For Sale By Owner...

[parallel]

... has anyone here ever put a house up for sale by owner? If so, did it sell? Are there any pitfalls to look out for? Is there any special process?

It looks as though I have a deal on the bigger house that we made an offer on, I am not exactly pleased with my Realtor's performance and therefore I will likely find another to list my current home. I have had several people tell me that I should sell my house for sale by owner, but none of those people had any experience doing so. School me on this if for no other reason that to make an informed decision.

 

[gunsmith11]

I dont have a clue but would like too

 

[morsecode]

I did it, but you still need a good lawyer to look over the braniac stuff. And a very good home inspector.

There's nothing magical about the process that absolutely requires third party representation. Assuming you've done your homework.

(oops..I read it too fast. Thought you were looking to buy, not sell)

 

[beemerrider]

Here are some things you may want to consider:
1. How much time do you have to devote to the process?
2. During a time of slow sales, can you afford to go thru the learning curve on your own home?
3. What will the cost of your "education" be to you?
4. Can you stay objective when a potential buyer says your house and taste "suck"?
5. Other than a sign in the front yard & Craigs list, how are you going to attract potential buyers?

If possible, maybe thru networking, talk to other homeowners and pick their brains on the above and everything else they did when they tried to or actually did sell their own homes.

 

[glypnir]

I tend to be suspicious of "sale by owner" houses. Often they do it because they've got something to hide.

Real Estate agents are not always princes (more often princesses, these days) of virtue, but they do provide a useful service.

And the long term ones actually do have some ethical bones in their bodies, generally.

Just remember that all the real estate agents nominally work for the seller, even the agent that you the buyer chose to work with.

Of course, they are really out for themselves.

 

[riptrack44]

Obviously it can be done but it's a real hassle. As previously stated, you'll need a good lawyer for title/deed research, etc. You'll to subcontract out state approved tests for termites, radon, mold/mildew, etc. on your property. There will probably need to be inspections for electrial, plumbing, foundation, etc. You'll need to be able to handle the 'tire-kickers', wheeler/dealers and the genuine interested parties. Research will need to be done on the ability of the interested parties to actually get their loan with a contingency of them selling their property. Interested parties don't usually operate during business hours. Expect some calls at very odd hours. I'm assuming the New Orleans area is not the easiest area to sell property after Katrina and all the bad press during and following the storm. Patience is a virtue and you'll need lots of it during these economic times. My .02 pesos.

 

[BarbC]

We bought our Virginia house that was For Sale By Owner. We bought it through our realtor, who owned the house next door. The house had languished on the market and we bought it way undervalued. Good for us; bad for them.

When we moved from Virginia, we listed our house and it sold in 6 weeks. Friends went the FSBO route and their house languished on the market for over a year.

A *good* realtor prices your house correctly, markets it aggressively, and networks with other realtors in the area to get the traffic flowing.

 

[Jeff423]

Lot's of times real estate agents - at least in our area, won't look at FSBO's because they aren't in the MLS.
My feeling is that if you are in a real hot sellers market FSBO might be OK but if not you are better off with the agent.

Jeff

 

[dennis40x]

Real-estate agents are the equivalent of used car sales persons. There maybe a good one but its like pulling teeth out of a chicken to find one. That said you're dammed if you do and dammed if you don't.

We purchased our present dwelling by "For Sale by Owner". We stumbled upon it by chance. If I were to sell this dwelling FSO would be my first approach. Your lawyer and your home inspector are required one to handle the legalities and the other to find discrepancies you need to address.

 

[tripledipper]

BarbC speaks the truth and nothing but the truth. My realtor is worth her weight in gold and I would recommend her to anyone. She has handled purchases and sales for many family members with knowledge and skill. Worth every penney of whatever commission she earned.

 

[roarindan]

might be my luck or maybe not.... when my mother passed I (we) went to a local realtor,he was my high school business teacher now retired, in a REAL small town.He did eveything as should be done from his point and the place was sold in 6 wks. to an older couple not married, but we held the mortgage.... well the fella dropped dead one day after about a yr of on time payments, the womans children and the mans children decended on the house packed up all their stuff (including finishing cutting the truck load of logs for firewood),and left they called the realtor and told him. this was Nov. and so we left the house dormant 'til spring, when we opened it up we found the people had only shut off the electricity,NOT
THE WATER!!! busted pipes, cracked the boiler!!

The realtor had a salesman that I've known since I was a kid, he said his daughter and son in law wanted to buy it he drew up the papers as rent w/option to buy (""'til they get their money together") well after 6 rent payments on time they started missing then the father/realtor salesman calls and says they're moving out,the husband has already gone!!. BUT...... hes got a couple that want to buy it!!! Womans folks life on the hill in back an she wants to be close to 'em.
This time I go to a lawyer and we discuss my run of bad luck I ask him if he KNOWS this salesman and he gets my drift and says ""VERY WELL""( this salesman plays fast and loose with his money (yours too) always 1 step ahead of the tax collector or repo man)...so the lawyer takes his time and dots every t and cross his eyes then repairs his mistakes and makes sure that these people have the financing and all is in order.the salesman is goin nuts!!!calls once a wk asking why we aint closed yet??
When we do close I'm free of mortgages and headaches. its a good thing 'cause that young couple that bought the house split up a few yrs later.

 

[n4zov]

IMHO a good realtor is well worth the cost. The learning curve on do-it-yourself can be very expensive!

