As a realtor, it is my experience that fsbos are either really good (about 10%.... because their either retired or a stay at home parent with hours and hours time to research), or their absolutely aweful because they are going in with the assumption that all you do is place a sign in your yard and I will sell my home for the same price as someone who does it everyday........ case study after case study shows that a realtor will sell your house for 4-7% higher.......there is a marketing strategy..... how do I know when it's appropriate to price slightly under the market to create bidding wars, or when I should price it a little above market....... how do you know by talking to a lender the likely hood of a loan closing....how do I know if I am dealing with a competent lender... How do I know the rare scenario which makes a loan offer better than a cash offer.......what are little legal conversations you can have with the appraiser to make sure your home appraises... what do the 400 different gar forms mean in a contract......How do I make sure I am asking enough earnest money... how long should I list this before I drop the price before it goes stale and gets me a lowball offer.... what is my marketing strategy....what should I fix...what shouldn't I fix to get the home ready...... How do I secure a backup offer so when I get asked for repairs during the inspection period, I can negotiate hard...when is it necessary to contribute to closing cost...when should I not.....the list is endless......the 7000 you saved assumes that your home would have sold for the same thing as it would have if listed by a professional who does it everyday........I agree a fsbo saves money if they hire an average realtor ........ but with a good one they will make thousands, and do none of the work........... And there plenty of tools data out there to analyze which realtor is good at his craft..
Great video! This is very helpful info for saving on realtor commission(more profit). My wife and I are house flippers in Michigan and we are starting our own channel documenting our process!
We bought our summer home, when the sale was done the owner said he forget the rest of the keys. He said he would put them in the mail box the end of the day, I said sure no big deal. We went shopping for blowup beds and we were super excited.i went and bought locks as a backup if he didn’t drop them off.. guess what .. no keys so that night I changed the locks. We went back home came back the next week. Our neighbor told me who Changed the locks of the house? I said I did since I didn’t receive the keys.. she told me, oh cause the previous owners tried getting in to the house? I guess they wanted one last look?.. but that would be trust passing right ?They don’t own the house anymore.. moral of the story.. don’t trust anyone and always be ready.
Is the realtor going to clean your house? Stage your house? Give you an appraisal? Which is the buyers job. You ultimately have to negotiate the offer anyways. When I sold my house the realtors called me anyways because I was still living at the home. It’s easy to take photos or to hire someone and you can perform you own market analysis
Absolutely excellent! Thank you so much for being so organized and with such streamlined advice. I learned more in this one video thanks to your clarity than I have from dozens of others. You’ve given me hope that FSBO can be done.
Very excellent video, but I do have questions. How many hours (actual time spent on the phone, driving to appointments, researching comps, showing the house, responding-to/sending emails, etc. etc.) did you actually spend doing this as a FSBO?? Also, taking into account that a US work week is 40-hours (8 hours a day), how many hours per week away from your job (playing job hooky) did you actually use for the entire process? Even a single hour doing ANYTHING other than your paid day-job is stressful to hide from your employer (and you have to do this because realestate activities mostly all happen during business hours). So, if your total hours doing it FSBO-style takes a total of about 40 hours in actual effort, the commission savings is a big win, but If you're talking about 160 hours (1 month's worth of 9-5 work hours), and taking a big chance that something big is going to get screwed up, that's a different thing. I like your idea very much, and I don't want to use a real estate agent, but what if the mistake I might make is more expensive than the real-estate commission?? What were the real hours for your all-in actual effort?
In my opinion the most important part about selling by yourself or using an agent is would an agent be able to sell your property for more than their commission. Agents say they can do a better marketing job, are better negotiators, etc, I don't believe it, they hire a photographer, write a short description of your house, put it on MLS and put a lockbox on your door. They don't show the property to potential buyers they usually never meet the buyers. You can do a better marketing job than an agent.
plus if you're selling a high value place like a condo thats worth over 700k thats 42k pay out to the agent, in which i highly doubt listing it by yourself would have you spend over 42k.
@@aufwiedersehen483 hire an agent to list it on the MLS, that can be as low as $100. Get professional pictures. Hire a lawyer to make sure all the paperwork is done correctly, even at $250.00 an hour you'll still save a lot of money compared to an agent fee, and I trust my lawyer a lot more than any agent. And offer normal commission to the buyer's agent.
Sellers should NEVER allow agents to use a lock box. That’s a lazy agent. If you’re paying them up to 6%, they or their representative should be present for showings. What happens even someone comes into your home, uses the toilet and it overflows and makes a mess, or does damage? You should have representation present at all times your home is open to others.
when your house has a mortgage, how does selling work? can you sell yourself in that case? because you obviously need to sell it in order to pay off the mortgage...to sell it. If that makes sense. Thank you!
Bryce had answered a similar question earlier but was about taking money out for the buyers agent, according to him the title company will handle all the work for a fee of course, either you can hire one or the buyers agent will definatley have their own title company and they will also take out the buyer agent fees at closing which was ageed upon in the purchase ageement and I'm sure they will also be responsible for taking the money out to pay the mortgage company as well since they would be responsible if things didn't right, hope this helps.
House up the street did FSBO and got top dollar. It's a sellers market right now. If there is no inventory, they'll be lining up to show it. About 70% of the work described is cleaning up the house and making it pretty for the pictures and the showing. You have to do that with a realtor anyway.
16:41 Bryce, who's responsible for preparing purchase and sale agreement seller or buyer agent? Also you mentioned buyer will work with title company, that means it is not seller responsibility to hire title company? Appreciate your feedback
Wow, this is an awesome video. I learned more watching this video than reading a couple books I bought about FSBO. I now feel ready to sell my house on my own. Thanks!
Thank you so much for the advice! Quick question, you said the seller usually pays the fees for the realtor and a realtor will probably bypass a fsbo house because it won't make them any money. In your experience, did you make a verbal agreement with the buyer's realtor and if so, how do you decide what ia a fair compensation for the buyer's realtor? Thanks for reading
Hi David. Great question! Industry standard is 6%. That means that the owner of the home will pay 6% commission to the realtors -- 3% to your agent, and 3% to the agent who brings the buyer. If you decide to sell the home without a realtor, it's still good practice to pay the other realtor their 3% commission, otherwise they'll skip over your house and won't show it to their clients. You can typically advertise this by saying something along the lines of "BUYERS AGENT WELCOME" in your listing.
