For Sale by Owner

market price... because everyone will always try to negotiate.

I am looking to buy for 6 yrs. Yes I hoped the price increase came down quicker, it did not. It gave me a lot of insight into the market over a long span. My overall experience with FSBO is that they are priced equal or above market rates. Why would any buyer bypass the real estate brokerage with its legally-binding activities, however shady, just to pay same money or more to an owner w/o the benefit of knowing who the owner is as a seller? Better the bad that you know than the same that you do not know?

As a buyer, I find that I'm just not comfortable in a FSBO situation because I'm dealing directly with the person who's heart is in the property. With a realtor I can speak frankly & praise as well as critique. I too wonder why someone would forego a professional. ANYWAY...In answer to your original query, definitely price it at market value.
Good luck!

AS a buyer, I would like to save at least 4 of the 6% broker comission. Why assuming the risk of going w/o broker and letting the seller rip the benefits 100%?

I would not have any problem dealing with the seller directly.
Price it at market price. I usually make an offer at 5 to 10% lower that the asking price.

What do you mean usually, how many times a month do you buy?

I am a very picky buyer. I made 3 offers in one year so far:

- 2BR co-op, asking price $550K, offered $485K in Oct. 06. Buyer said it would let it go for $500K. I said no. Buyer found another buyer at $505K and went on contract. 4 months later it didn't work out, it's back on the market at $495K as of today. I am not interested anymore.

- 2BR condo, asking price $570K, offered $500K in Nov. 06. Buyer wanted $525K. I didn't want to raise offer. 2 months later, buyer came back to me and said would let it go at $500K. I said I was not interested anymore. Unit still unsold. Pulled out of the market.

- 2BR co-op, asking price $450K in Nov. 06, offered $415K. Buyer rejected my offer. Eventually the unit was sold at $405K.

If you want more information please feel free to ask.

Millefeuille, meet millionfeuille: me, the pickiest :)

Hi. If you want to FSBO it I would put it just a bit below market value, in order to get the most interest. I would also decide whether to welcome brokers bringing buyers (paying them 3%).There are a great many buyers who just work with their broker and you will not be getting the maximum exposure by eliminating them.BTW there are alot of comprehensible reasons to fsbo, but the thought that you will get thigs ready and on the market faster than a broker is unlikely. I am a broker and we are all set to handle business expeditiously. So if you are going it alone do not cut out some important steps: Declutter your house, take very good pictures, make a temporary website with as much info as possible. Try to stay in the backround and don't talk too much. Try to emotionally distance yourself from the fact that it is your home, and objectively determine the most sellable aspects. Sometimes overbearing sellers can hinder a deal by being so present and involved that people find it difficult to imagine the property as their own. Finally, be aware that many buyers are looking to benefit from your elimination of a brokerage commission, and will negotiate with that in mind. I am not saying you cannot do this, but be careful, unemotional, and don't cut corners. If you decide that you are willing to pay a 3%(or even 2.5%) brokerage fee to brokers bringing buyers, stipulate that in your ad (brokers welcome, please contact for more info). Good Luck!!!

1 more thing to ad to my last post--make certain that you have all the paperwork necessary and everything lined up in order to expedite a contract once you have an accepted offer. Time kills deals, don't let yourself get strung along. Again, best of luck!

What makes you think you can get your apartment prepared for its first open house faster than a broker?

If you want to do FSBO, be sure to hire an attorney to negotiate offers for you. Your buyer will most likely have a broker or attorney represent them during the bidding process. You don't want to be the only one in negotiations without significant real estate experience.

I am not a broker. I would never do FSBO, because I don't have the time to market my own apartment. I could host a few open houses, but I couldn't show it by appointment during the day or in the evenings. I also wouldn't want to be home alone with strangers.

By not paying a brokers fee, many buyers brokers will not take their clients to see your unit. So be sure to market it very well!

there's no need to pay a broker 3%... you, as the owner regulate the price. I've seen owners negotiate their broker's fee to 1.5%. All these thousands of brokers want is $$$.

Anon #13--The reason to potentially offer buyer's brokers 3% (or2.5% even) is to make try to get maximum exposure, hence maximum price. Your assertion that the owner "regulates" the price is true but irrelevant. Brokers"regulate" whether or not they bring their buyers. 1.5% is NOT a great incentive, given that everything else on the market offers 2.5-(rarely)4%.