 

[straightshooter1]

The answer is:

IT DEPENDS:

I have sold FSBO-but I am a lawyer. I also have a friend who was a successful real estate broker who schooled me in the ways realtors cheat.

See my post on "Do Realtors Lie" to catch the tricks they pull on FSBOs. And, as a young prosecutor, I had the opportunity to investigate and prosecute various crimes by these realtors.

In my state, almost every real estate deal that has a mortgage attached requires a home inspection. These inspectors catch problems such as those mentioned above.

Any Florida title company can do the paperwork, from the initial contract to and through the closing.

And, both the inspectors and title companies can be liable if they miss something, so they are pretty careful.

The big deal with FSBOs is to be sure your potential buyer really has the wherewithal to purchase the property. Job, earnest money, etc. You don't want to tie your property up with some deadbeat who can't complete the transaction.

If I was thinking about a FSBO, I'd contact a title company and discuss it with them.

If they say they will do the various parts for you, then I would consider it.

I can only speak about Florida and its laws, so your state may be very different.

A lawyer who does real estate law (dirt law) will, IMO, be a lot cheaper than a realtor, too. You could talk to one and see what he/she recommends.

Bob

 

[Indiana George]

Parallel,

My wife and I purchased our present home directly from the sellers. Closing was handled by a title company and our mortgage lender. Seamless transaction and alot less expensive.

On the plus side; The four of us (buyers & sellers) are all honest, forthright people, so working out the details (including inspections & disclosures) was a breeze.

On the negative side; The sellers had never sold a property without the assistance of a realtor and undervalued the property. Good for us, but they could have realized a bigger gain had they been more familiar with the market.

Note that this was in central Indiana. State and/or local laws may vary. I have no idea when it comes to real estate law.

 

[460v LAC du FLAMBEAU]

As a real estate broker here are my inexpensive suggestions:

Go to ListingDomains.com and create a website for your property for about $50. Load selling info & good color photos into the template. Use this template on various real estate websites. By creating this website on ListingDomains.com, this will allow you to post on CraigsList.org with a professional looking presentation. Plus moving this presentation from ListingDomains.com to CraigsList.org is just a few clicks.

Check out one of mine...FawnLakeEstate.com

The most important part of a real estate transaction today is the ability to obtain financing & the appraisal process...most deals are falling apart because of low appraisals. Make sure when accepting an offer the buyer has been pre-qualified for that dollar amount.

If you do not want to spend the $50 for a website, use PostLets.com for a free template.

COLDWELL BANKER BROKER

 

[truckemup97]

I put up a "For Sale by Neighbor" sign next door.

 

[oldRoger]

My sister supported herself as a realtor for many years. She knows the ins and outs very well. In recent Florida transactions, rather than do her own, she has found an agent to work with.
She says that in this market a Realtor is well worth their fee.
I do think that she does a little negotiation on the fee before she lists. Fee negotiation is certainly something you should explore.

 

[rburg]

We bought our current house as a FSBO (pronounced Fizz-Bo). It was 2 houses away from the old one. I took the dog for a walk and the neighbor was having a yard sale. He asked me if I wanted to buy his house. I told him it was beyond my pay grade, and I'd have to let my wife make any such decisions. So when she got home from shopping, I asked her and she said lets walk down and look at it. Then she made an executive decision and said she wanted it. The price was pretty good.

So we bought it. No lawyers, no real estate agents. Deed was handled by a mortgage broker, who got us a pretty good rate at the time. We moved. Kept the old digs up on the hilltop. It worked out fine.

Then I started to get antsy because back then, we only had a couple of years to sell the other house. Then one day another neighbor stopped me on the street (again, walking ole Spot). He wanted to know what I was going to do with the other place. I acted stupid (easy for me) and asked why. He said he wanted it. So we started negotiating, out on the sidewalk. A few days later he made me an offer that was just above my minimum. So I agreed. All verbal, no papers signed, no earnest money, just the word of two neighbors.

I'm thinking that one would really upset the professional real estate folks. So I called the friendly local judge from a block away. His wife was a lawyer, but didn't want any work. Go figure. So he directed me to a phantom, named Joe Boone. He had a great house, but he didn't much want to work, either. He was older than dirt. But he finally talked to me and the buyer, and then drew up a deed. We met at his bank, signed some stuff, took the check and deposited it in our account. No fees. No hassles. Everyone was happy as a pig in mud.

I guess its different if you don't have a buyer on the hook.

Over the last 14 years we've been in this house, we've gotten a few inquiries each year about selling. I'm happy where I am. If I wanted to sell out, the city where we live wants my house to put up a new firehouse. I'd move if they offered me enough to buy a castle. They won't.

 

[tomf52]

Don't do it. I tried it and it was a complete waste of time. Also had a crappy realtor for six months who did nothing but suggest we drop $80,000. Finally found a good realtor who sold the house in 30 days for our asking price.

 

[straightshooter1]

So, I think that it is possible to sell or buy a house without a realtor. Can do it like Dick did, if you know the people, or using a lawyer or title company.

BUT-for goodness sake-if you decide to use a realtor, pay attention to what oldRoger said about negotiating the fee.

I was slightly involved with a friend who wanted to sell her late sister's home. One realtor wanted 6%, which is the "standard" in this area of Florida.

Another realtor offered to handle it for 4%.

Big difference, especially when it comes out of your pocket.

BTW, the first realtor refused to negotiate his percentage, so he got 6%-

of nothing!

Bob