You can offer to pay the buyer's agent less than the 3%. I have sold multiple properties where I had my agent take a lower fee for selling e.g. 1.5-2% and offered the buyer's agent 2%. So he's not correct in telling everyone they have to offer the full 3% to the buyer's agent. If you go lower than 2% in a hot market, with lot's of inventory, then the buyer's agent are more likely to steer their clients to other properties that pay a higher commission than yours.
When you get to the signing of the "Purchase & Sales Agreement" and later do you suggest hiring a real estate attorney? Also, how do you make sure you include everything on the seller disclosure document? Thank you!
I sold a rental house to the renter. It was ridiculously simple. He had to do most of the leg work with his bank, an appraisal, etc. We picked a local attorney to handle the closing and it was done. Easiest process ever. Granted I had a buyer, but past that aspect of it, I can’t think it is as big of a deal as people make it out to be. If you know how to price it, you can list on the MLS with a service for a few hundred dollars. Advertise on Facebook also, and you will likely get a buyer. Past that, let the buyer deal with the bulk of the hassle.
Great video straight to the point 👏🏾 My question is in reference to my specific situation. I want to sell my home in a very popular area “as-is”. I know I need to get CMAs from multiple realtors but should I list to sell or just fold to the investors in the area since I dont want to update the kitchen and floors? House was built in 2005 and the roof has been replaced-average wear and tear
I personally would get an appraisal for your house first, then once you see how much your house is truly worth then you can decide if it’s best to sell to an investor or still hope to sell as is. Just what I would do- Hope that made sense!
Staging is a waste of time if your the only house in your area on sale!!! The 10 -12 Agents looking at your home will be the SAME AGENTS that REFUSE to show your home as a FSBO... WHY TRUST THE ENEMIES??? You already know what your home is worth and if it's anywhere close the market will adjust it automatically... Paying 6% DON'T!!!
It’s customary to use the sellers title company. But if the buyers really want to use theirs, that’s fine too. Title companies will try to convince you otherwise, but to me, they’re pretty much all the same.
If their agent will charge us 3%, and if we choose a realtor at 6%, and that includes their 3%, are we basically only paying our realtor 3%? Sorry if this is a dumb question, I’m wanting to get my house on the market asap, still deciding which route to take.
Do I seller set commission to buyers agent ? On cape agents want 3 percent each On my $500k house that’s 6 percent $30k!! Can I say no sellers agent commmission?can. I say buyer May involve an agent and pay them. To attract agents can I say seller will pay finders fee to buyers agent of $1000. Plus ?
Excellent explanation of the process. As a seller representing yourself dealing with the buyers agent, “Should I require the potential buyer making an intitial offer that I feel is respectful, a good faith deposit of say $1200 into my bank account to more or less confirm that it is, indeed, in good faith?……also……What should be a reasonable time frame to allow haggling over sale price?”…..and……”If we fail to reach an agreement, am I punished by this failure being recorded on the MLS?
The good faith deposit should be held by a non interested party to be fair. The negotiation of the price should be done within the week and you won’t be punished if you list your house for sale by owner it would’ve never went in the MLS.
Very helpful video! Thank you so much. Can I just ask you do you need a lawyer at any point to process the documents or does the title company pretty much walk you through it? Thanks again!
@@KZ3W You have a lawyer to check your seller's discloser documents to the buyers and to check your purchase agreements before you accept or counter them. (Before you sign anything).
Hi there, I have someone interested in buying my house because they bought the land behind my house. They will be paying me without financing with a bank but I still owe money on my house. How would that process work?
The fact that a buyer agent will shy their client away from a for sale by owner proves that they are unethical and not working for their client. They could easily have a clause in their client agreement that states some kind of compensation if they sell them for-sale-by-owner. That would be a totally separate agreement / contract between the agent and the client and totally doable if that agent was ethical.
Exactly, the fact that a realotor would steer a client away from a home that could potentially be what the client is looking for within their budget is deceitful and unscrupulous and definately not in the best interst of the client but the realotor instead, why I don't trust realotors.
Do you recommend paying a flat fee listing website to be listed on the mls or do you find enough buyers just by listing yourself on zillow, realtor.com and trulia?
In my experience, paying the $400 to get listed on the MLS is WELL worth it. It really just gives you the exposure you wouldn't have otherwise. "FSBO" listings are typically known to be uneducated people, and come off as "cheap". By listing on the MLS, you can help avoid a lot of that.
what if the buyer realeator is asking you to pay $5,000 to help buyer with closing costs? It brought my home down by 2K plus is asking for $5,000 for the buyer's closing cost. To me looks like they are trying to get another realitor fee since you dont have one, they make you pay it helping their client. So he would get $7,500 and her client $7,000. I could then sell with an agent from the beginn with. Is this normal and common for buyer's realtor to ask for that?
That's a great question what are the obligations of the costing cost to the seller do you have agree or what's fair? I hope someone answers and gives their take or opinion on this. What's the purpose of FSBO if you still spend money on closing cost.
In case someone is looking for this - you don't need to accept an offer a buyer gives. In a situation where there hasn't been an offer, the buyer may know they have a bit more negotiation power and ask for the concession (in this case their side of the closing costs). This is more common in a buyer's market, but for a listing that isn't getting much traction, an interested buyer may ask for the concessions even in a seller's market.
Question: Did you raise your asking price to cover the cost of a buyer's agent? If so by what amount? Whats the rate most buyer's agents would be expecting? 2 - 3% Oh, really helpful video by the way; and not too long and not too much "fat"; thanks!
@@AedenKlawBIanco rules are different by the state. Bottom line is if you are selling your own home you are in charge of the rules. You can write the contract anyway you want. Even if there is some kind of state law that I am not aware of ( and I'm not talking about a realtor's made-up law on some preformatted contract downloaded from a Realty website) then you right into the contract that the purchaser has to reimburse you for it. A legal contract is a legal contract. If you both sign and agree to the purchaser standing on one leg and singing the national anthem then it is a binding part of the legal contract. The Realty Association pays a lot of money to try to complicate things.
