can also find you easily for old folks who don't use computers.

 

It seemed like when I used Realtor.com in the past, I wasn't too excited about it. It seems to be better now, though.

 

For me, I think I would go the realtor route just so I can use their information/resources and push the headaches of the transaction onto them.

 

But if you're confident you can price it right and take the emotion out of it and sell quickly, then I understand trying to do it on your own. If you're priced high, difficult to get a hold of and cannot show the condo well or don't have it staged well, then you might be wasting some time since you might gravitate to a realtor later on.

 

Just some thoughts. Hope it helps.

 

 

[thebruce44]

I think the MLS listing on Realitor and Redfin is what gets people in the door these days.

Just a heads up, I've never heard of Redfin. I bought a home 3 years ago without an agent and have been browsing listings the last year or so. It doesn't appear to be available in Wisconsin at all. If Redfin is limited in its areas, you're limiting your list of potential buyers to only people in those areas in which they advertise since to me it doesn't seem too popular.

 

I agree that MLS is important--people who search "the new-old fashioned way" by going to Coldwell Banker / Century 21/ etc. websites can still find your through their sites. Realtors can also find you easily for old folks who don't use computers.

 

It seemed like when I used Realtor.com in the past, I wasn't too excited about it. It seems to be better now, though.

Thanks for the great advise. It is appreciated.

 

If I can ask, you can't get onto Redfin.com at all? But you can use Realtor.com?

 

As an aside, both of those site just pull their listing from the MLS. You don't actually upload anything to the sites. You just need someone with a broker's license to put your listing on the MLS (thats where the flat fee broker for $300-400 would come in) then it gets populated on all the major buyer search sites, as well as in the MLS for buyer brokers to look through and give to their clients. So I think I could reach everyone a Realtor could.

 

I don't mean to come down too hard on selling brokers. I just really am having trouble seeing much of an advantage still. Its a big first step, and admittedly a little scary, but every day that passes I think I can do it on my own more and more.

[LouisEly]

Redfin only lists for certain areas. It is available in Chicago (and most of CA) but not WI.

 

Realtor.com is OK - better than it used to be, but I know there are plenty of places that for some reason don't show up on Realtor.com. Not as many as there used to be, but it is not a complete listing of what is available. Realtor.com also does not filter out pending sales and may not tell you if it is a short sale, which can waste potential buyer's time.

 

The advantage of an agent is both time and protection. If you don't have the time (or if your time is worth a lot, such as owning your own business/self-employed), and it also can protect you legally - if something goes wrong or if a mistake is made the realtor/broker is liable and not you. If you do it yourself you are liable for any mistakes you make. Then you have to factor in how much an attorney costs to review everything. Really, it depends on how much your place is worth - if it is worth less than $200K it probably isn't worth doing it yourself because the net amount you save isn't worth the risk. If it is worth significantly more than that, yes, you can save a lot of money.

[MHgb]

I can get onto Redfin, it just doesn't have any listings for WI, as LouisEly mentioned. If I'm moving to Chicago, I wouldn't think to look on Redfin because it's not marketed here--so not many people will know about it. That's all I'm saying. So you're limiting your exposure to only people who have heard of Redfin. It may be really popular in Chicago like you think it is, but it may also be really unpopular outside of Chicago. So just referring back to your comment about most people using Realtor or Redfin, I would tend to disagree. But yes, if they pick up on MLS like many realtors do, then you're covering more bases that you would if you didn't list via MLS.

 

If you're a 40-hour-a-week single guy needing something to do on the side, then by all means, research the heck out of it and sell it yourself.

 

If you're schedule is hectic and you want to spend your spare time with your wife and kid(s) without headache, get a reputable realtor and discuss commission with them.

 

I don't think selling is as easy in this market as you think it will be. Unless you're offering your condo up at a bargain price.

 

But good luck whatever you decide to do.

[thebruce44]

Thanks for the clarification. I don't expect it to be easy to sell by any means. I also don't have a ton of free time. Like I said before, this is just something I am considering and hoping other people's experiences can sway me.

 

I see what you are saying about Redfin, I didn't know it wasn't available for WI. Thats too bad, its a lot faster than Realtor.com. However, if I were to go the route I am thinking about, I would still be in the MLS and still get to potential clients not on Redfin or Realtor.com. When I purchased the place 3 years ago, I didn't go online at all. My buyer broker printed out about 30 places for me to look at on the MLS and I went though and narrowed them down. That system would still work as long as I am listed in the MLS.

 

Again, thanks for all the great advise.