Hi all, I am researching if it is worth using one of these FSBO services like Hauseit or RealDirect to sell my house in NYC. From what I understand, if I use one of these services, I will only have to pay a 1% brokers fee; however, won't I end up paying 4% since I still have to pay 3% to the sellers agent? They all seem to advertise "pay only 1%" but that has to be wrong, no? I realize there can... [more]
Hi all,
I am researching if it is worth using one of these FSBO services like Hauseit or RealDirect to sell my house in NYC. From what I understand, if I use one of these services, I will only have to pay a 1% brokers fee; however, won't I end up paying 4% since I still have to pay 3% to the sellers agent? They all seem to advertise "pay only 1%" but that has to be wrong, no?
I realize there can be quite a difference between 4% and 6%; at the same time, I will be doing the leg work when it comes to prepping the house and paying for professional photos etc. If it comes down to saving $20K, (not including the upfront flat fees I will pay the FSBO service to use its service), I am not sure if it's worth it. It's a two family home, and while I do have the time to put in the work, it will be a lot of work.
Can someone let me know if I am missing something, or will I be on the hook for the 3% for the seller's broker, no matter how I go about selling my place? Do the buyers literally refuse to buy unless you pay their broker? Can I agree to pay the 3% but at the same time raise my asking price by 3%?
I don't mean to suggest that agents don't deserve money for their hard work; I am simply willing to do a bunch of that hard work myself in exchange for a guaranteed %-age savings in my final profits from selling. We found the house ourselves back when we bought it through word of mouth in the neighborhood, so we never dealt with a buyer's agent, only a lawyer, so this is all new to me.
Thank you for reading!
Megan
[less]
Hauseit says this regarding the 1% figure: "Does not include the commission you choose to offer to buyers’ agents. We recommend offering a market rate buyer’s agent fee for full exposure."
So yes, you would need to offer something reasonable to buy side agents, say 2.5% or 3%. It seems like 2.5% you can get away with these days without people complaining, so your total cost could be 3.5% max, and it seems like you'd get more savings for a direct buyer.
If you're very intent on saving on the commission, why not do it yourself with the Agent Assisted FSBO option? It's currently $399 I believe, flat fee, upfront. And you can save all 6% if you found a direct buyer: https://www.hauseit.com/fsbo-nyc/
And no you wouldn't owe anything else if you found a direct buyer ....
Where is your property and what are you thinking about listing it for?
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Response by douglasternyc
over 7 years ago
Posts: 62
Member since: Sep 2009
Hi Megan-
We have both an Agent Managed and an Owner Managed service at RealDirect and we recommend you pay a "market" buyer's broker commissions with each, to attract the biggest buyer pool. With Agent Managed, we handle everything for you - from photos to floor plans, open houses, board package review, etc. For our Owner Managed service, the owner of the home does the showings and manages the process with an agent from our team. As for pricing, feel free to reach out to me directly as we run specials depending on the time of year, and these posts live forever. We've been in business for about 10 years and have sold over 1000 homes in NYC. We are NYC based, have a highly experienced team, and leverage technology to get your home sold as quickly as possible. And the team you see on all of our listings is the team you speak to when you sign up. We don't farm out listings to other brokerages - we are accountable from the beginning to the end of your experience with RealDirect.
Doug Perlson
Founder, RealDirect
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Response by 300_mercer
over 7 years ago
Posts: 10539
Member since: Feb 2007
Farming out probably gets you the lowest quality agent.
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Response by JR1
over 7 years ago
Posts: 184
Member since: Jun 2015
Interesting, knew that "ximon" is one of Doug's usernames, but didn't know you worked for them as well 300_mercer!
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Response by 300_mercer
over 7 years ago
Posts: 10539
Member since: Feb 2007
JR, I do not. And believe neither does Ximon. Farming out will indeed get you the lowest quality broker. I do not know Doug and I have no comments on his quality. Keith Burkhardt does most of my business. He is doing another purchase for me as I write. As a promoter for Hauseit, I would think you will disclose your name as other honorable real estate brokers or brokerage promoters do.
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Response by 300_mercer
over 7 years ago
Posts: 10539
Member since: Feb 2007
I think no name self promotion in securities brokerage industry will be akin to what a bucket shop does for securities they want to pump and dump.
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Response by ximon
over 7 years ago
Posts: 1196
Member since: Aug 2012
JR1, please do not drag me into your pissing contest. I am not Doug.
I am Negan!
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Response by 300_mercer
over 7 years ago
Posts: 10539
Member since: Feb 2007
What I do not understand is why Hauseit would not just pay Streeteasy some money for advertising rather than have some shills promoting their website with no broker name. Let the buyers and sellers decide.
