Home Selling in San Antonio>Question Details

Rvilla, Both Buyer and Seller in San Antonio, TX

For Sale By Owner Sign – In Response

Asked by Rvilla, San Antonio, TX Mon Jun 13, 2011

Though after reading the responses I found the majority of the post encouraging that this is a respectable profession. However, I found a couple one bit disturbing. The common thread to be that I MUST sell MY HOME in cooperation with a realtor. MY QUESTION IS. Where does it say that a realtor has to be involved in selling MY home? As one response stated "Educate his/her buyer on why it may not be a good idea to purchase a FSBO if they will not cooperate with a buyer agent." IF the agent is gong to “educate” their buyer why they should not consider my home. Is this not the same as removing my sign? So is the take home message that if I do not agree to show my home with a realtor then I am black listed? I am certain there are some honest, well meaning, professional people in this field. I wish them good luck and as we all know the market has to come back up. However, as another realtor posted “It is not surprising then why we Realtors rank so low in trust."

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As a FSBO success story, I always find it interesting when real estates agents bring up "the other agent may end up doing the entire transaction for half the pay as most FSBo are not experienced in Real Estate transactions, laws, title companies, etc." That is why you have a real estate attorney on your team. The mortgage company handles the title, appraisals, etc. You don't have to have an RE agent to sell your home. You have to THINK like one to do it. If you are not knowledgeable and don't have the time it will take, you probably should use one. Interview several and be VERY selective. Like any profession, there are a lot of bad apples out there. I have used a RE agents for 3 real estate transactions - 3 purchases and 2 sales. After the bad experiences I had, I chose to sell my last home myself.
1 vote Thank Flag Link Tue Jun 14, 2011
I wish you all the luck on any present and future sales. I hope some day your prespective on us agents changes, as there are still quite a few of us good guys out there.
0 votes Thank Flag Link Mon Jul 18, 2011
Stop! Realtors in particular! If someone wants to sell their home on their own, they have every right to do so. The selling of ones home is an intimate thing and some people want to be involved in it! I only ask those that find that the experience is too much and they become overwhelmed that they please drop their pride and grab their senses and find a Realtor to help them,!
0 votes Thank Flag Link Mon Jul 11, 2011
Is there a particular reason, other than saving the commission, why you do not want to work with a real estate broker? Contact me, if you have a special circumstance as to why you are hesitating to list it with a company. Selling your own house is like trying to find a needle in a hay stack. Anyway, contact me and we will have a real conversation about your situation. Remember, we do not get a commission unless we sell your house.
0 votes Thank Flag Link Mon Jul 11, 2011
It's risky for us. We never know what knowlege the seller of a FSBO has.
So often we see the deals fall apart.
So often we see the houses overpriced.
The buyer thinks "DEAL" when they see the FSBO sign. They're thinking right off that they are saving the commission.
However the seller also thinks they are not paying it. So when we often see FSBO overpriced by 5-10% and the buyer thinking they're saving 6-8% immediately we're 11%-20% off of a match.
You may be the exception to the rule, but we never know that.... I think it is a pretty rare that someone has bought and sold 1/2 dozen homes FSBO successfully.
0 votes Thank Flag Link Fri Jun 24, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
As Realtors, we are sworn to uphold the public trust in all real estate transactions. We all have good intentions and just like any profession, there may be a bad apple, ever so infrequently. Realtors are here to assist you, the public, in your real estate transactions.

