Selling Million Dollar House Without a Broker ?

[HTSS_TR]

If you are selling your house worth around $1.2-1.4 mils do you need to have a real estate broker/agent ? In a hot So Cal housing market there are more buyers than houses available, especially in an area with top rated high school only few houses available.

Year to date, there are 3 houses sold in the last 3-4 weeks at more than listing price. 1 house listed at $1.7 mils and sold for $1.901 mils, another listed at $2.7 mils and sold for $2.75 mils, the third one listed at $1.7 mils and sold for $1.75 mils.

Without agent involved, you save 6% commission which is $78,000 if the house is sold for $1.3 mils. If you have plenty of time to sell your house at fair market price, do you really need a broker ?

 

[Brian123]

Originally Posted By: HTSS_TR
If you are selling your house worth around $1.2-1.4 mils do you need to have a real estate broker/agent ? In a hot So Cal housing market there are more buyers than houses available, especially in an area with top rated high school only few houses available.

Year to date, there are 3 houses sold in the last 3-4 weeks at more than listing price. 1 house listed at $1.7 mils and sold for $1.901 mils, another listed at $2.7 mils and sold for $2.75 mils, the third one listed at $1.7 mils and sold for $1.75 mils.

Without agent involved, you save 6% commission which is $78,000 if the house is sold for $1.3 mils. If you have plenty of time to sell your house at fair market price, do you really need a broker ?


No, my Dad's next door neighbor sold her house without an agent, you can maybe GOOGLE Selling your house without an agent, and see what you find.

 

[JOD]

You certainly can sell it without a broker--but you're almost certain to make less money that you would otherwise. Listing it yourself or with the aid of service like Redfin to save the selling agent commission is one thing--but not paying a buyer's agent commission is just penny-wise and pound-foolish. It's a bad idea and it'll cost you money.

Buying FSBO's and flipping them was pretty much my ticket to a very early retirement, and the biggest reason why is that 1) people don't know how to sell their own houses and 2) buyer's agents have the clients. Trying to cut them out of the loop is a bad idea--unless you're talking about something like Bellosguardo. A 1.4 million dollar house in SoCal is a nice house, but it's still a normal house and your best bet is to sell it through conventional channels. If you want to save part of the commission though, you could certainly use a broker like Redfin--you'll just have to do more work yourself.

Bottom line, most clients are working with agents; by trying to avoid a selling commission you're going to eliminate most of your potential buyers.

 

[Mackelroy]

Try to deal directly with a Title company, they know all that's needed legally, and they are the ones that actually manage the deal. If in a sellers market, buyers tripping over themselves, you might come out well.

Id go consult with a Title company, and see what they say.

 

[rjundi]

No just a decent lawyer or title company and time.

 

[linkbelt]

Engage a real estate attorney. He/she will handle the closing and also the sales contract. Attorney will even handle the buyers earnest money prior to the sale. You will save TONS of money. If you are in a buyers market, you have it made.

 

[stockrex]

no, but you do need to list in the MLS system, which itself is a monopolistic scam,
find an agent who will JUST list it in the MLS system for you for a fee, like $500.

 

[Win]

No, you don't, a lawyer can handle the sale transaction.

Realtors are marketers - so you have to weigh one against the other.

It's a good idea to have a lawyer, anyway, frankly.

 

[JHZR2]

The MLS system may or may not be important in a buyers market. If you have time and a firm price based upon something, then so long as you get that price and feel its a deal, so be it. You may be less likely to have a bidding war, but so what?

The interesting thing is if the buyer uses an agent and that agent, who you typically pay the commission to, expects you to pay.

Im sure you can advertise open houses and get publicity through other channels.

 

[hattaresguy]

You want to get your house on the MLS and Realtor.com, once its on Realtor.com all the other websites pick it up.

If your intelligent, know the real estate market, and know how to market homes you can sell your house yourself. The problem is 99% of sellers do not.

You can use a service like isoldmyhouse.com and offer 2% to a buyers agent which will get you showings. Doing just that will get you about 75% of the marketing that a listing agent would provide. But you have to be the agent, so that means stage the house, put a lockbox on it and deal with showings.

 

[hatt]

You need an agent if you don't want to deal with an endless parade of unqualified, low balling, tire kickers. Most homes are sold through real estate brokers. Meaning most buyers are paired with real estate agents. The people grinding around town looking for FSBOs are looking for a deal. People looking for deals aren't paying market value. So you save 6% by selling the house for 85% of market value. The numbers don't add up.

 

[hatt]

Originally Posted By: stockrex
no, but you do need to list in the MLS system, which itself is a monopolistic scam,
find an agent who will JUST list it in the MLS system for you for a fee, like $500.
I pay good money for the MLS, why would I let you use it for free so you can cut me out? You are more than welcome to start a real estate listing service.

 

[Win]

Originally Posted By: hatt
You need an agent if you don't want to deal with an endless parade of unqualified, low balling, tire kickers. Most homes are sold through real estate brokers. Meaning most buyers are paired with real estate agents. The people grinding around town looking for FSBOs are looking for a deal. People looking for deals aren't paying market value. So you save 6% by selling the house for 85% of market value. The numbers don't add up.


Very true. I'd give a used car away before having to deal with the endless parade of tire kicking, low ball, used car buyers that want a new car and service records for 20% of the price of one.

I can't imagine having that kind of riff raff traipsing through an occupied home. A good number of them would probably just be casing the place.

