Every once in a while you see a lawn sign "House for sale by owner". I assume once he strikes a deal with a buyer, he gets a real estate lawyer to done and dust it. Everybody goes home happy. It couldn't be that simple. What are the pitfalls?
Selling your house by yourself
- Thread starter inreb
- Start date
defeater905
Well-known member
I know real estate agents won't show your house to anyone if you list privately. Probably the biggest drawback I know of.
Hmm...going to show my ignorance.....if you think you want to move one year from now why not place a for sale sign to gauge the market? I'd be surprised if the seller was not approached by real estate agent for a chat.
-Maverick-
Well-known member
If you live in area where houses are selling in minutes with multiple offers, then ComFree.ca may work well for you. Although the website is terrible and the service is frustrating as hell. It gets you on their site and MLS / Realtor.ca for $300
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defeater905
Well-known member
Ya, you might be...but why would they show their client a house where they aren't entitled to any commission when there's hundreds of houses listed they can show their client instead? If anything they'd just try to get you to list your house with them. They've got you by the nuts in that regard.
What seems a better option to me are these realestate agents I've been seeing ads for where they list your home without a commission. Just a flat rate.
What seems a better option to me are these realestate agents I've been seeing ads for where they list your home without a commission. Just a flat rate.
The thing is though, if a realtor brings a buyer through MLS etc, they will be expecting a brokerage fee, likely 2.5%, so in the end, what are you really saving and how much headache are you taking on. That said I think Inreb is referring to those who grab a sign at crappy tire and wait for a knock at the door.
Flat rate is sticky for the same reasons. Buying agent may not show your property because the one down the street at whatever percent will likely bring them higher commis
Most 'com free' sellers should expect to pay 2.5% to the agent bringing them a buyer.
The MLS is 95% of the marketplace. Selling without a realtor involved (either end) is not an easy thing. You severely limited your market exposure. And if you pay flat to list on MLS without offering a commission, no realtor will show your house.
The MLS is 95% of the marketplace. Selling without a realtor involved (either end) is not an easy thing. You severely limited your market exposure. And if you pay flat to list on MLS without offering a commission, no realtor will show your house.
My first 'private sale' didn't work out. The homeowner (private seller) brought their 'friend' to negotiate on their behalf. Their 'friend' happened to be a real-estate agent who had already been paid through previous transactions for this homeowner and was throwing in this sale as a freebee. Anyway, I ended up walking away as I was completely unprepared to negotiate with a real-estate agent on a 'private sale'. The nail in the coffin for me was the house cost I discussed with the husband had been substantially increased when I sat down with the wife and 'friend'.
I bought my current house through a private sale. It was very simple and straightforward. All of the paperwork was online. My real-estate agent (who I used to sell my condo) coached my wife and I through the process as well as evaluated the house for us. For her (our agent) it wasn't about the commission. It was about her helping us find the right home. She is amazing if anyone is looking for a good agent.
If you are interested in a house with a 'for sale' sign on the grass, I would recommend knocking on the door and talking to the home-owner.
We used to do with with houses listed by agents as well. The agents don't like it but I found I can have a much more open conversation with the seller as opposed to their agent.
I bought my current house through a private sale. It was very simple and straightforward. All of the paperwork was online. My real-estate agent (who I used to sell my condo) coached my wife and I through the process as well as evaluated the house for us. For her (our agent) it wasn't about the commission. It was about her helping us find the right home. She is amazing if anyone is looking for a good agent.
If you are interested in a house with a 'for sale' sign on the grass, I would recommend knocking on the door and talking to the home-owner.
We used to do with with houses listed by agents as well. The agents don't like it but I found I can have a much more open conversation with the seller as opposed to their agent.
This seems fruitless to me. They're already contractually obligated to the listing brokerage, whats to be gained? Especially in this market where almost every listing attracts multiple offers.
mbroyda
Well-known member
There is a lot to be gained IMO as people who are in the market are continuously scanning Realtor.ca etc (if they are smart)
I was looking for an investment condo a few years ago and found several private listings on Realtor.ca that my agent "neglected" to send me.
friends of mine sold their house this way a few years ago, and even tho it was a hassle for a week or 2 organizing showings and negotiating I estimate they saved $35ish thousand
We sold our place ourselves. The money we would given to an agent paid for the first year of travel.
I tried to sell 2 properties myself several years back, before I became a registered salesperson. Only people who called were Realtors. And only one had an actual buyer, so I offered her the 2.5% to make it happen.
It's about luck, really. Like I said, the MLS is 95% of the marketplace, if not more. And 99% of the listings are commission based. In a comfree arrangement, both the buyer and seller expect a 'deal' yet they both use the MLS to gauge market value, which already has commissions built in.
mbroyda
Well-known member
being in a high demand area helps
Hack
Well-known member
The real estate "boards" have a great scam going.
They've managed to convince society that they're the only ones who can/should sell other people's houses.
'Recently sold a house privately and had to put up with a number of agents who thought they were owed the listing for whatever reason... Some were quite aggressive. Others where more diplomatic and open to all sorts of shadey side "arrangements" in order to get a taste out of the transaction.
For the work they do I don't think their asking commissions is justified.
Maybe I'm wrong, but tens of thousands of dollars in my pocket sounds better than tens of thousands in some slicksters pocket for posting an ad and holding an open house...
They've managed to convince society that they're the only ones who can/should sell other people's houses.
'Recently sold a house privately and had to put up with a number of agents who thought they were owed the listing for whatever reason... Some were quite aggressive. Others where more diplomatic and open to all sorts of shadey side "arrangements" in order to get a taste out of the transaction.
For the work they do I don't think their asking commissions is justified.
Maybe I'm wrong, but tens of thousands of dollars in my pocket sounds better than tens of thousands in some slicksters pocket for posting an ad and holding an open house...
I would do this except the travel part.
I don't think the boards have a scam but I agree with your assessment of Realtors and particularly your experience. I had the same.
I'd never call a comfree seller and offer my services. That's just shady as hell. Every profession has it's bad apples tho. Also, most Realtors will cut you a sizeable deal if you're using them to buy and sell.
You should always use a realtor. Has no one seen the commercial where the guy has to join a biker gang? I wouldn't want that to happen. Bikers are scary.
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