FSBO-1% off price if no salesperson

yes, it's not brain surgery folks. Please don't let an agent spin you around making you think it is. and you can't possibly do it without them. You work hard for your money don't let someone take $60,000 on a $1,000,000 sale. Unless your Buffett that is a lot of money people.

Time to take your meds steve.

JMHunt..first of all thanks for bringing my thread back up to the top. Hopefully now more sellers will get a chance to read my post. So thanks.
I just can't handle all the BullSheet that's out there and a huge pile is created by real estate agents. So I'm trying to get the word out. Hopefully we can eliminate this industry and let hard working homeowners who have paid their mortgages for all these years keep their equity instead of giving it away to brokers. That's all. Have a nice day.

It is proven that property listed with Real Estate Brokers obtain higher selling prices than FSBOs. So that $60K commission you are saving on $1,000,000 is actually a loss from the $1,200,000 you could have gotten if you listed with a broker. I wish you luck.

Thank you for capitalizing Real Estate Broker.

Lol @ JMHunt. Only a moron would sell a place worth $1.2MM for $1.00MM. Selling a place by yourself takes hardly any skill with the access of information available by the average person.

@LJ_NYC if thats true , why the vast majority of owners use brokers ? There is no law that says that owners have to use brokers.

>I would in my ad highlight "1% off price if arrive without salesperson"

This pretty much tells me the buyer that you are going to be otherwise stubborn about your price and difficult to negotiate with. Pass

If only it were that easy Steve F, "After offer accepted then tell buyer to have their lawyer call your lawyer, hand them the number and say see you at the close." Not in today's frenzied market...

Like I always say, you should proceed as you wish- buyers, sellers have options to choose the best fit for them. We certainly understand that.

Keith Burkhardt
The Burkhardt Group

gothamsboro..the 1% off is to get people to come to the listing. Agents are NOT going to bring their clients to possible FSBO listings because they won't get their commission. This is highly unethical and to get around this the 1% COUPON will do it. From then on normal negotiations ensue.

JMHunt...please provide this evidence.
I feel that sellers are not only up against buyers but their own agents as well. The main objective for an agent is to sell fast. For a million dollar listing they don't care about holding out and getting you 1,050,000 vs 1,000,000 because that is only an extra $1,500 commission for them. $31,500 vs $30,000. The agent only gets paid when the deal CLOSES they want to close. However $50,000 is alot of money to the seller. So the seller is actually up against the buyer and his agent who wants him to counter as low as possible and close at 1,000,000 so he/she can get paid. That's all they care about.

So the seller is actually up against the buyer and his OWN agent...

Agents have a stranglehold on buyer mentality. "oh it's a free service for agents to take me around and show me places"...ahhh sorry Mr. and Mrs. Buyer but someone is going to pay for the agent walking you around and that payment is included in the apt price. And guess what? You pay Mr. Buyer. And it's not chump change either. It's 6% of the price. That's an extra 60k on 1M coming out of your pocket. Ouch.

steveF, what do you do for a living?

Is it possible to do an FSBO and still offer the 3% commission to buyer's brokers?

Yes. Otherwise you're limiting yourself to unrepresented buyers.

Steve, I don't think my cash buyer coming in from Asia next week to pick up a couple of condos is looking for FSBOs on Zillow. He's looking for a broker who can educate him and is sensitive to his requirements and time restraints. Perhaps what your taking about is best suited for the buyer looking for a Jr 4 overlooking the Cross Island Parkway in Bayside. Anyone selling a $1,000,000+ property is not so ignorant as to do it themselves thinking they will save $60K.

NWT, if you don't offer buyers agents/brokers the 3% then the agent/broker will NOT take their CLIENTS your apt. So basically the agent is screwing their buyer out of what may be the buyer's dream home because they don't get paid. Fantastic huh?
Agent: "sure we'll find you your dream home Miss Buyer not matter what my interests are aligned with yours, that home is out there lets find it together!" "ohh just one thing I won't be taking you to any FSBO possible dream home because I won't get paid and I will hide your dream home from you as best I can so you will only buy through me and I get my money"

JMHUNT...sorry but your main objective is to get your buyer to buy fast and your seller to sell fast. Manipulating a seller into listing a price as low as possible is your goal. Getting a buyer to bid as high as possible is your goal. Sounds like your clients are up against you as well.

Question JMHUNT. When educating your Asian client who looks to you for real estate guidance, education and full disclosure of the market as you say. Would you being him to a FSBO that is just what he's looking for? Would you????????????

being him = bring him

@milenkopekija A lot of people are lazy and/or dumb.

@steveF: NO, my main objective is not to have my clients buy fast or seller sell fast. I wouldn't be doing this for 20 years if I was in it for the quick buck. I provide a valuable service and get paid for it. I've built relationships with both buyer's and sellers over the years. I'm trusted and referred again and again. I normally wouldn't waste my clients time showing them FSBOs. Who needs to watch a seller shoot themselves in the foot......I don't need to hear a seller who doesn't know how to show a property talk my clients ear off, not giving them a chance to view the unit.....we don't need to hear about all the "upgrades" that were made or why their apartment is the best one in the building. I don't feel like writing a dissertation to the seller after showing the property when they demand to know in detail why my buyer was not interested. If a FSBO was a perfect fit and the seller was not paying a commission, under most circumstances I would have my client sign a buyer's broker agreement and have them pay my part of the commission. I'm sure you work gratis but I don't.

