IMO, a realtor is there to find buyers, not the legal paperwork. The realor isn't worth a lot of money for the legal stuff because the realtor, at least in my experience, doesn't actually do a lot of the legal paperwork. In my cases, the realtor(s) just filled in the standard TREC (Texas) home buying contract based on verbal feedback from all parties and once all signatures were on there, this was handed to a title company that took care of the rest (coordination with bank, deed, recordings, closing). If I was planning on FSBO (only in a strong sellers market), I would: * Search the net for a standard home buying contract. Only if that comes from a reputable source (like TREC in TX; which was used by all the realtors that I ever dealt with) and if it is written in clear language would I use it w/o an attorney. Otherwise I'd look up a real estate attorney in your state to get a good contract. * search for a title company and ask them what the info is they need to proceed after a contract has been signed. * market the house (this is where a good realtor is valuable) * after negotiating the sale and the contract is signed, contact the title company again and let them handle the rest.

Berniek, I will NEVER agree with you, and your sticking up for the way the RE system is set up, so deal with it. It's a scam! Yes, the agents have to go thru stupid training and are supposed to abide by the RE laws and rules, but few remember them. Many choose to ignore them just to make a buck. LMAO. In fact, it's the stupid RE agents, but with great sales tactics, who are the top producers in the RE offices. The ones who have alot of info and are genuinely trying to list/sell don't have the skills to entice clients. The ditzy ones, who can talk up a storm , but don't have 2 brain cells to rub together get most of the clients. These are two different types of skills. Rarely, people are born with both. Just sayin. Brickeye, I am not necessarily attacking RE agents, because some are very smart and are worth a decent paycheck. However, the ENTIRE RE business exploded, demanding the 5-6% commission, because it needs the money. Most of that money goes to the administration and lobbying in Washington. It's BS. Stupid busy work (like Berniek is quoting) is set up for the realtors as though they are Lawyers. But they are NOT!!! Writing up a contract or an option to a contract should not and is NOT rocket science! I've done many contracts ;) My point is to have RE agents be versed on sales and broker laws, set up offices like Accountants/lawyers, and work on their own. BS with all the red tape and dumb RE laws as Berniek "so eloquently" portrays on this website. Just do the right and proper paperwork thing. Just common sense representation/mediation/ negotiation until turned over to the RE lawyer would be sufficient. RE agents should get paid for their hard work, and keep ALL of their hard earned money-the good ones, anyway. the check and balance system would be strictly between the realtor and the attorney. The buyers and sellers would have to assume a bit more responsibility, UNLESS they want to pay ala carte for a lot of service. This way nobody would have a reason to complain. You pay as you go. You get paid for what you do. Give the buyers/sellers/ RE agents a choice, instead of working in the RE Mafia.

I sold FSBO more than once. Here are some tips. 1) figure out what your state requires as far as who does closing. Some states require an attorney and others allow title companies as well. 2)if title companies are allowed, contact one or two and ask about what they do for FSBO closing/contracts. I found one that gave me a free package with blank contracts and bullet points on steps to take. I didn't use them for that closing because the buyer chose another title agency. But the info was helpful. 3) call an attorney or two and ask what they do as far as contracts for FSBOs (cost, procedure,etc). You could send the buyer to the attorney's office when they are ready to offer. You pay the up front fee with attorney for filling out contract with buyers. 4) The dog: I would arrange for showings when I could be home to remove the dog from the home prior to showing. if agent shows you don't want to be there. In my case, we had one spouse take the dog out and the other spouse be show the home...or sometimes both spouses went to the patio with the dog and allowed buyers full access to the home. 5) work schedule: We found most buyers looked during weekends and a few on weekdays after work. However, we did have maybe 10% of buyers looking on weekdays. If you talk to them on phone, you try to schedule them after work or weekends when they tell you they want to look. NEVER tell them you are working...just go forward with setting the schdule as if you are booked during the week. If they must see during weekday, then you schedule this with time off from work. Be available Sat and Sun from 10AM-5PM. this is when most buyers are looking around for homes and calling as well. 6) get a custom sign. Get it larger than standard by a bit. Maybe 3'x4' or 2'x3'. most sign companies will make one for under $100. You can pick what goes on sign and pick the colors and even can put icons and such on the sign. You want to put the biggest draw to the home on the sign - such as "on golf course", or "lakefront" or "finished basement". 7) create a web site with several pix of home. put reference to this web site in bold, on the flyers. Get a flyer box for the sign. Realize many neighbors will get these flyers, especially first week. This is normal. 8) I offered a set fee to realtors and if buyer did not have realtor, offered this amt off the price of the home. This worked well. I put this on the flyer so buyers could choose if they want to get a realtor, that the realtor gets the "discount" as commission. 9) many buyers are happy to look and buy FSBO. Be professional at all times. This will be time consuming and you must work hard. Return all calls asap, don't be rude. 10) lookie loos usually give you the line that they are looking at homes for their brother or mother or whatever. These are usually folks that live in a comparable home and they are usually fibbing to come see your place. The web site pix help weed most of these out..but you will find some of these folks trying to see the home. I weeded them out. I would say when your sister or mother is in town, we will set up a showing. Also you can ask the callers if they have a home to sell, when they need to move. This weeds out looky loos and also it helps you realtize the buyer's motive. I knew we would not allow a contingency for them to sell their home, so would let them know up front.

To be fair, I said, "My question is: do you think having it as a FSBO for a year before listing with an agent will hurt me, if it doesn't sell?" I asked a specific question in my original post and several people answered the question, yet I got a lot of answers that have nothing to do with it. While I appreciate the effort, and I do. I also really had questions ONLY about whether or not this forum thought that having a house as a FSBO for a long time will hurt me when I list it. I got a lot of good information about security, rental agreements, keeping the house clean, and financial advice. But, again, I asked simply about whether or not people felt like having it on the market for a year would drive the price down when (if) I list it with a realtor. Now, Salti - you are correct my statement was wrong. I should have said, "I refinanced a few years ago at 2.675% on a 15 year mortgage, and already 75% of my payment is equity for me." When I originally wrote the statement I said higher, I changed it to give a concrete number. However, your statement, "Having a low interest rate mortgage has nothing to do with the percent of a month's payment going toward equity or interest," is also quite wrong. For all 180 payments on a 15 year mortgage or all 360 for a 30 year mortgage a lower interest rate will have a larger percentage going to principle than its equivalent payment on a higher rate mortgage. Having said all that, it is still not relevant to the question, and, you offered no other advice, just popped on to say I was wrong... @ Tete - I was, probably pointlessly, defending percentages. You may have the same amount going to principle (or close enough) but you will have a lower payment. If your numerator stays the same, and your denominator is lower it has to be a higher number.