Help Me Talk My Mother Out Of Trying To Sell Her House "FSBO"

[arwalden]

Apparently she thinks it's going to be a breeze... as easy as signing over a car-title to the first cash-buyer. :eyes:

She thinks that she'll save money by doing it herself. But I know her... she's easily frustrated, very hasty and impulsive, and can be very gullible, too trusting, and easily taken advantage of.

I'd like to send her an email that asks her a series of questions (or just point out some basic facts and risks of FSBO transactions) that will make her rethink and reconsider her decision.

Real estate agents are licensed for a reason, right? If it was so easy, then EVERYONE would do it and selling a house *would* be as simple as signing over a car title.

I think she's making a big mistake to try and avoid a commission. What can I do or say to make her see things my way?

[Texasgal]

1. I agree with you!!

I would see if you can pull some stories ( am sure they are out there ) Horror stories of people handling these types of things themselves. Maybe that will help her realize what she is doing.

IF I may... how old is she?

[arwalden]

5. She's 68.

[Texasgal]

11. Hmmm... still young...

I'd look around for horror stories. Maybe that will set her straight!

[blondeatlast]

2. "Freakonomics" might be helpful--he talks a bit about why

you need to push the realtor for the full value of your house.

Other than that, I can't help much, but I do know it's something I'd never do myself.

[mainegreen]

3. You can't avoid commission easily.

Since the buyer knows no agent will be getting a commission, they will automatically knock off the price of the house the agents commission in their offer. Why would they pay equal to a brokered house when the service they receive is less?

[Midlodemocrat]

4. Is the market really hot where she lives?

Because houses on my street are literally selling the same or next day.

I think it is because the word is out that I live here.

:hide:

[MissB]

6. I knew it!

Damn you!

[Midlodemocrat]

9. LOL. Seriously, though they are going in 1-2 days.

It has a lot to do with people wanting to be in this neighborhood because of the new high school opening in Sept.

Our house went up in value almost $100,000 in 18 months. And, this is VA, not CA or NYC.

[MissB]

12. That is very cool.

Pdx is kinda like that in places. My old house sold a couple of years ago the day after its open house. Same house sold last month in the same time frame.

I don't think schools have much to do with Pdx's hot housing market. Much of Portland is still stuck with sucky schools ala Doonesbury.

Congrats on the increase in house value. :toast:

[Midlodemocrat]

14. Let me tell you, my husband was elated.

I have a brother in Northern CA and his house doubled in price from $350K to $700 in four years. He did nothing to it in terms of improvements, just maintained it.

My poor husband has been lamenting that he should have purchased a house when he lived in CA; he could retire. So, he is very happy.

I don't think it will go too much higher. There does reach a point where pricing houses out of people's reach is really, really bad for everyone.

[henslee]

31. I know someone in Winchester who's house really appreciated quickly.

[arwalden]

8. It's Yorktown... Things Are Pretty Hot In Her Neighborhood.

Because property on the Hampton/NN Peninsula is so scarce... and because it's surrounded by water... the only way for any new growth is to head UP the peninsula into York County, Williamsburg, Grafton, etc.

[Midlodemocrat]

10. You know, she might be able to do it.

But she would have to put no agents in her ad.

Would she consider HelpUSell? They only take 1/2 the commission traditional realtors do.

[arwalden]

15. I Don't Think She Has The Wherewithal, The Stamina, The...

... the patience to do it all herself.

She was in a panic when she tried to sell her extra car and pretty much trusted the buyer to tell her what to do and how to do it (she got lucky).

Filling in her tax forms was a nightmare for her. She got ripped off (about $6000.00, maybe more, by trusting a fly-by-night handyman who scammed her into many unneeded and unfinished "repairs" and other home improvements).

Finances and financial transactions, contracts, figures, dealing, being suspicious and cautious... definitely NOT her strong points.

Honestly, she's very gullible and very trusting. I see disaster looming.

[Gidney N Cloyd]

7. I bought my house directly from someone I knew...

... about six years ago. No agents but we each had RE lawyers.
It was still a nightmare. I can't imagine going that route with strangers.

Also, the FSBO's around me don't seem to be moving too fast.

[azmouse]

13. I found this:

Is there any reason why I shouldn’t sell my house myself and save paying a commission?

Selling property is a business transaction. If you have the experience and qualifications to do this kind of business, then go right ahead. Ask yourself what you would do if you had to have surgery, if you had to go to court, if you needed a tooth pulled. Would you do these things yourself? Probably you would get a professional to help you. That’s what you should do when you must sell property. A professional realtor can advise you, can create a buffer between you and an emotional prospective buyer, can make sure you comply with the laws regarding real estate sales, and can make sure your buyer is financially qualified to buy your home. Listing with a licensed real estate agent is statistically likely to get you a higher price for your house in a shorter amount of time.

