FSBO Does it work?

Question

I am selling my property (a duplex). I have it listed on several internet sites and on the MLS. My question to anyone experienced in this field and particularly with FSBO's is what are the major things I can do to sell my property quickly. A duplex exactly like mine was listed just a week before mine for 11k more and yet I haven't had a single phone call in the 2 weeks since I listed it. To help sweeten the deal I am also offering 3% to the buyers agent. I know the price I set for it is highly competetive becasue several units like mine have all (all but one) sold for more. Although, I am aware of the real estate down turn, our area is still showing slight appreciation (I live in Eastern Washington state). ANY help and advice is greatyl aprreciated, I NEED TO SELL!

Answer 1

Hire a real estate broker!

Answer 2

80% of all FSBOs either sign with a realtor or change their plans.  With buyers having so much to choose from they would rather have a Realtor do the work.  I would list with a Realtor.  Good luck

Answer 3

Can you offer some sort of seller financing? That's what we're trying since our property hasn't moved in 6 months of having it listed. It's the least expensive property in the entire area and we got zero offers. Our agent suggested we offer the financing as a last resort. It's only been a week, but the phone isn't exactly ringing off the hook. It's a bad time to sell if you don't have to. We have had several properties up for sale since last year and only 1 has sold. Bad, bad economy! Be creative or just rent it out. I wish you luck.

Answer 4

Sounds like you are really having a hard time. However, even though you are a FSBO, most of the people that will see your home will be another agent's client. So the key is to market to other agents, which in most cases it will involve you working with an agent. The reason being is that the average commission is 6 to 7 percent, which is generally split between two agents. The buyer's agent gets 3 to 3.5 and selling agent gets 3 to 3.5. Remember the average qualified homebuyer will be working with an agent as most of them want the agents to take out the guesswork in buying real estate. The strategy in selecting the agent is to find out who has been selling property not just listing in your area chances are he can probably sell yours too.

Answer 5

The biggest problem with FSBO is that lots of times the realtors don't look hard enough to see that you will pay the 3%.  They see FSBO & look to the next one.  Maybe try an open house- put balloons out- signs at the grocery store bulletin board etc.  Big thing is marketing.  Good luck!

Answer 6

List with a Realtor.

As Carolyn notes, most FSBOs eventually give up and either list with a Realtor or take their homes off the market.

The 3% to the buyer's agent doesn't "sweeten the deal." That just levels the playing field...a little bit. A lot of agents don't like FSBOs because they know they're going to end up doing most of the work for the seller (you), so their workload is likely to be much higher than if they were dealing with a Realtor who listed your property.

You say you know your price is highly competitive. When did those other units sell? A couple of days ago, someone called me wanting to sell a condo. She said it was worth $385,000, and she only wanted $325,000. Sounded like a good deal. But I checked the comps and her unit was only worth $270,000. When I called her, I asked where the $385,000 figure had come from. She said that's what they'd sold for 2 years ago (before the bubble burst). I mentioned the more recent sales around $270,000. "Oh," she said, "but those are foreclosures." Yes, but that was her competition; that was what someone might pay for her house today.

Moral of the story: You need comps from no more than 3 months ago. And the duplex that was listed for $11,000 more...has it sold? Probably not. They'll come down in price.

Another comment below suggested an open house. You want to know a little secret. Here, come close....open houses do not sell houses. Agents hold open houses for two reasons: (1) because sellers demand it, and (2) because it's a great way for agents to find new clients...people who are in the market to buy.

If you want to sell your property quickly, get real comps. Even if you want to continue as a FSBO, call up a Realtor and ask for a CMA. A Realtor will be glad to do it for you at no charge. Then price your duplex at or below the bottom of the comps. Then market the heck out of the property.

Hope that helps.