I am well aware that the general public believes that Realtors are overpaid (I could spend a whole blog post letting you know how the commission we receive is divided and spent until we get a fraction of it to deposit, but I will save that for another day).
Friends of mine are always saying, 'we might try to sell it ourselves.' My response is always, 'you should.' And then I go on to tell them how they should handle the security issues and how they want to be sure to get legal advice as they go through the contract negotiations. Sometimes they give it a try, and sometimes they don't. I never want to take on a client who does not believe my services and time are value-added. If they are concerned, by all means, they should try it on their own.
The truth is, it is far more complex than putting up a sign and buying a
combo box.
combo box.That brings me to the concept of using a fee-for-service brokerage to advertise your home (which usually goes hand-in-hand with putting up a sign and installing a combo box) . I have seen a couple of things that make me (and I am sure other Realtors) cringe. If you are going to take this on, here is what you should keep in mind.
- Your choice to discount the buyer commission could negatively affect your traffic. I am not saying it will, I am just saying it might. Look to see what competitive homes are offering and give yourself a chance by remaining competitive.
- Know your comps and understand how appraisers assess value. You might think your new carpet is a huge asset, but the market (and finally the appraiser) determine the value of your home.
- Understand how a home inspection works and how you will get technical information during negotiations. As a buyer's rep, I can present our requests to a FSBO, but I cannot provide additional information or opinion on how they should respond. As Realtors, we don't understand every system in the house, but we have a strong network we can go to to ask questions and get clarification on issues.
- Understand the Home Owners Association rules and laws in your area. Here in Virginia, you CANNOT just hand over the packet you received when you bought the house. It must be ordered and updated.
- Make sure you understand the legal definition of rooms and don't misrepresent what you have. The biggest violation here are basement 'bedrooms,' which are often not bedrooms at all.
- Be kind to the Realtor who brings you a buyer. They are likely doing twice the work--and often for less of a commission than they would normally receive as a buyer's agent (see #1).
- If neither the buyer or the seller has a Realtor, you would be unwise not to hire an attorney. The transferring of real estate is subject to many rules and regulations. Make sure you understand your obligations or hire someone to guide you through the process. The last thing you want is to be sued over your efforts to save some money on your home sale commission.
Comments(32)