If you feel confident & knowledgeable in handling your own real estate transaction; which you may be, if you are an attorney or mortgage broker, then you do not need a Realtor. Otherwise, we have invested our time to be educated in guiding you (buyer & seller) in the real estate transaction with professionalism, proficiency and in reasonable amount of time from documentation to closing. This allows you time to do other things like plan & schedule your move and spend more time with your family and their sports schedule. Let us handle your Real Estate Transaction because that is our "job."
0 votes Thank Flag Link Tue Jun 14, 2011
Black listed from who, If you wish to sell your home yourself, I am all for you, I have no ill will for FSBOs nor do most of my colleagues. We are here for the 99% of people that wish to have the sale process done by professionals, the same as not everyone can put their own roof on, set tiles on their floor, or replace windows. As for Realtors ranking so low with Trust, maybe by you but in my community we are well respected, or advice well considered and our rank in Trust by the community is rather high! Of course coming on here to bash Realtors on a Realtor generated website is a bit brash for you isn't it! Sell your home, make your signs, have you open houses, and stop worrying about what we Realtors think!
0 votes Thank Flag Link Tue Jun 14, 2011
To clarify I do not want Realtors to "include me in the mix". I simple do not want the buyers in my area "EDUCATED" why they should NOT consider my home or my sign taken down when they have a showing because I do not wish to use a realtors services. I am certain that a GOOD realtor does have things to offer. However, in my past experience the time I sold with a realtor I was sold out and though it is a necessity to buy with one I find that with a little research, which is now available on the computer, I am not able to trust what they present ie: comparables etc… We all have to make money and it is silly to think/post that someone would expect that any service for free. It is understood and not a problem when you get the service you are paying for. Can I mention here that when I have a showing and my home does not meet the potential buyers needs I will recommend homes that I know of on the market that are listed with realtors (I don't even call you for a percentage, educate them on the horrors of realtors and as a bonus I leave your signs up). That is called spreading good will, not negativity. We ALL live in this COMMUNITY. Over the past 30 years I have sold all but one of my homes by owner (I moved out of town and that was the realtor that sold me out) and have bought 2 of our homes by owner. No problems, all legal. All the forms were used, inspections and disclosures up to pare. Everyone happy. Yes, it was more work on my end but it was not impossible and illegal. I would have to agree with FSBOsuccess, I used a solid title company and a real estate attorney. Saved what I consider the hassle of an agent (only my opinion) and some considerable money. This is my choice. No education on why realtors are bad, no signs removed. Because I a am FSBO does not mean I am trying to avoid a short sale, desperate, trying to hide something or get over on someone. I simply have no desire for RE agents to bring in unnecessary traffic through my home just so they can say they are showing it or telling the buyers that I am in a divorce or relocating or, or, or, we all have enough experience here to know the stories for both sides to make the sale. I guess I always doubt that the agents are ever really working for anyone but themselves. They seem to just want the sell to make the money and to move on. Some money is better than none to them. Where this is my home, my biggest investment. I guess I am just yet to meet a true Real Estate professional that is also a a Real person. For a mirror I hope you will all go back and read the responses from both post, especially the first one and ask yourself if you had your largest investment would you trust the people writing most of these responses? I know the market is tough right now but this is my home not a used a car. Some respect would be nice. I posted my questions trying to get a feel for the Real Estate community, thinking maybe I was wrong, maybe I should list with an agent with sales being so tough. After all there are ALWAYS bad apples in ANY field. I feel I have my answer. Good luck to all, this was not to be a post of ill will. I hope you do some reflection and will treat FSBO as well as the clients that trust you with a little more respect for their investment. Maybe your profession will move down from the top 10 least trusted (as pointed out by a fellow realtor, not me). It is apparently there for a reason.
As for me, I believe I will remove my listing for a while and maybe the sharks will leave the water.
0 votes Thank Flag Link Tue Jun 14, 2011
I believe that most of the people who are negative about using a Realtor, are young people:
Us Old Foggies have picked up a thing or two in our years, and hopefully learned from our mistakes.
Going back a few generations, we would see a society that didn't have much communication; pretty much limited to books and newspapers. Radio and TV opened new sources for people to expand their knowledge.
But as late as the '50's, people were self reliant; they had to be. This was pretty much limited to simple things and didn't include Legal, Medical, and Financial matters.
The Computer changed everything, and young people cannot fathom what life would be without a computer:
Now, if I want to sell my house, I simply Google "Disclosures" and I'm all set. Right?
Wrong: Realtors take seminars on Disclosures. There are volumes we have to read to understand Disclosures, including all the laws, both State and Local. In California, we have about 6-7 forms we must fill out to be included in the packet. And the consequences of not doing this, or doing it poorly, can be catastrophic; to the Seller, the Buyer, the Agents as well as their Brokers! As Realtors, we hear and read the horror stories every day, and we could bore you to death.
"Disclosures" has become a four letter word for us; we tighten up every time we hear the word. And not because we are required by law; but rather because we are trying to protect our Client's interests.
So, as a FSBO Seller, do you know and understand "Negligence", "Easements and Encroachments", "Deeds and Titles", "Breach of Contract", "Appraisals and Closing Costs", "Leins and Disclosures" and a hundred other things.