@@steveh7108 THIS IS THE PROBLEM PEOPLE HAVE NO CLUE ABOUT!!!!! Yes, it's YOURS, YOU control the rules and terms. There's nothing else about it. We used to close with jokes on our agreements "Buyer is required to bring Flaming hot cheetos at title office on the signing day." We show up and there's like 4 bags of ht cheetos HAHAHAHA. The moral is whatever YOUR terms are, it's to be followed. Stop letting agents, lenders and these over-glorified secretaries control your mind. There's nothing illegal and they have no legal bounds to anything but to make money and steal damn near 10% of your money in the end.
@@REVerbtalk I agree. Unfortunately it's not just the Realty industry anymore. People have been so dummy down they don't even know they have rights or Freedom anymore. Example: I don't know how many gas station cashier's I've talked to that claim they get any drive-offs deducted from their paycheck. Apparently they're too dumb to know that your employer cannot legally do that. Some of them are dumb enough to actually sign a release prior to hiring in that allows them to do that. Another example is how many people think that is sign or a policy is equivalent to law. Just because someone has a sign up that says not responsible for xyz. It does not make it true. People need to get their heads out of their rear ends and realize just because someone printed it on paper, it doesn't make it true. Or just because someone has some Cracker Jack box degree or license, It doesn't make them knowledgeable or correct. When it comes to the real estate business, there is thousands of dollars at stake that people can lose in the blink of an eye or the signing of a signature. People would be wise to wake up before they sign.
The only issue I have with this is using a realtor for a CMA when you have no intention of using them. From what I understand they are only paid when they are hired so maybe pay them something instead of scamming them into hoping they'll get your business. Just sayin'
😎 I appreciate all of the useful information you have provided. This video has shown to be an extremely helpful instrument. As much as it helped us, I hope it's beneficial to many others.
When it is stated that the majority of buyers do not have an agent, why would I deal with an agent? IF the Buyer chose to use an agent, that was their choice. I am not going to pay that agent a penny. Their deal is with the Buyer, not me. If the agent and buyer have a separate deal, that is between them. Plenty of Buyers are available and I am not obligated to pay for someone else's agent in a FSBO.
Bryce, thank you for sharing your experience to us, it is very help full information for home owner who want to save some money on comission which is so much money to spend, even halve of it already help us save some money, love your video from California subsciber.
Would you ever talk with a realtor about doing your MLS listing? Maybe they would do it for a few hundred bucks, and think that if it doesn't work out then you can "hire" them to sell it. Also did you neg the buyer's agent's commission? I heard that a lot of times you can offer between 2-2.5%. Would it be a good idea to put in the listing "Buyers agent welcome, 2.5% commission?
Did you put it on the MLS? If not, why not? You listed a bunch of sites that you put it on and I wouldn't know how to get it on any of those. If it goes on the MLS does it automatically wind up on all of those as well?
Great information. Thank you. I have questions. When you talk about inspections/appraisals, who handles that? Is it the buyers responsibility? And the Title company, who handles that if the person buying from you doesn't have a realtor either? And the closing...if both a parties are not represented by a realtor?
Terry Sparks Easy. You do with the buyer. Go down to the title company and get a FSBO packet. You guys both decide, then both sign. Title company does the rest.
According toi Bryce 3% is the standard and he reccomends not to go any lower because then the buyer's agents will steer their clients away from your home, it sucks but that's the game.
This is awesome man! I’ve never bought or sold a house but I’ve always wondered if realtors really “earn” the money that they get. I don’t know if I’d personally feel comfortable doing it all myself but I will say that with some of the new technology and apps out there aimed at replacing realtors... I think it’s definitely a profession and industry that could be turned completely upside down
Realtors should have disappeared with the buggy Whip and the typewriter as soon as the evolution of the internet came about. Why does anyone think it should be any more different than selling a car or anything else. Keep the agreement/ contract simple clear and to the point and get it notarized. Realtors in banks are simply thieves that overcomplicated in order to pad their own pockets.
I see a realtor as a middle person to keep me from stressing! So far currently..I try to use a relative that is an agent… she bends to hard for everyone else. Seems it doesn’t matter if I am selling or buying so I am stressed all of the time. I hate to say it but doing all of the labor paperwork and renovations finding missing documents… trying to sell faster is not really my fault and keeps falling on me. It is also a recent laziness generation problem. Hard to get process paperwork done… there is a lot to do so hiring professionals to alleviate my stress… is not currently working out. This video needs a check list of all needing to be done. So use to just doing it all myself. Sickening to pay people that can’t even call you and only want to text and focus on working maybe 4 days or less to earn their pay. Frustrated. Sorry folks but we need this information and just walk it all through ourselves. The service is at a realtors convenience sometimes and I have had inspectors tell me they waited for me for two weeks. But the realtor said they couldn’t do my house so I had to wait.
So if you're doing the sale to a family member and there's no inspections or agents involved do you just go straight to the title company? The seller still has a mortgage on the house and is much less than the agreed sale price, there's no liens on the property other than the mortgage. The buyer has a down payment of over 30% so there's no issue with financing or mortgage insurance. Thanks for any advice
Yup, exactly. As long as the buyer has financing, you'll both go to the title company, sign the paperwork, and then you can do the transaction without any realtors to save both sides some money.
According to Bryce you can get the documents from the title company and he says you do not need an attorney for closing. Me personally would hire an attorney just to check everything.
Thanks for the video. Great content! I have my first FSBO almost ready for market and the home is empty. Do you think it is worth the cost to stage it? Any input is appreciated
Hi Tracy, in my home sale, we spent about $10k on furniture with the idea that we would at least keep half of it for our new home and felt like it was worth it. What would've felt like a big empty box, the house with staging really helped people imaging themselves living there and feel the flow of the home. We were able to get an offer $35k over asking and felt like without staging, and we felt like it was largely due to the buyers being able to envision themselves in it.
