Investor · Toledo, OH · Member since 2020 · 88 posts · 101 votes
My parents have decided to sell their condo in Orman Beach, FL.
They are pretty adamant that they want to offer it up as a fsbo - and think “a sign in front” is enough marketing.
I’m in Ohio, so not sure if the specifics in FL are different.
1.) Is there a way for them to add the property to the MLS without involving a realtor (or seller's agent?)
2.) What documents do they need? I k is in Ohio we have a disclosure doc and a lead paint doc, but unsure what’s needed for FL.
3.) If approached by a buyer with an agent, is there a way to put any buyer’s agent commissions back on the buyer? (Or do they simply need to state, “will not pay commissions to buyer’s agent?” *kind of a noobish question. I think they’d be better off with an agent but they are doing whatever they can to avoid the realtor commissions.
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
4y
1. You can pay some agents a flat fee like $500 to 1% to just list it on the MLS and have it read "contact owner 123-456-7890". That's the best option for most eyes. Second is list it on Zillow and Realtor FSBO.
2. Unsure on the docs there, I'd try to lean on the incoming buyers agent to handle that.
3. They should pay a buyers agent commission otherwise no one is going to buy it, just price in the 3% to the price. They really should just add 6% to what they want to net and have a realtor list it for them for top dollar and not have to worry about it. Just my opinion....the market is hot and ripe for sellers.
1) You can do a "flat fee MLS" listing, which is basically paying an agent for the single service of listing the home on the MLS. Cost is $100-$300. Google "Flat fee MLS" + the city and you'll find many providers. Things to look for:
a. The listing should be on the local MLS
You can always check the "data source" noted on realtor.com to see what MLS' are used in a given area.
b. Make sure there are free changes to the listing
Some services offer a low listing fee, but charge $25 a change.
c. Number of photos on MLS
Make sure you get at least 12. Again some services offer an attractive listing price, but it is for 1 or 6 photos.
d. Length of listing
Make sure you get at least 6 months with option to cancel anytime.
e. Fine print / requirement to use settlement services
Make sure you read the listing agreement and there is no requirement to use the listing agents preferred escrow, etc.
f. Be Careful With Referral Services
Many providers of this service are actually referring you off to another broker. Only deal directly with the broker that will be doing the listing.
2) The listing agent can typically provide you the disclosures (though not the contracts). A google search will typically tell you which disclosures are required. You can also use a transaction coordinator and for ~$400 just have them take care of all of this (this is what I'd recommend).
3) When you list using the flat fee MLS provider, you will get the option to state the amount of commission you are offering to buyer agents. MLS' allow you to list as low as $1 (though it's unlikely an agent would show a property with that offer, understandably). Since many buyers are not open to the idea of paying the commission out of their pocket, the sellers will typically do better just building the buyer agent commission into the listing price. But if the seller was insistent on not offering a buyer agent commission ($1 offer), they could still do the flat fee MLS listing and get syndication to all the major websites. With the competitiveness of the market, buyers do approach listing agents directly, so this is working for some of our sellers (though again, I think they'd often be in better shape with a buyer agent commission offer).
Investor · Texas & Oklahoma · Member since 2020 · 67 posts · 38 votes
4y
@Christopher Abele, if your parents are stubborn like mine are, I'd say let them try the sign in front first, but make sure they are firm on their price. Explain to them that a lot of people will take fsbo to mean "I can talk them down and get a good deal".
As much as I hate to admit it, listing with a realtor does net you more money on average, so let them try with the sign, and if/when it doesn't work out for the price they want, ask them to try listing with a realtor.
Also, putting the listing on zillow is not too difficult. No reason to put it on the MLS unless they want to chop off that 3% for the buyer's side, and at that point they should just get their own realtor to handle everything for them.
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews