Perkasieseller

Thanks for all the answers but special thanks to Jodi for the specific information about my area.

Jodi - he wasn't willing to give up anything. I had the feeling that he just wanted to squeeze another .5% out of me (what's a few thousand dollars anyway?) His car and clothes were way too nice. Thank you for being straightforward enough to acknowledge that the guy was probably trying to take unfair advantage (I know you didn't say that, but if the info you provided is true then that's the case.)

I think some great general info here about commissions from everyone else, certainly I can see the use in different markets. For us lil' old farmers here in Bucks, I think I'll keep it at 3% or under (unless you sell my home Jodi - you get the 3.5% :) - Sun Sep 9 2007, 23:13

Thanks for the feedback.

Sylvia - I'm looking at LSB to save on the sellers broker fees. I'm happy to pay the buyers realtor a fair commission to bring buyers into my home and help me sell my house. The service buyers brokers offer is valuable and necessary. I need my buyers brokers and I want to treat them well. Realtors are my friends.

I think I'm missing your point about $ and % not being important - selling a home is a business transaction for hundreds of thousands of dollars. If you don't look at the bottom line dollars and cents you're throwing money away. Ha, It's what is so fascinating about this business to me, how casually $10K, 20K, 30K, and more in commissions are thrown around and dismissed to sellers as "shouldn't be important."

Anyway, back to the original question.

Are you saying that 3.5% commissions are very common in this area? What percentage of the listings around here do you see offering 3.5% to the buyers broker?

If it's not going to effect how my home will be shown, should I even go that high? Maybe 2.5% will be adequate. I can even list it as low as 1%. Would realtors still have no bias if I offered a 1% commission? It has to mean something!

Patrick - yes he brought comps. None had a 3.5% commission. Very few even had a 3% commission, most were less. That with what I know about the world left my Spidey Sense tingling :) - Sun Sep 9 2007, 00:28

Didn't expect this post to yield so much information - and so much more when you read between the lines! I'll put the "you can't do this - you're not a realtor!" responses aside for now.

I see alot of folks doing FSBO / LSB who... well, they're honestly clueless and obviously would be a nightmare to work with. It seems one of my challenges walking into this process might be to convince realtors that I'm different .. that I will work professionally and effectively with them to sell the home, that I will do my part, that the deal won't fall through because I'm clueless.

So ... the real question is - as I start this process, what can I do to ease this preconception? How do I get realtors onboard with me? If you're squirrelly about FSBOs, what things would change your mind?

Or does it really just come down to the right price, the right features, and shows well regardless of who listed it? - Sun Sep 9 2007, 22:42

Hi Sylvia,

I think it's a good point, that many people find it difficult to be objective and keep emotions out of the process, even realtors are human! Let's be careful not to generalize though - I think most experienced realtors would not have this problem, and many, many people have the skills to negotiate effectively even when they're selling their own home! - Sun Sep 9 2007, 00:39

Thanks for the feedback!

Certainly a buyers market right now! We are very well researched and realtistic about where the home will sell. Home would be marketed on the Internet, MLS, Realtor.com through the service. Of course, we would manage additional marketing campaigns. As I understand it, upwards of 85% of sales originate from the MLS/Realtor, other marketing targets the remaining 15%. We have a real estate lawyer (very reasonable rates) and negotiation is old hat - I am objective and quite honestly I'm on the same team as the buyers broker - I want to sell the home and create a great situation for both sides. As for details, I'm meticulous so I'll make sure the deal gets done. - Sat Sep 8 2007, 21:52

Hmmm, $20,000 less than the competition on an average priced home in this area doesn't matter? I want your buyers Ed! And you call me a joke...

That 3% commission can give buyers a nicer home for the $$ and many different ways. A home priced 3% lower than value certainly provides instant equity, which would make the deal alot more attractive to a lender. Or you can throw that 3% at closing costs and incentives. Or upgrades that will make the home more appealing and easier to sell. Or put the money in your pocket. When you don't pay that money to someone else, it's yours to decide how to spend it!

Yes, you need to have a handle on the market.
Yes, you need to be knowledgable, creative and effective.
And yes, Ed, normal everyday people can be effective at this without a magic realtor wand.

Price your house right, market it right, do your work, and it will sell.

The rest of what Ed says is smoke and mirrors. Ha, I've heard so many of these scare tactics already and I haven't even started. I can say this - if they indeed do scare you, then you don't have the stomach for FSBO. If you recognize that Ed is trying to create uncertainty and doubt, you might have a chance.

Again, don't underestimate the work that realtors do ... but don't overestimate it either! - Sat Sep 8 2007, 23:51

Looking at the FSBO game myself. I suggest at the very least paying a "flat fee" service to get listed on the MLS/Realtor.com - statistics show that around 85% of home sales originate from the MLS. For around $500 it's worth the investment.

The advantages - well, you can save typical up to 6% commission. This means you can put that money in your pocket ... or have other flexibility. I will be offering buyers brokers a "full" 3% commission and saving the 3% on the "sellers brokers side. Some of the money I save will need to be spent on additional marketing ... and time for brokers opens, open houses, etc. Will need to budget for a real estate attorney (not overly expensive but an expense nonetheless.) Don't think your house will just sell - you do need to do some legwork. I'm just betting that the time and $ I put in will be less than what the sellers commission would be. And, as a last resort, I can drop my home price up to that 3% in lieu of hiring an agent (which represents a "break-even") - and there is no more effective way to sell a home than drop the price!

Disadvantages are that you need to spend time to educate yourself on the process - ALOT of time. And you will need to manage the legal and negotiation issues - if you mess up here it can cost you well more than that 3% - 6% you saved. Honestly, the game isn't that complicated but you need some knowledge to succeed! Don't underestimate the work that realtors do ... but if you're smart about selling it yourself I think you can be very effective! - Sat Sep 8 2007, 22:16