Bingo that's the perfect scenario! Bryce had answerd the same exact question and said then you both go to the title company and they will take care of everything and you don't even need an attoney eventhough I may want to hire a real estate attorney just to make sure everthing goes according to the standard legal procedures and to look over everything.
An important step was missed. A Seller Disclosure statement documenting anything A buyer should be aware of. Eg. How old are windows, was wood replaced under shingles, is there any water pressure issues or water that accumulates outside...walkway. If you don't disclose structural deficiencies you Could get Sued!
At the end of the day, stats have proven that you’ll make more money listing with a realtor than you’d make selling yourself. I really don’t understand why the same people will go to a doctor if they break a bone, but won’t use a realtor to buy/sell their biggest financial asset. I specialize in working with FSBOs. Common problems: - priced incorrectly - not marketed correctly - not staged correctly - photos look bad - willing to pay a buyers agent (the person who’s job is to get their client a house for the least amount of money as possible) - legality issues (you can hire an attorney to fix this) - negotiating skills (it’s not just price. Repairs, appraisal, warranty, who pays for what, etc) - unqualified buyers wasting your time - security issues - showing issues I can literally keep going. Interview at least 3 agents. Don’t hire a friend or family member just because of your relationship. Choose the best agent that you think is best to get the job done. Save yourself the hassle and again, stats show that you’ll make more money working with a realtor than if you sold yourself to save 3% on commission
When you call around for CMA’s what should I expect? Do you think they will have to visit your property. I’m interested in selling and would like a little more detail in this, thank you and nice video!
Don't ask realtors to work for free. Unless you're ok with taking advantage of a single mom or dad who hasn't been paid for 3 months. Reaching out to them without planning to work with them is wrong. You can learn how to do a cma yourself.
The "money" that the bank is loaning lol. Banks don't loan money unfortunately but it would be nice if they did because then maybe our economy wouldn't be as terrible as it is.
We asked for realtors to send a picture of their business card. In return we gave showing instructions. We also bought a ring camera and security camera so we could always see who was visiting the property.
I am selling my house FSBO, if the tenant or friend want to buy my house and agree to the price, mean I have the buyer already, what I should do to prosses and take care the closing, do I ho yo Escrow company and pay them for the work done is this a right thing to do?
I tried to buy a "for sale by owner" house. I agreed to pay their real estate fees for my realtor. They were a pain. The house failed some really major inspection stuff, they refused to fix critical stuff. We walked away. They'll need to disclose it now to future buyers. They made a ton of mistakes. Been on the market a year in a hot market.
I need to sell my home as is,i just cant afford the upkeep,it needs insulation i have a room that has 3 heater vents and it doesnt put out heat! kitchen needs work house needs paint yard is filled with weeds. floors need work. Im in over my head
There was a time when buyers didn't need to sign a contract with the buying agent. In those days agents had to work for their commission. Today once agents get you to sign the line, they automatically get the listing commission, don't have to do anything...free money. The buyers agent does the same, once you sign, so now as a buyer your on their schedule, not yours and you basically get told here's all the listings in your price range, get back to me when you see something you like. Usually you see a buyer in one car, the agent in another, they no longer taxi people around, only to buy from their best friend after the agent does all the leg work. Your screwed either way, not much incentive for the agent accept to cash the commission check once the broker receives it.
![Before & After Pictures of a Home After It Was Staged [How to Stage Your Home]](http://i.ytimg.com/vi/G9yJmsaza_c/mqdefault.jpg)
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As a realtor, it is my experience that fsbos are either really good (about 10%.... because their either retired or a stay at home parent with hours and hours time to research), or their absolutely aweful because they are going in with the assumption that all you do is place a sign in your yard and I will sell my home for the same price as someone who does it everyday........ case study after case study shows that a realtor will sell your house for 4-7% higher.......there is a marketing strategy..... how do I know when it's appropriate to price slightly under the market to create bidding wars, or when I should price it a little above market....... how do you know by talking to a lender the likely hood of a loan closing....how do I know if I am dealing with a competent lender... How do I know the rare scenario which makes a loan offer better than a cash offer.......what are little legal conversations you can have with the appraiser to make sure your home appraises... what do the 400 different gar forms mean in a contract......How do I make sure I am asking enough earnest money... how long should I list this before I drop the price before it goes stale and gets me a lowball offer.... what is my marketing strategy....what should I fix...what shouldn't I fix to get the home ready...... How do I secure a backup offer so when I get asked for repairs during the inspection period, I can negotiate hard...when is it necessary to contribute to closing cost...when should I not.....the list is endless......the 7000 you saved assumes that your home would have sold for the same thing as it would have if listed by a professional who does it everyday........I agree a fsbo saves money if they hire an average realtor ........ but with a good one they will make thousands, and do none of the work........... And there plenty of tools data out there to analyze which realtor is good at his craft..
Finally a instructional video, not done by a bias realtor
This dude is awful
Great video! This is very helpful info for saving on realtor commission(more profit). My wife and I are house flippers in Michigan and we are starting our own channel documenting our process!
We bought our summer home, when the sale was done the owner said he forget the rest of the keys. He said he would put them in the mail box the end of the day, I said sure no big deal. We went shopping for blowup beds and we were super excited.i went and bought locks as a backup if he didn’t drop them off.. guess what .. no keys so that night I changed the locks. We went back home came back the next week. Our neighbor told me who Changed the locks of the house? I said I did since I didn’t receive the keys.. she told me, oh cause the previous owners tried getting in to the house? I guess they wanted one last look?.. but that would be trust passing right ?They don’t own the house anymore.. moral of the story.. don’t trust anyone and always be ready.
They wanted to squat!
Is the realtor going to clean your house? Stage your house? Give you an appraisal? Which is the buyers job. You ultimately have to negotiate the offer anyways. When I sold my house the realtors called me anyways because I was still living at the home. It’s easy to take photos or to hire someone and you can perform you own market analysis
Great info. Do you recommend hiring an attorney to review the sales contract, etc.?
Absolutely excellent! Thank you so much for being so organized and with such streamlined advice. I learned more in this one video thanks to your clarity than I have from dozens of others. You’ve given me hope that FSBO can be done.
