A year ago I'd have said to do the FSBO, and if yours is still a sellers market, I'll still say it. BUT...right now real estate isn't moving in many markets and house prices are declining there. If you need to sell soon, I'd use a Realtor. Interview at least three and ask them exactly what they will do to get a contract on your house.

Some things you might consider are offering financing or a "rent-to-own" contract; your attorney can explain the possible advantages.

You might want to do a search on FSBO threads on this site.That's a good starting place.

If you want to sell fast ,price at the lower end of your house range.

Where are you ? is there a discount broker that could get you on the MSL?
are you going to offer a buyers agent %?
is your market a buyers or sellers?

you need to figure these things out..

I would strongly caution you not to try to FSBO, if you are a first time seller.

A couple of points:

While its great that you could use a real estate lawyer, that's going to cost you money anyways and in business, lawyers are notorious for mucking up deals.

Fliers and open houses aren't really effective. Most people that stop at open houses are just neighbors or people who do this as a hobby.

If you're doing it FSBO and sell it to somebody else, they're going to expect a reduction in price since there's no agent involved.

Or, if they're using an agent, that agent is going to expect a cut of the commission so you're not going to be saving 6%.
And, that's assuming if the agent is willing to bring his client to your house in the first place. For an agent that's dealing with an FSBO, its always more work than just handling it with another agent.

Think of it from the perspective of the buyer's agent: all things being equal, would you rather take the client to a FSBO house that's going to be more work for the agent or to another house?

Depending on your area, you might be able to negotiate something less than 6%. The higher the price, the more likely you can get a lower commission. Just remember that you don't want to negotiate so hard that you get something that's lower than the standard, as this will make agents wary of bringing their clients to your home.

You might think the 6% is excessive, and are probably right, but most real estate transactions today still use real estate agents. Until that changes, its better to bite the bullet and pay the commission rather than be pennywise, but pound foolish. History is strewn with these dreamers who were ultimately proved right, but whose ideas were rejected by society because society wasn't yet ready for them.

I disagree with lawyers mucking things up.

I do agree that unless you are in a strong seller's market, I would not go FSBO at this stage of the cycle. If you really want to sell, let the pros handle this one and pick up any/all tips you can from how it's done...and use that info in the future if you sell again.

Whichever path you choose do yourself a big favor and hire a competent real estate attorney.

As others have stated, your market and the FSBO history of the area will have the greatest impact on whether or not you should attempt a FSBO.

'While its great that you could use a real estate lawyer, that's going to cost you money anyways and in business, lawyers are notorious for mucking up deals.'

our lawyer was 500$ for a very complicated sale...that she straightened out after the REagents screwed everything.
compare that to 6% of the house sale for those that screw up

"You might think the 6% is excessive, and are probably right, but most real estate transactions today still use real estate agents. Until that changes, its better to bite the bullet and pay the commission rather than be pennywise, but pound foolish. History is strewn with these dreamers who were ultimately proved right, but whose ideas were rejected by society because society wasn't yet ready for them."

I guess that about sums it up.

Inky, in some areas real estate agents will try and shun sellers who go comletely FSBO or who only want to pay the buyer's broker. My big fear would be them bad-mouthing my house. And I wouldn't put it past them.

In other areas (or so I have heard) agents are flexible about these arrangements. Of course they are going to tend to view the full commission properties more favorably. It's understandable that they would rather deal with a listing agent they know than an owner who could be a fruitcake. We are in an area like that now (I think) and I suspect it's partially due to being in a metropolitan area with a lot of competition and an MLS that is accessible (well, mostly accessible) to the public.

When a relative sold a house recently in a smallish town with not-so-ethical real estate brokerages I suggested that he try marketing himself for a very short time, just in case someone local who he already knew might be interested. He considered that, but in the end when with a new agency that had just been started by a lawyer (who had not been a broker before) that was affiliated with a high-end brokerage with offices in other towns. So he was able to avoid the biddy cabal, but definitely was a little fearful striking out on his own (and probably rightfully so).

I think you should ask people locally about the attitudes of area real estate agents. Your course of action will also depend upon the price of your property. A good agent wil provide good advice on getting your home ready, network with other agents, and act as a buffer during emotional negotiations. And an owner selling is more likely to disclose negative information (because an owner knows more about the house and can't honestly say "I don't know.") But is this worth 6% on a million-dollar house? I don't know. Is it worth 6% on a 200k house? It would be for me.

You've got it backwards. You're probably not going to earn more as a FSBO and will definitely spend more money on marketing but it will sell faster as a result. Especially if you are accommodating and make it easy to sign the contract and provide financing through a cooperating mortgage agent.

Due to the risk of being accused a spammer, I no longer give tips on low cost exposure ideas over the forum but you can click on my page then send me a message if you want to talk about it.

Hello:

I really appreciate all advice everyone has given me here.

I live in Massachusetts and in my area, I do not see a lot of FSBO. However, when I was vacationing in Oregon a week ago, I saw tons of FSBO or sellers in the reduced commission program "Assist to sell".

I am fully prepared to pay buyers' agent commission of 2.5 to 3%, but 6% just seems a little much for a $350K home if I have lawyer that could look over a deal and I know the market fairly well and would not overprice. I am also prepared to put my property on the MLS.

I do not need to sell fast, but just want to capture the most profit from selling my home, and I did not think it is too much to ask for one of the biggest investment in your life.