In answer to your question about "Black Listing"; When we're compiling a list of possible houses for a Buyer, we preview a lot of houses, and we will stop at a FSBO and ask the owner if we can show the house and will they cooperate on the commission. If the answer is NO, why should we try to help them for free? Would you?
We are trying to earn a living the same as you. Why should it be a blight on our reputation if we won't do something for free. Will a plumber fix my leak for free, just because I tell him I don't feel like paying him?

I really would like the know the percentage of FSBO's that end up in Arbitration or Lawsuits?
0 votes Thank Flag Link Tue Jun 14, 2011
FSBOSuccess. I am very happy for you that you were a success but even you said yourself that if someone doesn't know what they are doing they should hire a an agent. If you are going to Copy and past part of my answer into yours should be put in quotes. I said that because I meant it. Most FSBO sellers do not know what they are getting into and having a realtor by their side (a good one) can oy help them.

Brenda Mullen
0 votes Thank Flag Link Tue Jun 14, 2011
I have closed thousands of loans over the years and can count on one hand the number of transactions that did not include a Realtor. My closing attorney says her number is higher than mine, perhaps as much as 1% of her volume were between buyer and seller without a Realtor. But she added that 99% of that 1% were between relatives. I have never heard that tidbit before discussing this with her. So if you are going to sell the property to your uncle there is no need to hire a Realtor.
0 votes Thank Flag Link Tue Jun 14, 2011
As you can tell from my other answer... I don't sugar coat things....

Here is the facts... You don't need a Realtor to be involved to sell your home. The fact is.. you can write a contract with a buyer on a napkin. Sellers and buyers may agree to whatever they want to.

Here is another fact: Most buyers who are pre-approved on their financing are working with a buyer's agent. These buyers do not want to have to pay their realtor out of their pockets in order to get a For Sale By Owner home, when the owner does not want to work with a Buyer's Agent. Is that sad? Sure it is. But, when they have to put down a down payment, pay closing costs, etc... adding their agent to the fee sheet is usually not on the menu when they know that any home listed in the MLS or a Builder will cover their agent for them.

Is it not worth 3% to you to have someone sell your home for you when they have a buyer?

I always find it amusing how some people do not at all value what a good Realtor brings to the table. "Ahh, they are not worth the commission." When indeed, they are worth every single penny. A good Realtor will find you your buyer in the first place, make sure they are qualifed, handle all the paperwork, coordinate all the inspections, work with the lender on anything they need to make the loan go, and in the end... take away all of your stress. There is a lot that Realtor does behind the scenes that the general public does not give us credit for...

I don't rank low in trust at all. I cant think of anyone I have worked for in the past 15 years that could honestly say that I did not do a great job. I can think of a few people that I couldn't make happy if I gave it away, but when you deal with the general public, and you do enough business, you already know that not everyone will like you as a person... but no one can say I did not do a great job, and no one will ever be able to say I was not 100% honest all of the time.

Here is another fact: Most For Sale By Owner sellers OVER PRICE their homes. I'm not saying that you have done that, as I have no idea what you have your home listed for, but if you look at FSBO sellers overall... they think their home is worth $10K more because they lived in it... We see it more often than you can imagine.

