Home Selling in 08889>Question Details

Megan, Home Seller in Whitehouse Station, NJ

Thinking of trying to sell our home by owner...after working with 2 big Real Estate companies we have not

Asked by Megan, Whitehouse Station, NJ Tue May 20, 2008

been able to sell. The only way I can drop the price to fight our location issue is to try to sell on our own. Will realtors still show our home if we offer to pay 2.5% to them ?

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Realistically, many will show the home; some won't. But you're building in two problems, where total problem is greater than the sum of the parts. That is: (1) Going FSBO with (2) a reduced commission. A reduced commission, in dollar terms, isn't enormous. But it does signal to some Realtors that you're trying to "cheap out," and that they may have other difficulties dealing with you. And going FSBO suggests to some agents (and I'm not agreeing with this, just telling you how some perceive it) that you're hostile to agents. Combine that with a reduced commission, and you have some challenges. Plus, in many FSBO situations, the buyer's agent knows that the transaction won't go smoothly.

You seem (from your question) to be suggesting that a lower price is necessary to sell your house, and that a drawback to your house is your location. Can you clarify "location"? And have you run the numbers and feel fairly confident that dropping your price by 3.5% (presumably the amount you'll save in commissions if an agent brings you a buyer) is sufficient? If you are, then give it a try. Realistically, you won't be in any worse shape than you are now.

Still, I'd suggest making sure the commission you offer to pay is fully competitive with what the agents in your area are expecting.

Hope that helps.
2 votes Thank Flag Link Tue May 20, 2008
Don Tepper, Real Estate Pro in Burke, VA
Some agents will and some will not show your home. Why? I have heard agents complain that working with FSBO's means twice the work for half the pay. Without agent representation, the seller will be heavily relying on the buyers' agent all through the transaction. That is what I have heard and it is not the way I do business. Maybe some of the agents who won't show it can add to that reasoning.

I will show houses that are FSBO and here's why I do it: I believe it is my responsibility to know my market area. All of it. Not just listed properties, but FSBO's as well. This way I can represent my buyer's best interests. Before I show a property, I will drive through the neighborhood and call any of the FSBO's that I see for sale to see what they are offering--just in case it is what my clients are looking for, Then, if we run across one while we are out shopping (one that I didn't know about) I will pick up the phone and make the call with my clients in the car to see if that property is right for my clients. And, if the seller will not cooperate with the FSBO, I will still recomment they see it on their own and will do what I can to help them through the transaction should they decide that is the house for them.

Having done that in the past (helping a client work with a FSBO who is not paying a buyer agent commission) I can tell you that once it worked out for my buyer and once it did not. The time it did, the deal died twice because the seller didn't know how to negotiate and work the transaction through. I did a lot of work for my buyers, advising them every step of the way, and they got the house they wanted at the price they wanted. Those buyers have been an unbelievable source of referrals for me! The second time that it did not work out, those clients bought a house working with me, knowing for sure I always had their needs first and foremost.

I would just add that I believe that it doesn't matter so much what company lists your house as much as it matters what agent lists your house. There are good agents and bad agents in all companies. Find an agent with a good marketing plan, a proven record, and price your home right. Price is key. If you are priced right and have excellent advertising exposure, your house will sell.

Good luck
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Thu May 22, 2008
The issue is not so much if they show or don't show. The root issue is how do you communicate to well over 4,000 agents in the Hunterdon/Somerset coverage area that you will offer a commission for a successful closing with a buyer they bring? In today's market, we are seeing large number of "short sales", which, if not handled correctly means the agent may not be compensated at the closing table regardless of your willingness to pay. This combined with a lack of exposure to the agent population increases the probability that your home will not be shown. An interesting statistic is that regardless of where a buyer sees a home (internet, newspaper, drive-by, etc.) 90% yes 90% of buyers will go through a Realtor to buy a home as per the Naional Association of Realtors. When you combine these issues, the realistic answer is that you will see less overall traffic. This decreased trafic will probably mean an elongated time to sell. In a correction market the longer your on the market the more your homes value decreases with the market. The "location issue" you mention can always be overcome with "right pricing". Also accordig to the NAR a FSBO has a 15.4 lower median sales price than a home listed with a full service brokerage. I cover the area and watch for all available properties. I have not seen your home's availability as a FSBO. Please send me your property information and I'll see if I have a buyer/property match. Does your property have any commercial zoning? I know that Whitehouse has a large Village Commercial zonng area.
Web Reference: http://www.waynefsmith.com
0 votes Thank Flag Link Fri Jun 13, 2008
Debt Free Dave and Vita,

Is it really true that some agents won't show FSBO homes because of commission and lack of representation? Is there a way to identify them so you can make sure you don't work with someone like that? If the FSBO isn't willing to pay a commission, the realtor should communicate to their client that there is no compensation from the seller here so the buyer will have to compensate them for their services, and let them decide if they want to see the home, but specifically not showing the listing because you don't like what the seller has done in terms of an agent is unprofessional at best and potentially unethical.

This type of behavior is why the NAR is going to court against the justice dept for anti-competitive behavior. http://www.realtor.org/law_and_policy/the_department_of_just…
0 votes Thank Flag Link Tue May 20, 2008
My question is, why didn't it sell? Did you receive showings? Any Offers? What feedback did the realtors who showed your house give you? How was the property marketed to find a buyer? How long was it on the market? If you want, email me directly at caroleisenstein@prunewjersey.com
0 votes Thank Flag Link Tue May 20, 2008
What is the location issue?
0 votes Thank Flag Link Tue May 20, 2008
Hi Megan,

Absolutely yes, no agent will not show your home for a 2.5% commission. If the house is right for their buyer, and your price is right for the market, it will be shown.

Web Reference: http://www.marcpaolella.com
0 votes Thank Flag Link Tue May 20, 2008
Megan, many realtors will not show houses that are sold by unrepresented sellers; regardless of that, if you could not sell with two big RE companies, try a smaller RE company. Why would you want to pay an agent to work against you? It is not in your best interests.
0 votes Thank Flag Link Tue May 20, 2008
Most will want 3%, my guess would be they wont stop the car. Too many homes to look at on the market right now. Hopefully you can sell it yourself.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Tue May 20, 2008
i dont see why not, as long as your paying a comission i cant see why they wouldnt show your home just state it in your advertising WILL WORK WITH BUYERS AGENT.
Web Reference: http://www.njproperty.info
0 votes Thank Flag Link Tue May 20, 2008
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