Save Moneey . . . Sell by Owner

Save Moneey

Save Moneey . . . Sell by Owner

You need a broker to sell real estate is a popular real estate myth is. It is simply not true. Your can save thousands of commission dollars by selling property by owner.

If you decide to sell real estate by owner, here are seven choices:

1.Sell by owner and offer no coop to buyer agents. Just say no.

2.Sell by owner and list on local MLS for a flat fee

3.Hire a licensed broker or an attorney to write the contract

4.Offer a buyer agent coop fee; usually of a full service fee

5.Get full service for a discounted commission

6.Sell on ebay pay their fees

7.Pay exorbitant 6-7% for full service

Let's examine each choice. Pick one or combine them.

1. Sell by owner offer no coop to buyer agents:

You are not represented by a broker so there is NO commission paid to anyone.

Pros:

You save commission dollars

You maintain complete control

Cons:

There may be errors in your contract

You may not have access to state approved forms

You're at risk of legal recourse later. Your contract may not be defensible in a court of law

Contract deadlines, inspection dates may not be addressed

Do you trust the buyer?

Suggestion:

Go with a Flat Fee MLS listing and hire either an attorney or a licensed broker to write your contract.

The cost is far less than a law suit.

2. List on local MLS for a flat fee and offer a buyer agent coop:

The best of both worlds. You remain a for sale by owner and you remain in control.

You save one half of the commission if the property is sold by a buyer agent.

Pros:

You increase buyer exposure. 90% of buyers buy through a broker

You pay half of a full commission and you get full MLS exposure

You maintain the right to sell by owner to your own buyer

Contracts will be on the correct forms if written by a buyer agent

If you opt to pay for contract assistance, your forms will be done correctly

Agents will call you to set showings and to present offers. You maintain control

Odds of selling quickly increase and you'll probably get a higher price

Cons:

It costs more money

The buyer is represented by an agent. You're not.

Suggestions:

Use plan two and three

Flat Fee coupled with contract review provides you with someone to look out for your interest in the transaction.

It will cost you far less than a law suit later.

You still save money and maintain some control.

3. A smart economical way to go, sell by owner and hire a licensed broker or attorney to write the contract:

Pros:

The contract will be written on the correct forms

Required inspections and deadlines will be addressed

Terms are usually defensible in a court of law

There is less chance of legal repercussions

Builds confidence between you and the buyer

Cons:

It will cost more money; it's well worth it

You have to find a broker or an attorney who'll write the contract for a reasonable fee.

4. Offer a buyer agent coop fee and remain a for sell by owner:

Pros:

You open the market to more qualified buyers

A licensed person will write your contract

You may sell quicker

You do not have to list with a broker.

You save money and maintain some control.

Cons:

It costs more money

The buyer is represented by an agent. You're not.

Not all agents who have buyers will find you if you're not on MLS.

Suggestions:

Use plan two and three.

Utilize either an attorney or a licensed broker to review the contract and write a counter offer, if needed.

Now you have someone looking out for your interest in the transaction.

It will cost you far less than a law suit later.

5. List full service MLS with a negotiated discount commission:

This is a great game plan if you don't mind doing some of the work but want more representation. Most brokers will negotiate on commission. If they won't . . . Find one who will.

Pros:

You have someone to review your offers, write counter offers and follow the transaction through to closing.

You still save money, though not as much as with a flat fee FSBO listing.

Your contracts will be on the correct forms

Inspections and contract dates will be monitored more closely

You're less likely to have legal problems after the fact

Cons:

It will cost you more money

You lose some control

6. Sell on ebay:

I know nothing about selling real estate on ebay; however I know it's popular. I am going to make some logical assumptions:

Pro:

You would save commission

Cons:

There would likely be contract errors

You may not have access to correct state approved forms

You could be wide open to legal action later

Suggestion:

At this time, I would not be comfortable recommending this choice.

7. Pay exorbitant 6-7% full service commission:

This is still an option and many folks are doing it.

Pro:

The broker takes over the sale.

You get a sign, mls, and various goodies

Your broker will present offers to you

Cons:

You pay too much to sell your home

You lose control

I could go on and on but I won't

Summary

There you have it:

Seven choices of how to sell by owner and save money.

Pick what's best for you.

The myth that you must have a broker and pay for full service is just not true.

Copyright Wee Dilts 2010

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