[arwalden]

17. Excellent... Thanks!

I'm cutting and pasting that into an email I'm working on for her.

[azmouse]

20. I had a real estate license about 15 yrs ago.

And I wouldn't sell my own house by myself today.
I hope you can persuade your mother to get help selling. It's worth the commission. And realize the amount of the commission is negotiable.

[arwalden]

18. Perhaps A Week Or Two Of Dealing With Unqualified Buyers...

... might change her mind. You know... the ones who just drop by and ring the doorbell expecting to be taken on a tour of the house (even though the sign says "by appt only" they figure they'd ask anyway).

[KitchenWitch]

16. Not sure if this is true of your area

but around here, there are agencies that do sell for less than half the "normal" commissions. You may want to have your mom check around. The benefit is that her house gets listed on the MLS, which, IIRC, her house would not as a FSBO.

[LaurenG]

19. It's difficult enough to sell a house with an agent

I hope she knows real estate laws or hires an attorney. It's tricky.

[blondeatlast]

21. for many people, their home is their most expensive and profitable

investment.

I'd say that's more than reason enough to avoid the amateur hour--and the companies that "help" with low commissions will often settle on a first offer even if lower than reasonable (as I mentioned upthread, this is the issue discussed in "Freakonomics.")

[greatauntoftriplets]

22. Ask her how she intends to market the house?

She'll be competing with stuff like realtor.com where photos, room dimensions, and lots of other information is online. I found the condo I am buying that way.

Secondly, how will she know where to price the house to be competitive with the sale (NOT asking) prices for similar properties in her area?

I hope these help.

If all else fails, tell her you know someone who sold a house in less than a week and used a highly qualified realtor who knows the market.

[MadHound]

23. Sorry, can't help you on this one

I've bought two houses and sold one, all FSBO. I had few problems, got the price I was asking, and was able to pocket the money I saved by not using a realtor. This is probably not for everybody, but in my case it worked out well.

[Zookeeper]

24. Like AZmouse, I also was a Realtor about 15 years ago...

and I'll give you the same advice, plus a couple of other points.

Even if your mom was able to handle the showings and negotiations (which can include price, repairs, downpayment, inspections and contingent offers) herself, she will still need to hire a real estate attorney to handle part of the transaction.

I have bought and sold two houses since I left the business, and even though I know the process, I hired a Realtor. Buying and selling a home can be very emotional and nerve-racking. There is a reason the real estate agent keeps the two parties separate until a contract is signed.

Just preparing her house for showings and the move itself should be more than enough for your mom to deal with!

Good luck, Arwalden!

On edit: Also, I've seen many cases where a FSBO goes on the market overpriced and/or improperly "staged" and doesn't sell. So, the seller ends up hiring an agent eventually. Meanwhile, the seller has wasted time and energy, along with taking the risk that the property has been on the market long enough to appear shopworn (which creates suspicion in the buyer's mind: "There must be something wrong if this house hasn't sold yet").

[arwalden]

25. Good Points... I'll Find A Way To Work Them In To My Email

... to her. I think those things will be very helpful. Thank you!

[WritingIsMyReligion]

26. Tell her what a fucking pain in the ass house selling is.

Sucks up all your time.

Or so my real-estate broker parents say.

:silly:

[tjdee]

27. If she gets a good realtor, she won't even notice the commission because

the selling price of her house will be higher.

And as someone said, she *still* has to pay a real estate attorney to work out the contract.

I agree with everyone else... good luck, parents can be reeeeeally stubborn. :eyes:

[trof]

28. Another former realtor chimes in.

Pretty much what's been said above, but...
If she's really dead set on FSBO, maybe you can get her to compromise.
Try it for 30 days. If it doesn't fly off the shelf, then hire a realtor.

If she needs some more convincing...
She's inviting strangers into her house that she doesn't know a damn thing about.
All they have to do is call her number, or just show up.

Axe murderers.
Rapists.
Armed robbers.
Child molesters.
Bush voters.

Realtors at least know a little bit about the people who are their clients.

[MissB]

32. They certainly know who to watch out for.

There was an article in our paper recently about a man who was going around to open houses and rifling through medicine cabinets to steal medications.

[Zookeeper]

37. Excellent point, trof.

I knew an agent who was assaulted when she was holding an open house on a Sunday afternoon. She never worked an open house alone after that.

