Selling a home by owner - any advice?

anyonefortennis · #1 02-06-2010, 11:22 AM

Anyone sold their home by owner?

We are getting ready to sell our first place (a condo) and since we were one of the folks that financed almost the whole amount (about 95%) I'd prefer to not get a real estate agent that would take 7% of the value. Our place has increased in value with all the work we did in it but would rather pocket the profit instead of just giving half of it away.

Please share your words of wisdom in the world of 'for sale by owner'.

Randall · #2 02-06-2010, 01:46 PM

In Canada there is a company called Comfree. Basically charge you 500-600$ to advertise etc and help with the paperwork the realtor would normally do. You might find a similiar outfit where you live.

hbarcat · #3 02-06-2010, 01:52 PM

I think that in general the money you save by not using a Realtor is offset by getting less for your house because it isn't listed with a Realtor. Your pretty much betting on one spin of a roulette wheel

need4mospd · #4 02-06-2010, 02:24 PM

Quote:

Originally Posted by anyonefortennis

We are getting ready to sell our first place (a condo) and since we were one of the folks that financed almost the whole amount (about 95%) I'd prefer to not get a real estate agent that would take 7% of the value.

On top of getting less for your home(10% or more on average), it will generally take longer to sell(time is money!) and you'll have to do all the research and hard work yourself. Generally, I'd say selling a home yourself is a good way to LOSE money.

Quote:

Originally Posted by anyonefortennis

Our place has increased in value with all the work we did in it but would rather pocket the profit instead of just giving half of it away.

While I'm sure the work you've done has increased the value of your property, don't be so sure you can sell it for more than you paid unless you bought it at least 10 years ago. Selling your house in the middle of a housing slump will give away FAR more value than going with a realtor.

JimB52 · #5 02-06-2010, 02:33 PM

We sold our last house ourselves, had 2 open houses, built a website, advertised broker protected (3.5%) At agent brought us a buyer that would have netted us very close to what we made without her.
Get a really good attorney. You will need him.

anyonefortennis · #6 02-06-2010, 10:27 PM

Quote:

Originally Posted by need4mospd

While I'm sure the work you've done has increased the value of your property, don't be so sure you can sell it for more than you paid unless you bought it at least 10 years ago.

We bought a condo instead of a house which is kind of a unique market (at least here in Lincoln). We paid $105k 5 years ago and it was just professionally appraised for $132k.

We saw a cool house to buy and the relator said if we buy and sell with them we would get a break in comission so we may use a relator after all.

EBodious · #7 02-07-2010, 01:05 PM

sounds like you may have already worked this out. don't know if rambling on my experience will help, but here goes....

my first house was going to be transacted without a realtor. the owners were friends of friends and we had been renting it for a couple of years with the assumption they would sell to us. we all started as reasonable adults, but the market (about 7 yrs ago, davis,ca - a university town) was exploding and the real-estate was in high demand. owners got dollar signs in their eyes and hired (without warning) the most aggressive realtor in town, who set a price beyond reasonable, but still the cheapest house in town. it was all soap opera from there, but there was me and my wife and two kids and all our stuff well entrenched. we were a captured audience so to speak. it worked out all rite but when the trust bottomed out, it was unpleasant and very stressful till it was finally done.

as fate would have it, we moved to iowa one year later. fortunately, the market was still so out of control strong that we made enough profit to justify the mess when we bought. we were determined not to treat anyone as badly as we were treated. we sold it ourselves to another friend who needed the help of a good friend of both of ours to get the bank loan. our selling experience was that we all sat down in the living room with a few beers, talked about the market and the neighborhood (1950's tract housing, all the same, easy to determine "fair market value"), and settled on a price that we all (honestly) felt good with in less than an hour. very nice experience and no realtors (7% of the price of a house in california is stupid big bucks).

we bought our house in iowa from the seller directly. i met them on a two day house hunting trip that did include a realtor. i tried to go the normal realtor route, but it didn't work out and i ended up calling these folks from a pay phone at sierraville hot springs (crazy life). i did all negotiating by phone from california. it worked out fine, no breakdown of trust.

i think that you get what you pay for from a realtor. they know the market, the have established contacts (if you find a good one -like lots of repeat customers). most important, possibly, you don't have to even think about "trust." for many that alone is worth the price. treating people decently and getting treated the same is, of course, the difference between happy, healthy life and the soap operas some folks just can't get enough of.

i have a friend here who is about to sell his house himself. he is just planning to move to a smaller house across town, so he is in no rush. to me, that is a scenario that doesn't need a realtor. he can always hire one in a year if things aren't working. being that i live in another university town (as do you), i would say that if you NEED to sell now cause you are moving and the market sucks, then a realtor is worth the money. if this is at all at your leisure then it may not be a necessary first step. if lincoln is like ames, the market peaks in may when all the new university hires come looking for housing. they need to secure living arrangements regardless of the economy or market.

the details of the paperwork,etc are not a big deal in my opinion. but, i like to do my own taxes too. you may not be of that personality. i find that in that situation, you become a fast "expert" and get it done. the big issue is decency and trust, from my experience. and stress, some prefer to pay to have it alleviated, some take it on!

good luck; i hope it goes well and not too stressful.