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Response by JR1
over 7 years ago
Posts: 184
Member since: Jun 2015
Ahh, thanks for clarifying, 300_mercer is Keith, sorry about the mix up
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Response by front_porch
over 7 years ago
Posts: 5311
Member since: Mar 2008
I have met Keith, and I have met 300_mercer; they're different people.
ali r.
{upstairs realty}
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Response by tribby
over 7 years ago
Posts: 36
Member since: Oct 2011
I was looking into this as well for the future sale of my apartment. Thanks to JR1's posts, it's an easy decision for me to never use Hauseit. If this is how they promote themselves, who knows what will happen once you use them.
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Response by 300_mercer
over 7 years ago
Posts: 10539
Member since: Feb 2007
Thank you Ali. Pleasure working with you on the last deal. Hopefully it closes soon.
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Response by CaptainOfTheGate
over 7 years ago
Posts: 78
Member since: Jun 2017
Let's play nice guys. Jealousy is not a good look.
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Response by LuxuryBroker
over 7 years ago
Posts: 66
Member since: Jul 2017
It's hilarious to see all the discount brokers fighting each other. Good luck trying to get buyers and sellers to work with a bunch of children!
And easy answer. Don't work with a discount broker. We don't pick up their calls so it doesn't matter if you save 10% if you never do a deal. Goood luck!
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Hi Mega, did some research on your behalf and it seems you're referring to Hauseit's 1% for Full Service listing service: https://www.hauseit.com/agent-managed-listing/
Hauseit says this regarding the 1% figure: "Does not include the commission you choose to offer to buyers’ agents. We recommend offering a market rate buyer’s agent fee for full exposure."
So yes, you would need to offer something reasonable to buy side agents, say 2.5% or 3%. It seems like 2.5% you can get away with these days without people complaining, so your total cost could be 3.5% max, and it seems like you'd get more savings for a direct buyer.
If you're very intent on saving on the commission, why not do it yourself with the Agent Assisted FSBO option? It's currently $399 I believe, flat fee, upfront. And you can save all 6% if you found a direct buyer: https://www.hauseit.com/fsbo-nyc/
And no you wouldn't owe anything else if you found a direct buyer ....
Where is your property and what are you thinking about listing it for?
Hi Megan-
We have both an Agent Managed and an Owner Managed service at RealDirect and we recommend you pay a "market" buyer's broker commissions with each, to attract the biggest buyer pool. With Agent Managed, we handle everything for you - from photos to floor plans, open houses, board package review, etc. For our Owner Managed service, the owner of the home does the showings and manages the process with an agent from our team. As for pricing, feel free to reach out to me directly as we run specials depending on the time of year, and these posts live forever. We've been in business for about 10 years and have sold over 1000 homes in NYC. We are NYC based, have a highly experienced team, and leverage technology to get your home sold as quickly as possible. And the team you see on all of our listings is the team you speak to when you sign up. We don't farm out listings to other brokerages - we are accountable from the beginning to the end of your experience with RealDirect.
Doug Perlson
Founder, RealDirect
Farming out probably gets you the lowest quality agent.
Interesting, knew that "ximon" is one of Doug's usernames, but didn't know you worked for them as well 300_mercer!
JR, I do not. And believe neither does Ximon. Farming out will indeed get you the lowest quality broker. I do not know Doug and I have no comments on his quality. Keith Burkhardt does most of my business. He is doing another purchase for me as I write. As a promoter for Hauseit, I would think you will disclose your name as other honorable real estate brokers or brokerage promoters do.
I think no name self promotion in securities brokerage industry will be akin to what a bucket shop does for securities they want to pump and dump.
JR1, please do not drag me into your pissing contest. I am not Doug.
I am Negan!
What I do not understand is why Hauseit would not just pay Streeteasy some money for advertising rather than have some shills promoting their website with no broker name. Let the buyers and sellers decide.
Ahh, thanks for clarifying, 300_mercer is Keith, sorry about the mix up
I have met Keith, and I have met 300_mercer; they're different people.
ali r.
{upstairs realty}
I was looking into this as well for the future sale of my apartment. Thanks to JR1's posts, it's an easy decision for me to never use Hauseit. If this is how they promote themselves, who knows what will happen once you use them.
Thank you Ali. Pleasure working with you on the last deal. Hopefully it closes soon.
Let's play nice guys. Jealousy is not a good look.
It's hilarious to see all the discount brokers fighting each other. Good luck trying to get buyers and sellers to work with a bunch of children!
And easy answer. Don't work with a discount broker. We don't pick up their calls so it doesn't matter if you save 10% if you never do a deal. Goood luck!