[TheCentepedeShoes]

29. I tried selling my first place

(a condo) as a FSBO. Only reason was that Mr 'ped was a licensed RE broker, although he specialized in commercial property. (What??!! Me peddle houses??!! LOL). So I wasn't afraid of the contracty stuff. Still, after a month of ads and open houses, nary a nibble. Called the guy who rep'ed the woman I bought the place from and had a serious buyer in one week. Second place (a 3/2/2 on a good sized lot) Mr 'pede just put his sign in the yard on Wednesday, I had a contract by Saturday afternoon. It was a very hot area. This was in FL. I've since taken the TX state required RE courses. I didn't do it to get licensed - it's too tough a job IMO - but more looking at the time toward RE law/title work. The standard residential contract isn't all that tricky if you take the time to break it down. But for someone who may not be inclined to do that a good agent will keep bad stuff from happening. I vote agent.

And best of luck to her. :hi:

[Pithlet]

30. The house across the street from us

was FSBO for months. I just noticed today the sign was replaced by one from a major realtor. Feel free to relate that to her if you think it would help. It sounds like it would be best for her to go with a realtor. Good luck, Arwalden :hi:

[cedahlia]

33. My Mom tried to go FSBO with her house, and regretted it

She thought selling her house FSBO was the smart way to go (why pay the realtor the commission and all that, when you can just DIY??) Well, the whole process drove her about batshit crazy! The seemingly nonstop, often incoherent calls to her cell phone from interested parties, trying to schedule showings of the house around her crazy swing-shift work schedule, and two offers that wound up wasting a lot of her time because the buyers wound up backing out...it all took its toll on her nerves. After 2 months of all the bullshit, she was pulling her hair out and gave in to calling a realtor. After getting together with the realtor, she got a good contract within a few days, and then settled about a month later. If she had it to do again, I know she would definitely just use a realtor...much less headaches and stress!

I would ask your Mom if she is ready for a potential barrage of calls that will waste a lot of her time, and also if she is prepared for the time it will take to do all the showings for said potential buyers by herself. I would also ask her if she is prepared to deal with all different kinds of people, some of whom may be rude, unreliable, insulting, or even creepy. Stuff to think about!

For what it's worth, I'm sure there are people who are successful going the FSBO route, but just from seeing my Mom's experience, I don't think it is for the faint of heart.

Good luck! :-)

[flamingyouth]

34. I agree with you.

People are tripping over themselves buying houses in my neighborhood, paying $20,000 or more over the asking price. But the one FSBO house down the street has been on the market forever. How much are these people saving by not actually selling their home? Man, what a hassle.

I'm so glad I had a Realtor involved when I had the fiasco selling my condo - turned out the first buyer was an ID thief among other things. Anyway, I got my earnest money out of it, and the Realtor dealt with all of that crap. He more than earned his commission on that sale, believe me.

[philosophie_en_rose]

35. She'll need a lawyer, if she doesn't have a realtor.

There may be liability issues related to the home that she should seek information about. Also, if she's going to go FSBO, she may want to consider a quit claim deed.

[AirmensMom]

36. We got an offer on our house just over a week ago.

We have a realtor and wouldn't even have tried without one. For one thing, we would have listed it too low. Also, we started out with a low commission b/c we knew him and he was trying to do us a favor. But a few weeks later, we found out that some of the realtors were steering clients away from our house b/c the commission was TOO low. So we raised it and then we got a buyer (who happens to be a realtor). They don't even bother to show houses FSBO.

Houses are moving pretty slowly here right now. I don't think we could have done it alone. It would have been too discouraging. I like having someone else figure out all the papers to sign, inspections, etc., once the offer is made. The moral support is nice, too.

I hope your mom comes to her senses.

[ScreamingMeemie]

38. Tell her you just talked to a friend who is a real estate appraiser who

isn't selling her OWN home FSBO. Real estate pros will know more about her area, be able to guide her in the right direction with concern to teasing up her house so it shines. In fact, agent listed sales tend to profit more to the seller than if they had sold it by owner. Also, the agent will handle all of the dirty work that she won't want to. Proper exposure is expensive either way.

Good luck though, if she's anything like my mother she will be a tough sell.

[ScreamingMeemie]

39. ...and another point I just thought of, buyers who are using an agent

won't look at her house.

[NewJeffCT]

40. We sold our last home by ourselves

It went on the market around this time 2 years ago - the market was hot, and I did a lot of research ahead of time going to open houses across town for a few months. We also had a few realtors do free market analysis for us to make sure we had a good selling price.

We had an open house the first Sunday and had 4 serious people, but ended up waiting until the next week and selling it to a young couple. There were really no problems and we met a lot of nice people.

I would advise your mom to make sure she gets a good local attorney familiar with the town's real estate laws. The attorney knows all the paperwork that needs to be done.