Comments on: For Sale By Owner http://www.consumerismcommentary.com/2005/08/29/for-sale-by-owner/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 08 Nov 2009 07:50:42 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Troy http://www.consumerismcommentary.com/2005/08/29/for-sale-by-owner/#comment-838 Troy Tue, 14 Mar 2006 10:45:48 +0000 http://wp.consumerismcommentary.com/?p=475#comment-838 That's a common practise all over the world to charge that commision. But as you said we should pay for someone's good work. That’s a common practise all over the world to charge that commision. But as you said we should pay for someone’s good work.

]]> By: klauss http://www.consumerismcommentary.com/2005/08/29/for-sale-by-owner/#comment-837 klauss Tue, 30 Aug 2005 09:08:59 +0000 http://wp.consumerismcommentary.com/?p=475#comment-837 I have bought a house FSBO and the people did not know what they were doing at all. One was a stay at home and dedicated every day to staying on top of things and just had no clue. Would ask my broker for advice all the time. Ended up costing them on because my broker made it clear they were working for my best interest, albeit their commision, but I do not mind paying for good service. I agree commisions are large, but are rarely as easy to come by as they have been just recently. I have bought a house FSBO and the people did not know what they were doing at all. One was a stay at home and dedicated every day to staying on top of things and just had no clue. Would ask my broker for advice all the time. Ended up costing them on because my broker made it clear they were working for my best interest, albeit their commision, but I do not mind paying for good service. I agree commisions are large, but are rarely as easy to come by as they have been just recently.

]]> By: Jonathan http://www.consumerismcommentary.com/2005/08/29/for-sale-by-owner/#comment-836 Jonathan Tue, 30 Aug 2005 09:01:08 +0000 http://wp.consumerismcommentary.com/?p=475#comment-836 I've definitely seen this in my neighborhood. Almost 2/3rds of them start out FSBO, then a month later they get the 1.5% commission cheapo guys, and then finally they get a real full service broker. Every time, it's almost funny. I’ve definitely seen this in my neighborhood. Almost 2/3rds of them start out FSBO, then a month later they get the 1.5% commission cheapo guys, and then finally they get a real full service broker. Every time, it’s almost funny.

]]> By: mbhunter http://www.consumerismcommentary.com/2005/08/29/for-sale-by-owner/#comment-835 mbhunter Tue, 30 Aug 2005 07:39:41 +0000 http://wp.consumerismcommentary.com/?p=475#comment-835 The brokers aren't going to fight that hard for a good price. Sale prices for real estate agents' own properties exceed the sale prices for clients' properties by 3%. (_Freakonomics_ said this, so it must be true. ;) ) Why? Any increase in the sale price of an agent's own property goes into their pocket 100%. Any increase of the sale price of their clients' properties goes into their pocket at 1.5 cents on the dollar. Not really worth it to them. Using this "what's in it for me" mentality, it might be best worth it to use the MLS and pay the buyer's agent the 3%, because the typical buyer's agent really isn't going to dicker with you that much. Why not? They lose money if they get a lower price for their client. They just want to close the sale. That's the only way they make money, and they need to do this as fast and as often as possible. Or, if you are in a really hot market, just stick a sign on the front lawn and educate yourself on how to sell the property, rather than paying the buyer's agent thousands of dollars just for holding the buyer's hand. The brokers aren’t going to fight that hard for a good price. Sale prices for real estate agents’ own properties exceed the sale prices for clients’ properties by 3%. (_Freakonomics_ said this, so it must be true. ;) ) Why? Any increase in the sale price of an agent’s own property goes into their pocket 100%. Any increase of the sale price of their clients’ properties goes into their pocket at 1.5 cents on the dollar. Not really worth it to them.

Using this “what’s in it for me” mentality, it might be best worth it to use the MLS and pay the buyer’s agent the 3%, because the typical buyer’s agent really isn’t going to dicker with you that much. Why not? They lose money if they get a lower price for their client. They just want to close the sale. That’s the only way they make money, and they need to do this as fast and as often as possible.

Or, if you are in a really hot market, just stick a sign on the front lawn and educate yourself on how to sell the property, rather than paying the buyer’s agent thousands of dollars just for holding the buyer’s hand.

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