P. Aaron · #8 02-07-2010, 02:06 PM

1) Price it right. IF your competition is priced the same as you, you're all just for sale. Considering that you WANT another home, price your condo to get showings & an offer.

2) Don't let little things screw up your deal. If the Buyer wants appliances, let 'em go. You can get new ones.

3) READ all purchase agreements that are presented to you. If you need an attorney to sort out 'terms' and 'clauses', get one.

4) Reply to all offers in a timely manner. Buying is an emotional experience. You may be surprised that some folks will 'up' their offer. Lose the Buyer's emotion, you've lost the sale.

P.S. Is your condo complex FHA compliant? Find out. You could lose an good Buyer/Offer if FHA does not have your condo complex on the 'approved' list.

Or, hire an experiened Realtor and let them market your home and deal with all of the calls from qualified & un-qualified prospects.

There's nothing like that feeling of 'losing' the house you want. You never forget it.

P.S. Residential Realtor over 13 years.

anyonefortennis · #9 02-07-2010, 10:07 PM

Quote:

Originally Posted by EBodious

sounds like you may have already worked this out. don't know if rambling on my experience will help, but here goes....

my first house was going to be transacted without a realtor. the owners were friends of friends and we had been renting it for a couple of years with the assumption they would sell to us. we all started as reasonable adults, but the market (about 7 yrs ago, davis,ca - a university town) was exploding and the real-estate was in high demand. owners got dollar signs in their eyes and hired (without warning) the most aggressive realtor in town, who set a price beyond reasonable, but still the cheapest house in town. it was all soap opera from there, but there was me and my wife and two kids and all our stuff well entrenched. we were a captured audience so to speak. it worked out all rite but when the trust bottomed out, it was unpleasant and very stressful till it was finally done.

as fate would have it, we moved to iowa one year later. fortunately, the market was still so out of control strong that we made enough profit to justify the mess when we bought. we were determined not to treat anyone as badly as we were treated. we sold it ourselves to another friend who needed the help of a good friend of both of ours to get the bank loan. our selling experience was that we all sat down in the living room with a few beers, talked about the market and the neighborhood (1950's tract housing, all the same, easy to determine "fair market value"), and settled on a price that we all (honestly) felt good with in less than an hour. very nice experience and no realtors (7% of the price of a house in california is stupid big bucks).

we bought our house in iowa from the seller directly. i met them on a two day house hunting trip that did include a realtor. i tried to go the normal realtor route, but it didn't work out and i ended up calling these folks from a pay phone at sierraville hot springs (crazy life). i did all negotiating by phone from california. it worked out fine, no breakdown of trust.

i think that you get what you pay for from a realtor. they know the market, the have established contacts (if you find a good one -like lots of repeat customers). most important, possibly, you don't have to even think about "trust." for many that alone is worth the price. treating people decently and getting treated the same is, of course, the difference between happy, healthy life and the soap operas some folks just can't get enough of.

i have a friend here who is about to sell his house himself. he is just planning to move to a smaller house across town, so he is in no rush. to me, that is a scenario that doesn't need a realtor. he can always hire one in a year if things aren't working. being that i live in another university town (as do you), i would say that if you NEED to sell now cause you are moving and the market sucks, then a realtor is worth the money. if this is at all at your leisure then it may not be a necessary first step. if lincoln is like ames, the market peaks in may when all the new university hires come looking for housing. they need to secure living arrangements regardless of the economy or market.

the details of the paperwork,etc are not a big deal in my opinion. but, i like to do my own taxes too. you may not be of that personality. i find that in that situation, you become a fast "expert" and get it done. the big issue is decency and trust, from my experience. and stress, some prefer to pay to have it alleviated, some take it on!

good luck; i hope it goes well and not too stressful.

thanks for the advice. We were waiting for the may time frame since Lincoln is similar to Ames with the University traffic and our condo is spitting distance to the U. We just saw a nice house that was 'flipped' and trying to get this done in a hurry. Thanks for sharing your experience.

anyonefortennis · #10 02-07-2010, 10:08 PM

Quote:

Originally Posted by P. Aaron

1) Price it right. IF your competition is priced the same as you, you're all just for sale. Considering that you WANT another home, price your condo to get showings & an offer.

2) Don't let little things screw up your deal. If the Buyer wants appliances, let 'em go. You can get new ones.

3) READ all purchase agreements that are presented to you. If you need an attorney to sort out 'terms' and 'clauses', get one.

4) Reply to all offers in a timely manner. Buying is an emotional experience. You may be surprised that some folks will 'up' their offer. Lose the Buyer's emotion, you've lost the sale.

P.S. Is your condo complex FHA compliant? Find out. You could lose an good Buyer/Offer if FHA does not have your condo complex on the 'approved' list.

Or, hire an experiened Realtor and let them market your home and deal with all of the calls from qualified & un-qualified prospects.

There's nothing like that feeling of 'losing' the house you want. You never forget it.

P.S. Residential Realtor over 13 years.

Thanks for the advice!