What neighborhood is this in?

JMHunt, Asia is a big place. To Alan's question, what neighborhood in Asia?

Jimmy Boy, answer the troll's question.

My clients will pay my fee any day if I bring them to a FSBO, its a relationship business. Some sponsor units this days dont pay brokers commission either. Your comment about eliminating the industry is an interesting one. This is a 60Bilion dollars a year industry, I dont think its going away soon. if someone is making the biggest investment in their life they will probably want a pro to handle it. You dont go to a dentist to fix your car. I saw a FSBO in my building list last year at prime time, great apt went into contract 3 times and got board turn downs while every other comps was selling like hot cakes. Now he has a broker and the deal will likely go through.. Just a tip if you plan to do this on your own do your research and expect to possibly not get it done right... wishing you luck.

alan...is that all you have? when trapped in a corner with the truth start calling names. Brilliant.

JMHunt...But why don't you let your buyer make the choice of whether or not the FSBO property is desirable? We all know it's not brain surgery here. The buyer either likes the property or not.

Do you offer your buyer the buyers broker agreement up front explaining the FSBO possibility and scenario? Or do you just conveniently not have any FSBOs show up on your search list for your buyers?

Trust and ethical behavior for your client means FULL DISCLOSURE meaning all apt possibilities. FSBOs

I'm not a broker or in the industry. Yet I can conclude, FSBOs are less serious, are more difficult to deal with, and have generally more unrealistic price expectations if they are splitting hairs on 1%. So if I were a broker, I could pretty much well justify not showing a FSBO simply for legitimate and non-economic reasons.

gothamsboro...You are supposed to present all possibilites to your client. You're client is TRUSTING you to present to them all apts available in their price range and location. If a FSBO does not meet YOUR requirements you are supposed to INFORM your client of YOUR reasons WHY this property doesn't work and then let the buyer make the decision to see it or not. Not YOU!

You are not an ethical broker if you fail to disclose ALL POSSIBLE and AVAILABLE APTS.

Man this industry is full of shysters..

@Steve F. Brokers/agents have to be transparent these days, buyers are all on StreetEasy, they will see that FSBO and ask their agent about it. Then you have to decide how you want to handle it. I have to say our clients have always wanted us involved, it's not always so easy, comfortable dealing with a seller directly. If a seller absolutely states s/he will not compensate a broker, we support our clients to proceed without us. We will even advise if asked. This business is all about service, long term relationships. We have a few options in dealing with a FSBO to make sure that everyone is happy. And if I think they would be served better without us involved, I will advise them of this.

Keith Burkhardt
The Burkhardt Group

SteveF - I think you should redirect frustration at buyers who feel they need brokers. They are the ones ultimately paying the broker through higher price.

NYCNovice..yes u are correct. Word needs to get to buyers that the "service" is not free. They are ultimately paying for the broker walking them into homes and showing them the kitchen.

The problem is brokers conveniently hide FSBO listings from their buyers to keep their monoploy on buying and selling properties. Buyers need to wake up and do the buying themselves and not give away 6%.

steveF, you talk as if the broker representing the buyer actually owes you, the FSBO seller, a duty. He doesn't.

@SteveF. I don't hide FSBOs from my clients b/c, like KeithB said, every buyer has the same alerts sending listings to their inbox, so they're going to see them. I have also sent clients to FSBOs in the past b/c it made sense for my client (and am actually sending one this weekend). It's about taking the long view with a client relationship, and because my business model allows me the flexibility to take a lower commission than conventional brokers, owners have generally been willing to work with me.

Dan Gotlieb
Digs Realty
digsrealtynyc.com

excellent DanDigs. Unfortunately you are the exception. I salute your efforts and wish you all the best on your business model.

gothamsboro...huh? No not me the seller the broker owes it to his/her buyer to show them every apt available.

And that has nothing to do with you.

Troll, that isn't really steveF talking. It's the cinnabar emanating up from the land under and around his LIC condo.

steveF is a hatter, not a hater.

http://therealdeal.com/blog/2015/03/04/the-6-percent-home-sale-fee-isnt-sacred/

The dispute in Denver pits discount-fee brokers — and their advocates — against traditional brokerages. Stephen Brobeck, executive director of the Consumer Federation of America and a long-time critic of real estate industry practices, says “the lack of disclosure of brokerage fees significantly increases consumers’ cost of purchasing a home.” Glenn Kelman, CEO of Redfin, a national realty firm with 54 offices in 29 states and the District of Columbia, charges 1.5 percent to list a home and rebates money to buyers, and he agrees that greater disclosure upfront is essential for today’s Internet-savvy consumers.

Not only is it essential it is inevitable