Newsflash: FSBO Cautionary Tale

I fully support anyone who wants to FSBO, i completely understand that the majority of RE agents are gits, but…If you’re going to do it, please please please do your research for your own good.I’m repping a buyer of a FSBO and the sellers are so arrogant, but really they’re clueless. They did no research except looking at zestimate and posted their house on zillow. They did take some decent pictures at least.They’re disdainful of realtors and assured me they know exactly what they’re doing. The seller said “I’ve bought and sold 4 houses in the past 15 years, I know everything there is to know about how this works.” I’ve enjoyed playing dumb and asking them to share their “expertise”. all their blabbing gave up their negotiating position. They think I’m an idiot because I keep purposefully asking “dumb” questions, which works perfectly for my buyers.My clients are getting a deal of a lifetime. Below market price (by $30k according to the appraisal, about 6% of the purchase price, appraiser had to try hard to get it that low, under contract for easily $50k below spring market price) in a hot market, buyers didn’t have to compete, plus seller subsidy, plus seller paid warranty, plus a home settlement contingency, long ass contingencies, which i never lifted because the sellers didn’t know they should have asked, plus all other terms in favor of the buyer. Negotiated another $2,500 credit after the very clean home inspection – house was in great shape. In total, another $15k for my buyers.Any half wit agent would have laughed at the offer and home inspection request.Sellers didn’t realize they had to bring money to the table to sell this house. They did NOTHING up front, completely unprepared, they didn’t take my advice to have an attorney or other professional review the contract before signing it. They told me they didn’t need anyone else to look at it. I don’t think they even read the whole contract, because anyone who took the time would certainly know that the terms sucked for a seller.If these people would have listed w/an agent they would have received multiple offers (it’s a nice house, with better features, more sq ft than similar listings), likely escalating to over list price, 9 of 10 houses in this neighborhood are selling for over list price. Instead of bringing $5k+ to the table, they’d have walked away with $20-50k, even after paying 2 agents full 6%.If you’re going to FSBO please don’t operate w/the hubris that you know everything and ‘it’s not that hard, a monkey can do this’, which is one of the things they said to me when I asked why they chose to FSBO. It takes work and expertise to sell a house if you want the most money out of it.TLDR; Before deciding to FSBO, DO YOUR RESEARCH. know the correct market value of the your property, understand how your payoff works, and what your local seller paid fees include.

Read more at https://www.reddit.com/r/RealEstate/comments/6jbc0l/fsbo_cautionary_tale/?utm_source=ifttt

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s