For Sale By Owner - Or no?

[Courtney M.]

Hey everyone! I am amidst a flip in South Central LA where the average days on the market are in the 60's. Obviously selling the home *for sale by owner, saves me the commission and gives me more profit. Does anyone have success with this model?

OR - do you suggest getting your real estate license.

OR - bite the bullet and pay the commission - (which could be appx $15,000 for 3.5%)

For those of you who do a for sale by owner, do you hold open houses? Print your materials? List the house on any of the usual sites (redfin, trulia, zillow). What are your tried and true tricks for success?

[Michael Hassell]

I've had some success with FSBO. Know to that in many areas there are realtors who will list you in the MLS for a flat fee. I can get this locally for about $350. Yes I would hold open house and market to all the usual sites as mentioned above.

You talked about the 3.5% to a listing agent...but know that that is only half of the cost.  The listing agent AND the buyers agent will each be looking for 3-3.5% for a total of 6-7%....this is the reason I at least try to sell myself first.

I will list with a FSBO yard sign, the internet sites, and will advertise that the buyers agent/broker will be protected. In other words I will pay the buyers commission but save on the listing cost by doing it myself. In all honesty the vast majority of retail buyers need their hands held through a transaction so the buyers agent cost, while high, does help protect the deal. Most folks only buy one or two houses in a lifetime and the process is very intimidating. If you don't make it clear that the broker will be protected there is little incentive for them to show your house or walk a buyer through the process. Holding a special broker/agent only open house is another good idea, let them know there is free coffee/wine/food and it helps get a better turn out.

Also, have a mortgage broker ready to work with anyone that wanders in...a good mortgage broker in this case is worth their weight in gold.  Folks may well see your house and want to buy it....but have no idea how to go about that.  So make it easy for them...get a team in place to work through the process.  You need to have a title company ready to go as well.

Good luck!