Glad to hear it!
Very excellent video, but I do have questions. How many hours (actual time spent on the phone, driving to appointments, researching comps, showing the house, responding-to/sending emails, etc. etc.) did you actually spend doing this as a FSBO??
Also, taking into account that a US work week is 40-hours (8 hours a day), how many hours per week away from your job (playing job hooky) did you actually use for the entire process? Even a single hour doing ANYTHING other than your paid day-job is stressful to hide from your employer (and you have to do this because realestate activities mostly all happen during business hours).
So, if your total hours doing it FSBO-style takes a total of about 40 hours in actual effort, the commission savings is a big win, but If you're talking about 160 hours (1 month's worth of 9-5 work hours), and taking a big chance that something big is going to get screwed up, that's a different thing.
I like your idea very much, and I don't want to use a real estate agent, but what if the mistake I might make is more expensive than the real-estate commission??
What were the real hours for your all-in actual effort?
My realtor want half my year’s salary.
In my opinion the most important part about selling by yourself or using an agent is would an agent be able to sell your property for more than their commission.
Agents say they can do a better marketing job, are better negotiators, etc,
I don't believe it, they hire a photographer, write a short description of your house, put it on MLS and put a lockbox on your door.
They don't show the property to potential buyers they usually never meet the buyers.
You can do a better marketing job than an agent.
plus if you're selling a high value place like a condo thats worth over 700k thats 42k pay out to the agent, in which i highly doubt listing it by yourself would have you spend over 42k.
@@aufwiedersehen483 hire an agent to list it on the MLS, that can be as low as $100. Get professional pictures.
Hire a lawyer to make sure all the paperwork is done correctly, even at $250.00 an hour you'll still save a lot of money compared to an agent fee, and I trust my lawyer a lot more than any agent.
And offer normal commission to the buyer's agent.
Sellers should NEVER allow agents to use a lock box. That’s a lazy agent. If you’re paying them up to 6%, they or their representative should be present for showings. What happens even someone comes into your home, uses the toilet and it overflows and makes a mess, or does damage? You should have representation present at all times your home is open to others.
@@naturadventur7425yes! That’s the way to do it.
when your house has a mortgage, how does selling work? can you sell yourself in that case? because you obviously need to sell it in order to pay off the mortgage...to sell it. If that makes sense. Thank you!
Bryce had answered a similar question earlier but was about taking money out for the buyers agent, according to him the title company will handle all the work for a fee of course, either you can hire one or the buyers agent will definatley have their own title company and they will also take out the buyer agent fees at closing which was ageed upon in the purchase ageement and I'm sure they will also be responsible for taking the money out to pay the mortgage company as well since they would be responsible if things didn't right, hope this helps.
House up the street did FSBO and got top dollar. It's a sellers market right now. If there is no inventory, they'll be lining up to show it.
About 70% of the work described is cleaning up the house and making it pretty for the pictures and the showing. You have to do that with a realtor anyway.
Just get an attorney and do the rest yourself keep the commission don’t give it away for nothing.
Hi, What is the standard fee for the title company? seems like they do most of the paper work?
Thank you! So helpful and empowering. :)
16:41 Bryce, who's responsible for preparing purchase and sale agreement seller or buyer agent? Also you mentioned buyer will work with title company, that means it is not seller responsibility to hire title company? Appreciate your feedback
Wow, this is an awesome video. I learned more watching this video than reading a couple books I bought about FSBO. I now feel ready to sell my house on my own. Thanks!
Thank you so much for the advice! Quick question, you said the seller usually pays the fees for the realtor and a realtor will probably bypass a fsbo house because it won't make them any money. In your experience, did you make a verbal agreement with the buyer's realtor and if so, how do you decide what ia a fair compensation for the buyer's realtor? Thanks for reading
Hi David. Great question! Industry standard is 6%. That means that the owner of the home will pay 6% commission to the realtors -- 3% to your agent, and 3% to the agent who brings the buyer. If you decide to sell the home without a realtor, it's still good practice to pay the other realtor their 3% commission, otherwise they'll skip over your house and won't show it to their clients. You can typically advertise this by saying something along the lines of "BUYERS AGENT WELCOME" in your listing.
You can offer to pay the buyer's agent less than the 3%. I have sold multiple properties where I had my agent take a lower fee for selling e.g. 1.5-2% and offered the buyer's agent 2%. So he's not correct in telling everyone they have to offer the full 3% to the buyer's agent. If you go lower than 2% in a hot market, with lot's of inventory, then the buyer's agent are more likely to steer their clients to other properties that pay a higher commission than yours.
When you get to the signing of the "Purchase & Sales Agreement" and later do you suggest hiring a real estate attorney? Also, how do you make sure you include everything on the seller disclosure document? Thank you!
Call a local Title agency i did and they said they can even review the contract with me before signing if i close with them
I sold a rental house to the renter. It was ridiculously simple. He had to do most of the leg work with his bank, an appraisal, etc. We picked a local attorney to handle the closing and it was done. Easiest process ever. Granted I had a buyer, but past that aspect of it, I can’t think it is as big of a deal as people make it out to be. If you know how to price it, you can list on the MLS with a service for a few hundred dollars. Advertise on Facebook also, and you will likely get a buyer. Past that, let the buyer deal with the bulk of the hassle.
I sold 3 rental houses. You can't compare that to selling your home.
My realtor wants 5.5% which is about $32,000!
32,000 is crazy expensive, if your interested I’ve been looking to purchase recently do you have Facebook or instagram?
In today's market, if a buyer has a realtor, increase the price 3 percent or tell them to keep looking.
Great video straight to the point 👏🏾
My question is in reference to my specific situation. I want to sell my home in a very popular area “as-is”. I know I need to get CMAs from multiple realtors but should I list to sell or just fold to the investors in the area since I dont want to update the kitchen and floors?
House was built in 2005 and the roof has been replaced-average wear and tear
I personally would get an appraisal for your house first, then once you see how much your house is truly worth then you can decide if it’s best to sell to an investor or still hope to sell as is. Just what I would do- Hope that made sense!