Commercial property would be a different story.

 

[JHZR2]

Originally Posted By: hatt
You need an agent if you don't want to deal with an endless parade of unqualified, low balling, tire kickers. Most homes are sold through real estate brokers. Meaning most buyers are paired with real estate agents. The people grinding around town looking for FSBOs are looking for a deal. People looking for deals aren't paying market value. So you save 6% by selling the house for 85% of market value. The numbers don't add up.


Apparently youre an agent, so have a viewpoint specific to that.

So what exactly does an agent do that prevents those same folks from showing up? Last I checked, an agent cant discriminate or impede the sale of a home based upon any criteria. And, as a buyer, someone could go to the agent and demand that they offer 85% of the asking price as it is. Happens all the time. Thefts occur even when an agent is showing a home. Happened to a cousin of mine. Apparently it isnt the filter that some make it out to be.


I recommend reading the OP, which clearly states that it is a hot market and he has plenty of time. Seems like an optimum opportunity to cut out what is a major dent in the proceeds from the sale. He doesnt have to accept any offers he doesnt feel are suitable, and doesnt have to open his door to show to anyone if he doesnt desire.

There are opportunities where there is a lot of value added by a realtor. I used one and was very pleased. But I also wasnt paying 6% to sell anything. I can understand why he may want to avoid it, and you should too.

 

[stockrex]

Originally Posted By: hatt
Originally Posted By: stockrex
no, but you do need to list in the MLS system, which itself is a monopolistic scam,
find an agent who will JUST list it in the MLS system for you for a fee, like $500.
I pay good money for the MLS, why would I let you use it for free so you can cut me out? You are more than welcome to start a real estate listing service.


Exactly, even you have to pay to play in the MLS system, money making tool for a few.
"u no work, u no get pay"
, nobody is cutting you out bud, if I choose do the work myself I should be able to save $$$, free market right?

Op, don't forget to mention in ad what you will LIMIT The buyers agent to in terms of commission pls.

 

[Mykl]

Originally Posted By: JHZR2
And, as a buyer, someone could go to the agent and demand that they offer 85% of the asking price as it is.


The funny thing about the asking price.... if it's priced 15% too high, you should expect to get offers that are at least 15% lower than what you want.

This is another thing that an agent could be good for, helping you with pricing your house realistically. An agent can provide accurate comparables to give you a good idea of what your house is actually worth. Maybe there's a way to pay for this service without signing a contract with a broker and being assigned an agent, but without that data you're flying blind when it comes to how much you could reasonably ask for the home you're selling.

 

[rjundi]

Personally I would test waters without agent and see how it goes.

I did such a thing and sold my first home in 6 hours myself. My second home I got tire kickers and limited traffic. Such a pain. Finally hired an agent who found the correct buyer (incredible lot not much house) thru connections and sold my home for asking - half a fulled failed septic system.

 

[hatt]

Originally Posted By: stockrex
Originally Posted By: hatt
Originally Posted By: stockrex
no, but you do need to list in the MLS system, which itself is a monopolistic scam,
find an agent who will JUST list it in the MLS system for you for a fee, like $500.
I pay good money for the MLS, why would I let you use it for free so you can cut me out? You are more than welcome to start a real estate listing service.


Exactly, even you have to pay to play in the MLS system, money making tool for a few.
"u no work, u no get pay"
, nobody is cutting you out bud, if I choose do the work myself I should be able to save $$$, free market right?

Op, don't forget to mention in ad what you will LIMIT The buyers agent to in terms of commission pls.
Don't worry, agents aren't being cut out. Most FSBOs give up sooner or later go through an agent. Why waste six months to a year marketing to a small number of buyers? If you can do it good for you. I'm not mad at ya. I just have to remember to call you in a few months.

 

[hatt]

Originally Posted By: JHZR2


Apparently youre an agent, so have a viewpoint specific to that.

So what exactly does an agent do that prevents those same folks from showing up? Last I checked, an agent cant discriminate or impede the sale of a home based upon any criteria. And, as a buyer, someone could go to the agent and demand that they offer 85% of the asking price as it is. Happens all the time. Thefts occur even when an agent is showing a home. Happened to a cousin of mine. Apparently it isnt the filter that some make it out to be.


I recommend reading the OP, which clearly states that it is a hot market and he has plenty of time. Seems like an optimum opportunity to cut out what is a major dent in the proceeds from the sale. He doesnt have to accept any offers he doesnt feel are suitable, and doesnt have to open his door to show to anyone if he doesnt desire.

There are opportunities where there is a lot of value added by a realtor. I used one and was very pleased. But I also wasnt paying 6% to sell anything. I can understand why he may want to avoid it, and you should too.
I certainly understand WHY people want to sell their own house. I also know the numbers and statistics do not favor them. And of course we can't cut out all the tire kickers but the numbers are significantly lower. FSBOs typically get calls all day long. Just ask them. But it never sells. Once I put up a sign most of the calls stop. Why? Because I'm dealing with more serious buyers willing and able to spend money. The low ballers stay clear because they know if it's a steal it'd already be gone.

 

[hatt]

Originally Posted By: rjundi
Personally I would test waters without agent and see how it goes.

I did such a thing and sold my first home in 6 hours myself. My second home I got tire kickers and limited traffic. Such a pain. Finally hired an agent who found the correct buyer (incredible lot not much house) thru connections and sold my home for asking - half a fulled failed septic system.
Odds are you left substantial money on the table with a six hour sale.