More importantly, to answer your questions Paula, FSBOs who work with buyer's agents typically do not pay the 6%, they pay buyer side only, which is typically 3% (price-fixing is illegal, these are merely observations). But when you pay for buyer side only, you are not able to get the word out through the many forms of marketing a full-service brokerage can, nor can you devote the time to all the tasks necessary, or be available all day every day as an agent dedicated to the sale of your place would be. The more comprehensive the marketing, the more traffic you get; the more traffic you get the higher the purchase price you are likely to get. There are a host of other reasons why FSBOs tend to get significantly less in the end than properties listed with an agent. In fact 84% eventually do list with an agent after failing on their own.
I understand not wanting to pay the complete fee, but a good Realtor will seem cheap even at 6% when you're at the closing table.
Brokers pocket listings.
NY is an attorney state, agents do not deal with contracts.
If I was selling a "cookie cutter" I would need an agent. In my case: landmark, condo and protected view are words that are rarely all heard together.
When I was a RE agent I found the selling of apartments the easy part: get the exclusive, show it a few times, agree on a price and wait for closing. (I did have 1 cookie cutter in the Nevada that took a few months to unload, that's a tough building: 1 Br, 580 sq ft with dues close to $1000/mo - yikes!)
Where I really earned my keep was in dealing with the buyers! (One of my co-workers kept all of his buyers information in one of 3 folders marked "liers", "cheats", and "time wasters".)
Wish me luck!
Also NY is an attorney state, so agents do not handle the contracts.
I used to be an agent in Manhattan, I know of what I speak.
The key to any listing, FSBO or agency listing, is exposure. Any website that you can get on will be your best bet.
Rockinblu may think his blog is boring, but it will provide you some good advise for FSBO selling. Good luck
Tell everyone you know that you are selling, including your Facebook and Twitter friends, and ask them to spread the word. When you post your apartment for sale on all the major real estate Websites, consider indicating that you are willing to work with buyer's brokers. Some may offer to advertise your apartment for free in an effort to draw buyers to your property. It won't replace the maximum exposure you'd gain from having an agent on your team but it will certainly get more eyes to view your property.
I noticed on HGTV, "Selling New York", the agents will host lavish parties for potential buyers, investors and I believe they invited some other agents. I am not sure how the other agents worked out commissions without MLS, but I am sure that could be negotiated. Why not invite folks to an "open house" party? Maybe you could use those that don't qualify to purchase as future tenants.
One of the biggest skill sets that a good listing agent posssesses is a network and a database. We know who & where the buyers are located, when and why they want to buy. We use the opportunities of open houses, floor duty, advertisements (internet and print), social networking, and just our general lifestyle to build our list of clients. It takes a great deal of time, but its a great way to get qualified buyers "in". It is the one piece of the puzzle that unless you kept you data base from when you used to be an agent you will be missing and may find in the current market could be the necessary piece to get your property sold quickly and for the most money.
Good luck with your endeavor. Please keep us posted on how this works out for you.
If you are offering to pay a buyer's agent, you may as well hire a selling agent to represent you. Why? It will save you time, money and frustration in the long run. Paying only a buyer's agent is a disservice to your own cause. Your are throwing away thousands of dollars to a buyer's agent to negotiate against you.
The buyer nor his/her agent will never tell you their bottom price nor disclose the entire truth. You need a representatvie as your buffer or you will appear vulnerable. In the end, it is the buyer broker and selling broker with their expertise induce both parties to come to an agreement where they can both benefit.
Since you offering to pay a commission, you might as well hire a selling agent. This is will save you time, money and frustation in the long run. Offering to pay only a buyers agent is not to your best advantage. You are paying a buyer's agent thousands of dollars to negotiate against you. You need a broker to represent you so that you can sell at the best price and not appear vulnerable.
Do you think a buyer and his/her agent will tell directly upfront what their bottom line is? Buyers will never disclose the entire truth directly to the seller nor will the their agent. In the end, it is the selling and buying agent that help the buyer and seller come to an agreement that will benefit both parties.
Hope you were able to sell your place since June 2010!
Below is a link to your blog promoting your condo. You apparently are willing to pay 3% buyer side, I guess you have a problem with paying 2-3% for the listing side. Don't you think any buyer is going to want to split that 2-3% "savings" on the listing side so you really are saving 1-2% without a Realtor? That 1-2% comes out in finding the buyer that likes your home the most and is willing to pay the most for it. That 1-2% is negotiation skill too!
While we don't have an official MLS in Manhattan (yet), all brokers now have access via VOW's (Virtual Office Websites) that include every listing in the city. [Not a shameless plug, but you can see what I mean by going to my website and clicking on "Search for All New York City Listings" in the Buyer's section] Most of the brokers in Manhattan belong to REBNY, and we are required to enter listings into the system within 48 hours (mine are entered the same day that i take a listing). The individual brokerage systems pick up this feed, and all 6000 +/- agents have visibility. All REBNY members are required to co-broke their listings. Hence, no "pocket listings" like in the old days.