Fact of the matter is.. There are plenty of Realtors our there, me included, that would sell your home for you at no seller commission at all (you saved 3%), as long as we get to be your buyer's agent. Since your buyer agent doesn't cost you anything on the buy side... it becomes a win-win. You sold your home without having to pay a full Realtor Commission, you get an agent who will work hard for you, help you get a much better deal on your purchase than you could have gotten on your own, and you didn't have to pay a thing. Like my Daddy always said, "You can't go broke making a profit" Your home will sell a lot faster, and if you look at the statistics, you will probably actually NET MORE MONEY EVEN WITH THE COMMISSION to the buyer agent. The statistics don't lie.. Realtors sell homes faster and for a lot more money than For Sale By Owners do.

In reading what you are writing.. I get the feeling that you would like these Agents have their buyers consider your home in the mix.. But, If you are not willing to pay an agent who brings you a buyer, then it is not a fair or realistic expectation for any agent to bring their buyer to your home. This is how we pay our bills and feed our families. Would you go to your job and work 40+ hours and donate your paycheck back to your employer just to be a "good guy" I am thinking the answer to that is "probably not"

What you are not seeing is the fact that that agent had to spend hard earned dollars to market, find the buyer, qualify the buyer with their favorite lender, spend tons of time and money on gas showing them multiple homes. Running them neighborhood reports, send them all the homes that fit what they are looking for. Educating them on the process, and tons of other stuff that does not show up on the stat sheet. We have already put in tons of hours and money before they ever even started to look at homes.

So... ask yourself the honest question.. If they had no hope of getting paid for their work, how can you expect them to bring a buyer your way?
Web Reference: http://www.SAHomeExpert.com
0 votes Thank Flag Link Mon Jun 13, 2011
You do not have to use a Realtor to sell or buy your home. It is a common practice that is used by the majority of sellers or buyers of real estate. Why? Due to the fact it is a tremendous benefit that is available to you. Our profession strives to keep everyone protected in the transaction. Yes, you pay a fee for this professinal service and the Realtor should earn it. Do you know all the correct disclosures you should be giving the seller or buyer? Do you know what you should be looking for in an offer? Do you know the sales price you should offer your property at? How about the financing? Are you willing to show your house to anyone at anytime?
As professionals, we value our clients, we work with them constantly and have a very strong relationship with them. This is how we earn our living. Should our client want to buy your home that is not a problem. The Realtor representing the buyer does educate the buyer because we have to protect our client. The fact you don't want to work with an agent or pay a fee does have an impact. We bring value by bringing a qualified ready buyer to you. Do you think this is worth something? We think so. It does not make you "blacklisted" there is no such thing.
I stand ready to work with to help you understand the role Realtors play in all this. We are here to serve.
0 votes Thank Flag Link Mon Jun 13, 2011
Hi Rvilla,
Glad you responded again and am also glad to hear that you liked most of the answers. I didn't read them all, but can understand a little if a buyer's agent told you they may counsel their buyer against FSBOs. This doesn't automatically mean they won't show your home. However, there are two issues at hand.

First, if you are not willing to pay that agents side of the commission, then the buyer will need to pay that. Most buyers do not want to do that.

The other issue is that even if you are offering a one sided commission, the other agent may end up doing the entire transaction for half the pay as most FSBo are not experienced in Real Estate transactions, laws, title companies, etc. There is a lot involved with a Real Estate transaction. Additionally, if that Realtor does bring you a buyer and is working to close the transaction, you may think that provides you with representation and if simply doesn't. The buyer's agent works solely for the buyer and their interest. They are also fairly trained in areas to get that buyer what they want, which may leave you without the most money. Anywaym you can check out my blog on this site Goin it Alone Selling your Schertz Texas Home. It will give you some insight into what I am talking about.

Other than that, good luck on selling and again, if you do want some help and representation feel free to give me a call and perhaps I can assist you.

Brenda Mullen
Realtor(r), ABR(r), e-Pro
Smart Moves Realty
brenda.mullen@sbcglobal.net
210-807-0819
0 votes Thank Flag Link Mon Jun 13, 2011
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