Very helpful. Thank you.
Staging is a waste of time if your the only house in your area on sale!!! The 10 -12 Agents looking at your home will be the SAME AGENTS that REFUSE to show your home as a FSBO... WHY TRUST THE ENEMIES??? You already know what your home is worth and if it's anywhere close the market will adjust it automatically... Paying 6% DON'T!!!
Staging isn’t a waste of time. It’s like selling car. If you’re asking for top dollar, you better make sure it’s clean inside and out.
Hey man, did you go through the buyers title company or did you find your own title company?
It’s customary to use the sellers title company. But if the buyers really want to use theirs, that’s fine too. Title companies will try to convince you otherwise, but to me, they’re pretty much all the same.
How would this video change with the NAR lawsuit and the un-coupling of listing/buyer agency. WOuld you as a FSBO offer to pay the buyers agent?
If their agent will charge us 3%, and if we choose a realtor at 6%, and that includes their 3%, are we basically only paying our realtor 3%? Sorry if this is a dumb question, I’m wanting to get my house on the market asap, still deciding which route to take.
Do I seller set commission to buyers agent ?
On cape agents want 3 percent each On my $500k house that’s 6 percent $30k!!
Can I say no sellers agent commmission?can. I say buyer May involve an agent and pay them. To attract agents can I say seller will pay finders fee to buyers agent of $1000. Plus ?
Excellent explanation of the process. As a seller representing yourself dealing with the buyers agent, “Should I require the potential buyer making an intitial offer that I feel is respectful, a good faith deposit of say $1200 into my bank account to more or less confirm that it is, indeed, in good faith?……also……What should be a reasonable time frame to allow haggling over sale price?”…..and……”If we fail to reach an agreement, am I punished by this failure being recorded on the MLS?
The good faith deposit should be held by a non interested party to be fair. The negotiation of the price should be done within the week and you won’t be punished if you list your house for sale by owner it would’ve never went in the MLS.
Very helpful video! Thank you so much. Can I just ask you do you need a lawyer at any point to process the documents or does the title company pretty much walk you through it? Thanks again!
Was wondering the same thing .
Any info appreciated .
@@KZ3W You have a lawyer to check your seller's discloser documents to the buyers and to check your purchase agreements before you accept or counter them. (Before you sign anything).
Would you recommend bringing an appraiser to see the value of your home. Or would you just average out the cma?
Appraisers cost money. CMAs are free. Don’t pay for an appraisal, as the buyer’s bank will take care of the appraisal during the loan process.
@@BryceMatheson thank you
Hi there, I have someone interested in buying my house because they bought the land behind my house. They will be paying me without financing with a bank but I still owe money on my house. How would that process work?
The fact that a buyer agent will shy their client away from a for sale by owner proves that they are unethical and not working for their client.
They could easily have a clause in their client agreement that states some kind of compensation if they sell them for-sale-by-owner.
That would be a totally separate agreement / contract between the agent and the client and totally doable if that agent was ethical.
Exactly, the fact that a realotor would steer a client away from a home that could potentially be what the client is looking for within their budget is deceitful and unscrupulous and definately not in the best interst of the client but the realotor instead, why I don't trust realotors.
@@John-bd1wf Looking back on these comments from a yer, 2 years back!!! NOW we understand EXACTLY why we have the NAR Settlement!!!
I tried to watch. Couldn't make it pass the first two minutes of you showing us your slippers.
SO, how do I get my house listed in MLS system, either zillow, realtor, trulia etc.
Do you recommend paying a flat fee listing website to be listed on the mls or do you find enough buyers just by listing yourself on zillow, realtor.com and trulia?
In my experience, paying the $400 to get listed on the MLS is WELL worth it. It really just gives you the exposure you wouldn't have otherwise. "FSBO" listings are typically known to be uneducated people, and come off as "cheap". By listing on the MLS, you can help avoid a lot of that.
@@BryceMatheson great thank you! Do you know of any flat fee websites that give you a home comparable analysis?
Did that workout for you?
@@BryceMatheson did that workout for you?
Very impressed. Subscribed.
what if the buyer realeator is asking you to pay $5,000 to help buyer with closing costs? It brought my home down by 2K plus is asking for $5,000 for the buyer's closing cost. To me looks like they are trying to get another realitor fee since you dont have one, they make you pay it helping their client. So he would get $7,500 and her client $7,000. I could then sell with an agent from the beginn with.
Is this normal and common for buyer's realtor to ask for that?
That's a great question what are the obligations of the costing cost to the seller do you have agree or what's fair? I hope someone answers and gives their take or opinion on this. What's the purpose of FSBO if you still spend money on closing cost.
In case someone is looking for this - you don't need to accept an offer a buyer gives. In a situation where there hasn't been an offer, the buyer may know they have a bit more negotiation power and ask for the concession (in this case their side of the closing costs). This is more common in a buyer's market, but for a listing that isn't getting much traction, an interested buyer may ask for the concessions even in a seller's market.
Question: Did you raise your asking price to cover the cost of a buyer's agent? If so by what amount? Whats the rate most buyer's agents would be expecting? 2 - 3% Oh, really helpful video by the way; and not too long and not too much "fat"; thanks!
Why would someone selling their house themselves pay selling agent?
If it's not in the contract it's not a part of the agreement.
@@steveh7108 buy agent 3% sell agent 3%
6% scam but you cant avoid buyer agent 3% too easily when youre the seller. so price ask up 3% to compensate
@@AedenKlawBIanco rules are different by the state.
Bottom line is if you are selling your own home you are in charge of the rules. You can write the contract anyway you want.
Even if there is some kind of state law that I am not aware of ( and I'm not talking about a realtor's made-up law on some preformatted contract downloaded from a Realty website) then you right into the contract that the purchaser has to reimburse you for it.
A legal contract is a legal contract. If you both sign and agree to the purchaser standing on one leg and singing the national anthem then it is a binding part of the legal contract.
The Realty Association pays a lot of money to try to complicate things.
