Should I hire a realtor or sell it myself?

Question

I need some advice.

I have a luxury unit I inherited about 14 years ago in Southern California.

We have a family realtor who’s been doing work with us for years. She has skin in the game with this property as she helped sell the units when it was first built.

I recently acquired my California real estate license But have not hung out with a broker yet as I’m trying to figure out what the best path going to be. I think I’d like to get into selling commercial real estate to learn more about putting those types of deals together.

But I digress. The realtor knows I am looking to sell this property this summer and Because our relationship from the past, she is rightly assuming she should be the sole listing agent.

The retail value of the property is probably somewhere around $1.3 million. I owe three 50,000 and because of the step up, won’t have much of a tax hit.

I have an infant and a four-year-old daughter and I’m starting to get a sick stomach thinking I would give 6% commission away on this property.  ( 78k if it sells at 1.3!?!?)

How should I approach her? I know everyone says commission is negotiable, but it’s a family friend. How do I frame my dilemma to her? Could we sell it together?

I’m eager to hear what the bigger pockets hive mind has to say.

Russell Brazil · Answer

If you need to ask, then you probably dont have the experience to get it done.  Hang your license, then cobroker it with a mentor in your office.  Having your license, but no experience is actually probably more worrisome than trying to FSBO, because you will be held to a higher legal standard, but you still wont know what you are doing.  Just read a story on here on BP about a licensed agent with little experience, who wired their property funds out of the country to a scammer because they thought they were wiring it to the title company, something an experienced agent deals with all the time these scams as they are common.

Jay Hinrichs · Answer

you can just list if with brokers that charge 1k or so to put it on MLS for you then all calls are directed to you.

you will have to offer 2 to 3% to the agent that brings the buyer..

TRUE FSBO were you bring the buyer and there is no agent involved can be pretty tough..  I have never been able to do it.

I will try occasionally but end up putting it on MLS and offering the selling broker their fee..

I mean on MLS you have probably 5,000 agents working on your listing .. that's why MLS is worth the money.

Rob Hoffman · Answer

This is an opportunity to learn a lot. Join a brokerage and list the property yourself. Any broker you join should love to help you list a 1.3M property that you show up with. Once in contract hire a TC that is also a licenced agent to help you through the transaction.

Account Closed · Answer

@Drey Stockert I am not predicting how it would sell as FSBO but there are many upsides to using a realtor including cutting your time and letting them handle the annoying bits that you may not be as experienced in. As for the commission, negotiate it! On a million dollar property (at least here) I could offer something like 6% on the first 100k, 4% on the next 400k, and 3% on remainder or whatever, something like that. I know thats still a big chunk of money but its an option.

Jonathan Minerick · Answer

Keep in mind that if you list it through your own broker, there are likely going to be some fees involved due to E+O insurance, office policies, etc.

If you are looking to get the experience and make the most money, do a flat fee MLS listing (costs ~$100) and get a transaction coordinator (TC), which costs ~$400 in California.

You can still host your own open houses and get all experience you would as if you were the proper listing agent.

The TC can explain just about everything (many are brokers themselves), has access to all the paperwork, and it would be a good test to see if you want to work together in the future.

Mark Pedroza · Answer

The time it took you for you to study, maybe cram and sit for your exam, you should find that broker-sponsor.

If you try to list your property yourself it would be considerd a conflift of interest according to C.A.R. wheras your broker would be more than happy yo assist you..

If you do go the way of FSBO and advertise on Craigslist beware of scammers..

Drey S. · Answer

@MarkPedroza - Precisely. I guess my question is - I'm going to hang my license somewhere at some point this year. We have many brokerages close by that I have been invited to join.  Should this be my first deal? Or should I just sit back and not learn anything and let this realtor do all the work and get all the money?

@PatL - Do you offer a total of 3% for seller and buyer agents to split? I guess I could just hardline that I can only give 4% and let them work out what that split will be.

@Suzy Capezzuto- I probably would try and sell it myself as FSBO - but as a licensed agent with a broker helping me through my first sale (it just happens to be my own property.) I LOVE the idea of % stacking. THANK YOU.   Or maybe I could come up with a hardline number I'm not willing to pay more than?  I clearly need to learn more about negotiation.

Matt Groth · Answer

I agree to negotiate. If you are an agent, I'm assuming you feel that you will be providing value to the people you will be serving in the future,correct? It is very difficult to sell things you dont believe in. If you dont think a long time family friend will serve your best interests,  I wonder how you will convey your value to future clients. As I type, this isn't as combative as it may sound, just something to think about. Agents always seem expensive when it sells quick. I've done Fsbo a few times, and it worked well. The times I have used agents, they earned their money.

Pat L. · Answer

We always sell FSBO, but because we have worked with several agents/friends over the years, we offer 3% if they actively sell it.

Mark Pedroza · Answer

You wouldn't be able able to sell it together as you have no NBA (No Broker Affiliation). You would only receive the sale(s) proceeds.

Should I hire a realtor or sell it myself?

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