Yes, brokers are AWFUL human beings. If you doubt me read #10 !?!???

#8 no one cares that you're a picky buyer.

#16: I was replying to #7.
You don't need to read my post.

#8 if I were you, I would not brag about an inability to close a transaction.

I second that. #8, is your goal to stand on principal or to buy a place at the right price? Or to post on message boards just to make a point?

In any market, 'sloppy seconds' turns out to be a good deal if you like the place. And after you close & move in, you'll forget about the nonsense you went though to buy it 'cause in the long run it doesn't matter.

I wouldn't say 'inability to close a transaction'; it was my decision not to close the transaction. Anyway I am not bragging about it, trust me. I wish I could find the right place at the right price in order to move on with my life. That being said I am glad that I didn't close on any of those three deals in hindsight.

My point in my initial post is that you can negotiate the price 5% or 10% down from the asking price.

I do think that the key to getting a place at a good price is to not fall in love with the property; then you offer what you think it is worth & are comfortable with & if you don't get it you're not crying, you move on.

Never fall in love with any property until you own it. Otherwise, you are asking for heartache.

I have bid on three apartments:

The first was overpriced at $875K. I really liked it, but it wasn't worth $875K. I bid $800, they countered at $860K and I walked away. As much as I wanted this apartment, I wasn't going to overpay.

The second was very well priced at $850K. I bid $835K and eventually $845K. After my offer was accepted (but before we were in contract), the sellers got another bid for $860K with better terms and retracted their acceptance of my offer. It was heartbreaking.

I am in contract on the third. It was overpriced at $880K. We went to contract first at $830K, only to have the appraisal come back at $815K. The sellers recognized that no one would buy it for more than the appraised value (the buyers would have to cough up the difference at closing, after paying the 35% down payment required by the coop board). So we went into a second contract at $815K.

comment #22: did you close yet?

comment #23: did you find your own appraiser or use the banks. Its refreshing to see an honest appraiser, can u tell us which one u used

yes

Comment #25: if it is a yes to my question, congrats!

#22 Here...I am still in contract. The board has not yet approved me. But I don't anticipate any problems. It is a conservative board, but I am a boring, low-profile, non-celebrity, non-diplomat type who is financially qualified.

I used my mortgage company's appraiser. My mortgage company is CitiMortgage. When the appraisal came in lower than the sale price, I told the mortgage company I didn't want to play games and not to arrange for another appraisal.

The fact is, we don't all get our first choice of apartment. But I don't know anyone who is totally unable to find anything.

can you select which appraiser to use? I thought the bank does it as it's their mortgage.

What is the best way to search for FSBO properties in Manhattan? NY Times? Streeteasy? 2 cents: I live out of state and am moving to the city. Sold my condo in two weeks FSBO in a softening market. Took 2-3% less than the broker I met with thought it would sell for, basically splitting 6% commission with the buyer. Overall I'm happy with it and I think splitting the commission w/buyer is a good idea. It happened fast (sold to someone in my building), but if I did it over again, I'd get it out on the market to keep the pressure on the buyers. Definitely unclutter in a major way, clean it up, take good pictures. Offering 2.5 or 3% to buyer's agents ("buyer's agents welcome/3%") is a smart idea, I think; my lawyer (specializing in FSBO) suggested this exact thing. You get more interest and don't alienate the brokers, who will help sell your place to their buyers.

I've sold houses on Long Island FSBO, did very well, and now I'm looking to buy a coop piedaterre in Murray Hill/Tudor City and using brokers. I've never had luck with FSBO sellers because they price TOO HIGH. They have a number in mind of what they want to get,rather than studying the market to figure out what their property is actually worth, and asking something compatible with that. But as a seller, I would only do FSBO, it's fun and it can save big bucks.

I am different post, looking to buy for 6 yrs; I think I'll hang around a bit more though, for my budget is limited and all indicators are on housing in ny softening.

#29, I'm finding FSBOs on the nytimes every week and on craigs list. Remember that NYT ads may only run once. I haven't visited any I've seen yet cuz they weren't for us, but they are there. I tried posting a SEEKING ad on craigs list once, I heard from two brokers, no FSBOs.