The world has changed, and it is taking an average of 180-210 days to sell an apartment in Manhattan (depending on which report you read). Gone are the days when we would have four offers in our folder by the time the first open house was over. It's taking a lot more time and money to market an apartment; even the Pre-war "non-cookie cutter" apartments.
To attract buyers you can try open houses, putting your listing on the syndicated services (Trulia, StreetEasy, NYTimes.com, Zillow, OpenHouse, etc), posting on Craig's list, mailing a letter to everyone in your building, advertising in the Sunday NY Times, and other methods mentioned in several answers here. If there's a doorman, make sure that he knows the apartment is for sale, and has your contact information so buyers can contact you directly. Make sure that you have good photos on the syndicated sites.
You can also let your real estate attorney and lenders know that you want to sell. They have contact all the time with people who are in the market.
I occassionally post FSBO apartments on my website and in my newsletter to help the owner attract a buyer.
By the way, there is indeed a Manhatan MLS. It is in it's infancy and REBNY is the highly visible and preferred organization but it is there.
Good luck with your sale.
Of course I am not sure of the type of property you have, but perhaps you should have an open house- if you live in a high rise building, print flyers and post it in your building...even hand out the flyers at the nearest subway station...you might be surprised by the response...
Also...if you like, I would be happy to recommend a Manhattan realtor that would accept a 4% commission
Deals are taking real work from the beginning to the end. The banks are on a war path and it takes skilled agents and brokers to keep the deals alive in this market. Banks want close to perfection from buyers and buyers are taking longer to get qualified, contracts are expiring and many buyers are not renewing them because the banks are taking them through the ringer.
I suggest you have an agent work along with you at least when you find the buyer yourself and then the agent will give you a discount on their fee. This is not a market for FSBO's when the banking industry was closing deals in the blink of an eye, selling real estate in this market takes skill and the patience of an angel.
Brokerages often provide institutional advertising and marketing support - web portals, print advertising, and agents with expansive Roladexes of prospective clients.
I truly don't know how you compete with that, frankly. Put it on Craigslist and hope for the best?
Exposure is an important part of what agents provide - I suggest you give yourself a defined period to sell FSBO, and if you don't succeed, then hire a good agent. Generally speaking, the passage of time is not the friend of a seller when it comes to final sale price.
Unwavering Commitment to Service
In my experience, FSBOs may have done OK a few years back when Buyers outnumbered Sellers and any habitable property was selling quickly. This market is entirely different. Add to that, that Buyer's agents are aware that, when dealing with a FSBO, their work doubles, because there is no agent on the other side to help make sure that all the details are done. Would you risk your Buyer's welfare on that? Probably not. So, my answer stands - unless you are skilled at ALL the things a good agent does to sell a home, then you should hire one. You'll probably NET more money and sell it faster.
Do internet marketing as that's the way to go in the WEB 2.0 times.
After you take the pictures go thru them and make sure your paint colors don't look garish. Internet buyers click thru pictures fast and make decisions then and there if they want to come see your home. You can loose your buyers before they ever get in their car.
I have just a few points for you to consider. If you were a Buyer relocating to another city, would you use your scant house-hunting time driving around looking for a FSBO, or would you find a great agent to show you virtually ALL of the available homes, especially since you know that the agent won't cost you a dime more?
If you were a first-time home buyer, wouldn't you want an experienced agent to explain the process and help you with the details?
You are trying to save a few percent on the sale. So is the typical Buyer who shops FSBOs. How's that going to work? FSBO Buyers are often the same as Flea-Market Buyers. They're looking for bargains, so they don't shop "retail". They want that same saving, so you're probably not going to get it anyway.
Even those FSBO Sellers who were successful a few years ago might find the present market environment a bit more challenging, when Buyers are few and Sellers (often at deep discounts) are plentiful. How well do you like negotiating with appraisers to try to justify your full value in a neighborhood with recently foreclosed properties? We REALTORSÂ® have to do that every day.
We understand that, to those who don't do what we do, it looks easy. They don't see the background work with the lender, the escrow company, the hundreds of details that can kill a deal. Some FSBOs are actually successful, either through skill or luck (take either). Most give up frustrated and wind up selling their homes for less than they could have gotten if the home had been priced right a marketed right in the beginning.
Unless you have lots of time for trial and costly error, why not call a star agent who has a great track record and solid references, tell them what you need, and let them get you the most NET proceeds you can get out of your home in this market. You'll be a lot better off.
Doc Stephens, REALTORÂ®
Keller Williams Realty
San Antonio, TX 78230