@@steveh7108 THIS IS THE PROBLEM PEOPLE HAVE NO CLUE ABOUT!!!!! Yes, it's YOURS, YOU control the rules and terms. There's nothing else about it. We used to close with jokes on our agreements "Buyer is required to bring Flaming hot cheetos at title office on the signing day." We show up and there's like 4 bags of ht cheetos HAHAHAHA. The moral is whatever YOUR terms are, it's to be followed. Stop letting agents, lenders and these over-glorified secretaries control your mind. There's nothing illegal and they have no legal bounds to anything but to make money and steal damn near 10% of your money in the end.
@@REVerbtalk I agree. Unfortunately it's not just the Realty industry anymore. People have been so dummy down they don't even know they have rights or Freedom anymore.
Example: I don't know how many gas station cashier's I've talked to that claim they get any drive-offs deducted from their paycheck.
Apparently they're too dumb to know that your employer cannot legally do that.
Some of them are dumb enough to actually sign a release prior to hiring in that allows them to do that.
Another example is how many people think that is sign or a policy is equivalent to law.
Just because someone has a sign up that says not responsible for xyz. It does not make it true.
People need to get their heads out of their rear ends and realize just because someone printed it on paper, it doesn't make it true.
Or just because someone has some Cracker Jack box degree or license, It doesn't make them knowledgeable or correct.
When it comes to the real estate business, there is thousands of dollars at stake that people can lose in the blink of an eye or the signing of a signature. People would be wise to wake up before they sign.
The only issue I have with this is using a realtor for a CMA when you have no intention of using them. From what I understand they are only paid when they are hired so maybe pay them something instead of scamming them into hoping they'll get your business. Just sayin'
Wow !!! I thank the Lord for you 🎉
😎 I appreciate all of the useful information you have provided. This video has shown to be an extremely helpful instrument. As much as it helped us, I hope it's beneficial to many others.
When it is stated that the majority of buyers do not have an agent, why would I deal with an agent? IF the Buyer chose to use an agent, that was their choice. I am not going to pay that agent a penny. Their deal is with the Buyer, not me. If the agent and buyer have a separate deal, that is between them. Plenty of Buyers are available and I am not obligated to pay for someone else's agent in a FSBO.
My neighbor wants to buy my house. Anything in particular I should be aware of or steps I can skip. Thanks Donna
Bryce, thank you for sharing your experience to us, it is very help full information for home owner who want to save some money on comission which is so much money to spend, even halve of it already help us save some money, love your video from California subsciber.
Would you ever talk with a realtor about doing your MLS listing? Maybe they would do it for a few hundred bucks, and think that if it doesn't work out then you can "hire" them to sell it. Also did you neg the buyer's agent's commission? I heard that a lot of times you can offer between 2-2.5%. Would it be a good idea to put in the listing "Buyers agent welcome, 2.5% commission?
There are realtors out there who will list for you for a few hundred dollars, but many times they'll feel jipped and that they're worth more.
Did you put it on the MLS? If not, why not? You listed a bunch of sites that you put it on and I wouldn't know how to get it on any of those. If it goes on the MLS does it automatically wind up on all of those as well?
Excellent presentation. Thank you!
The neighbors house is listed with a realtor. Should I wait till that is sold?
Excellent!!! Very helpful!!! Thank you!!!
Great information. Thank you. I have questions. When you talk about inspections/appraisals, who handles that? Is it the buyers responsibility? And the Title company, who handles that if the person buying from you doesn't have a realtor either? And the closing...if both a parties are not represented by a realtor?
You figured it out yet?
Question is. Who comes up with the purchase agreement if no realtor for either party?
Terry Sparks Easy. You do with the buyer. Go down to the title company and get a FSBO packet. You guys both decide, then both sign. Title company does the rest.
so if you used the buyers agent how much did you agree to pay in commission? Just their 2%?
Its not 2% where I am
According toi Bryce 3% is the standard and he reccomends not to go any lower because then the buyer's agents will steer their clients away from your home, it sucks but that's the game.
Thank you man! I needed these details!!
Bryce, thank you for your video. How do you handle the disclosure process?
That’s all included with the FSBO documentation you get from the title company.
This is awesome man! I’ve never bought or sold a house but I’ve always wondered if realtors really “earn” the money that they get. I don’t know if I’d personally feel comfortable doing it all myself but I will say that with some of the new technology and apps out there aimed at replacing realtors... I think it’s definitely a profession and industry that could be turned completely upside down
what apps??
Realtors should have disappeared with the buggy Whip and the typewriter as soon as the evolution of the internet came about.
Why does anyone think it should be any more different than selling a car or anything else.
Keep the agreement/ contract simple clear and to the point and get it notarized.
Realtors in banks are simply thieves that overcomplicated in order to pad their own pockets.
Do you have to pay fees to the buyers realtor and your own realtor ?
I see a realtor as a middle person to keep me from stressing! So far currently..I try to use a relative that is an agent… she bends to hard for everyone else. Seems it doesn’t matter if I am selling or buying so I am stressed all of the time. I hate to say it but doing all of the labor paperwork and renovations finding missing documents… trying to sell faster is not really my fault and keeps falling on me. It is also a recent laziness generation problem. Hard to get process paperwork done… there is a lot to do so hiring professionals to alleviate my stress… is not currently working out. This video needs a check list of all needing to be done. So use to just doing it all myself. Sickening to pay people that can’t even call you and only want to text and focus on working maybe 4 days or less to earn their pay. Frustrated. Sorry folks but we need this information and just walk it all through ourselves. The service is at a realtors convenience sometimes and I have had inspectors tell me they waited for me for two weeks. But the realtor said they couldn’t do my house so I had to wait.
Get a different realtor. Not all Realtors act like that. Sounds like they weren't doing their job.
Did you get the property sold?
This is exactly what I needed, thanks very much!
I thought you were showing how to sell without a realtor?
So if you're doing the sale to a family member and there's no inspections or agents involved do you just go straight to the title company? The seller still has a mortgage on the house and is much less than the agreed sale price, there's no liens on the property other than the mortgage. The buyer has a down payment of over 30% so there's no issue with financing or mortgage insurance. Thanks for any advice
Yup, exactly. As long as the buyer has financing, you'll both go to the title company, sign the paperwork, and then you can do the transaction without any realtors to save both sides some money.