I am only concerned that I may be too naive and not aware that agents would shun buyers from my property when I do not list with a traditional broker.

I welcome all inputs from you guys. Thanks a lot again for all the advice.

If you look through this forum, there are many threads from a couple of weeks ago about FSBO vs a Realtor.
In the past, I have sold houses FSBO & with a realtor.

I've extensively posted about the pros & cons.
I just sold a house FSBO w/ a limted MLS Realty. I would have paid 3% commission to a buying broker, if they brought me a buyer, or I paid nothing if I sold it myself. I SOLD IT MYSELF. Utilizing that semi-FSBO ($399) service placed my house on Realtor.com & into the MLS & they sent me their sign. Oh, for extra $ I could have gotten a lockbox (I chose not to)The rest I had to do myself I.e. advertising, brochures.

Brochures do not work, but are a necessary evil. I had approx 120 taken. Yes, my buyer took one...but they were waiting for my house to go on the market.

FSBO attracts bargain seekers. They expect you to be priced lower than the comps & EXPECT you to lower your price by 6%! That has been my experience.

Realtors boycott (do not show your property) & they BADMOUTH you as the owner & your property. THAT has been my experience. Too many stories...

IF you have the stomach for all the BS that goes with selling, you may be able to save some $$$. However, a couple of things have to be in your favor: The RE market needs to be decent & it works better with starter homes in desireable towns/neighborhoods,otherwise it's a struggle. You are working against too many variables.

BTW- I agree with some of the posters, the commissions should not run over a certain amount i.e 6% on 200k ( $12,000) & 6% on 1 mil( $60,000). There should be a cap. Paying someone 60k for the same type/amount of work is bogus.

"I do not need to sell fast, but just want to capture the most profit from selling my home, and I did not think it is too much to ask for one of the biggest investment in your life."

You could try both... first do FSBO and see what kind of offers come in. Assist2Sell is similar to BuyOwner. (Thank You Buy Owner!... that one) Charge you a commission for a spot on their site and a yard sign. Keep shopping for another site.

Unless I'm mistaken, most of Oregon is still a seller's market. Not so the NE.

You'll need to talk to some Realtors anyway so why not start with that and feel your way along. Realtors should bring you data on what comps have SOLD for recently (not listing prices, SELLING prices) and tell you what they think you might do to help make your home more marketable. They should also tell you exactly what they will do to market your house. After you gather those facts, think about whether you are comfortable with any of these offices or if you want to try FSBO for a set period of time.

If *I* were selling in the NE now, I'd list with a realtor. You only get one "New Listing" premier -- don't waste it with FSBO. You might be as lucky as we were. When we told some realtors we were moving, one of them knew a client who wanted a property like ours. We signed an "identified client" listing and that couple not only bought for our desired price but were willing to wait on possession. (We were building new.)

However, when I was vacationing in Oregon a week ago, I saw tons of FSBO or sellers in the reduced commission program "Assist to sell".

Unless I'm mistaken, most of Oregon is still a seller's market.

I live in Oregon and work for a real estate agent. It is NOT a seller's market here. In my part of the state it has been a buyer's market for about a year.
The "Assist to Sell" company really isn't a better deal than traditional brokers if you look at their pricing structure.
I wouldn't say that agents "shun" FSBOs, but when there is plenty of inventory on MLS that is offering a commission there is no incentive to work with FSBOs who have chosen not to work with agents. Without a buyer's agency agreement I think that it is understood that some buyers will look at and buy FSBOs on their own.

Just a funny story-

I had a crazy buyer calling me every 10-14 days checking to see if I lowered my price. He loved the exterior of the house & was hoping it would go up for sale. He didn't care what the comparables were & that I was priced below the comps. He just wanted to know WHEN I was going to lower my price, so that he would pay what HE was comfortable spending...He figured I could lower the price considerably, because I was selling FSBO. That's what he told me. LOL

He never came to look at the house. He was just waiting for a steel because I was a FSBO!

[QUOTE]I do not need to sell fast, but just want to capture the most profit from selling my home, and I did not think it is too much to ask for one of the biggest investment in your life.[/QUOTE]

Usually, the two are linked. The longer the house lingers on the market, the more likely you'll need to reduce the price.

When its all said and done, once you factor in all the various factors and costs, you'll probably end up saving maybe 1-2%. Then, its up to the particular seller if all the sturm and drang is worth saving 1-2%. In this particular case, I'd be especially wary since the FSBOs hasn't seemed to caught on in this particular market, the market has turned, and that this is a first time buyer. It might be better to just use a realtor this time, and pay close attention and ask a lot of questions so next time you can do FSBO if you're so inclined.

terriks -- Thanks for the update on Oregon. I was really thinking "Seattle" and just slipped over a state! LOL

To the OP: If I didn't have to sell I would wait a year to put my house on the market. I think we've only begun to see the slide and buyers who don't HAVE to buy will wait a while.

inky,

Here is a good discussion about one of the biggest problems people run into when they go FSBO, even when they pay somebody to get into the MLS:

http://ths.gardenweb.com/forums/load/realestate/msg0718523614211.html

I wouldn't say that realtors are blackballing FSBOs to try to protect their turf as much as it is that FSBOs are usually more difficult to deal with- most FSBOs are too emotionally attached to their homes and have unrealistic expectations, don't know how to do the paperwork, etc.. A lot of real estate agents would prefer to avoid FSBOs even if the FSBO is offering commission to the buyer's agent.