And the binder? I didn’t hear anything about that
Can you negotiate the buyers agent fee to less then 3%?
@@BryceMatheson Awesome, thanks for the reply.
Pretty good video i will try to FSBO my house
So do I have to pay buyers agent?
Very good, and I mean REALLY well done.
Well done! You have explained the process much clearer than another video I had watched. Thank you!
Excellent!
Where do you get purchase agreement.? Why not use an attorney for closing?
According to Bryce you can get the documents from the title company and he says you do not need an attorney for closing. Me personally would hire an attorney just to check everything.
Geez…what a start in this video…wow
We are looking to sell our home our selves. Our recommendation are very clear and straight forward. Thank you!!!
Great advice on having a friend come in & critique the home! 😀👍
Aren't there forms and documents we need to obtain? Where do we get them??
Title Company for free
Thanks for the video. Great content! I have my first FSBO almost ready for market and the home is empty. Do you think it is worth the cost to stage it? Any input is appreciated
I would have said "no". but how did it go?
Hi Tracy, in my home sale, we spent about $10k on furniture with the idea that we would at least keep half of it for our new home and felt like it was worth it. What would've felt like a big empty box, the house with staging really helped people imaging themselves living there and feel the flow of the home. We were able to get an offer $35k over asking and felt like without staging, and we felt like it was largely due to the buyers being able to envision themselves in it.
But what about if the buyers also aren’t using a realtor???
Bingo that's the perfect scenario! Bryce had answerd the same exact question and said then you both go to the title company and they will take care of everything and you don't even need an attoney eventhough I may want to hire a real estate attorney just to make sure everthing goes according to the standard legal procedures and to look over everything.
How does the buyer’s realtor get paid in this process??
The title company will pay them out their commission at closing.
An important step was missed. A Seller Disclosure statement documenting anything A buyer should be aware of. Eg. How old are windows, was wood replaced under shingles, is there any water pressure issues or water that accumulates outside...walkway.
If you don't disclose structural deficiencies you Could get Sued!
your a legend chief:) thank you
So paying the buyers agents out of our commission is necessary?
Not at all necessary. But it can help speed up the sale.
At the end of the day, stats have proven that you’ll make more money listing with a realtor than you’d make selling yourself.
I really don’t understand why the same people will go to a doctor if they break a bone, but won’t use a realtor to buy/sell their biggest financial asset.
I specialize in working with FSBOs. Common problems:
- priced incorrectly
- not marketed correctly
- not staged correctly
- photos look bad
- willing to pay a buyers agent (the person who’s job is to get their client a house for the least amount of money as possible)
- legality issues (you can hire an attorney to fix this)
- negotiating skills (it’s not just price. Repairs, appraisal, warranty, who pays for what, etc)
- unqualified buyers wasting your time
- security issues
- showing issues
I can literally keep going. Interview at least 3 agents. Don’t hire a friend or family member just because of your relationship. Choose the best agent that you think is best to get the job done.
Save yourself the hassle and again, stats show that you’ll make more money working with a realtor than if you sold yourself to save 3% on commission
Thank you!! this was great!!!! 👍
LJ Tirado Glad you found it so useful!
This was a fantastic video thank you so much!!!! I’ll be listing my own house and making a video walkthrough to go on the listing page!
When you call around for CMA’s what should I expect? Do you think they will have to visit your property. I’m interested in selling and would like a little more detail in this, thank you and nice video!
Massively helpful, thanks!
Where would you recommend a first time FSBO obtain the required contract forms? Thanks!
Todd Shumaker Any title company. They’re free.
Don't ask realtors to work for free. Unless you're ok with taking advantage of a single mom or dad who hasn't been paid for 3 months. Reaching out to them without planning to work with them is wrong. You can learn how to do a cma yourself.
So you bascially used the buyer's agent. How was their commission paid?
The "money" that the bank is loaning lol. Banks don't loan money unfortunately but it would be nice if they did because then maybe our economy wouldn't be as terrible as it is.
Who did you use for photography? Thank you
I just hired someone local. Google real estate photographers.
where does all the paperwork come.from?
Title company has basic paperwork you can use. Or if the buyer is using an agent, they can provide it.
Great video thanks!
Question how do you authenticate a perspective buyers realtor before giving access to home?
We asked for realtors to send a picture of their business card. In return we gave showing instructions.
We also bought a ring camera and security camera so we could always see who was visiting the property.
I think this definitely depends on if it’s a seller or buyer market also
I am selling my house FSBO, if the tenant or friend want to buy my house and agree to the price, mean I have the buyer already, what I should do to prosses and take care the closing, do I ho yo Escrow company and pay them
for the work done is this a right thing to do?
Purchase and sale agreement.
Is the title company gonna facilitate de paperwork? And is escrow and title company two separate things?
What about contingencies and deposits? Might be a great followup video!
examples of the emails, paperwork, and legal documentation, and how its written is what i was hoping for...
I tried to buy a "for sale by owner" house. I agreed to pay their real estate fees for my realtor. They were a pain. The house failed some really major inspection stuff, they refused to fix critical stuff. We walked away. They'll need to disclose it now to future buyers. They made a ton of mistakes. Been on the market a year in a hot market.
Good Information. Thank you. Who usually pays the title company?
I need to sell my home as is,i just cant afford the upkeep,it needs insulation i have a room that has 3 heater vents and it doesnt put out heat! kitchen needs work house needs paint yard is filled with weeds. floors need work. Im in over my head
There was a time when buyers didn't need to sign a contract with the buying agent. In those days agents had to work for their commission. Today once agents get you to sign the line, they automatically get the listing commission, don't have to do anything...free money. The buyers agent does the same, once you sign, so now as a buyer your on their schedule, not yours and you basically get told here's all the listings in your price range, get back to me when you see something you like. Usually you see a buyer in one car, the agent in another, they no longer taxi people around, only to buy from their best friend after the agent does all the leg work. Your screwed either way, not much incentive for the agent accept to cash the commission check once the broker receives it.