Advice doing FSBO in CO

[Sean Shirvan]

Hello everyone, I've got a rehabbed house in Aurora, Colorado where the margins are a bit tight and so I'm considering doing a FSBO and have a few questions:

Do I require an attorney or can the title company perform the closing services?

Is it worth paying a brokerage to list the property on the MLS while I perform the marketing and showings?

Does it matter much which title company I use?

Any other marketing tips or other advice for a newbie? I've never done a FSBO before.

Much appreciated!

[Dan Mackin]

In CO title can perform the closing services. They won't write contracts for you though. That will either have to come from a buyer's agent if there is one or you will need to pay someone to draft them up if you find an unrepresented buyer. If you do end up working with someone who is represented then expect the 2.8% commission which is average.

For marketing it you can get an agent to post it on the MLS, but their fee all depends on who you find to do it.

Title matters at least in the terms of getting someone who is competent and can deal with your questions. If you're a newbie then there is a good likelihood you'll have more questions than the normal person would so make sure whoever you choose seems like they're patient with you and not rushed. Title fees around Denver usually start around $300 and go up.

For marketing make sure you do it across all the sites (Craigs, Zillow, Trulia, even Facebook, etc)

Be prepared for seemingly every agent on the planet calling you since you're a FSBO. That is the bread and butter for a lot of agents so they just inundate FSBO sellers trying to represent them. For showings it would probably be easiest for you to do bulk showings. It will keep your interruptions low. Also be aware that your understanding of the CO real estate contracts will come into play here. There's more to a desirable offer than just the price they're paying. With any flip the holding costs can eat away at your profit. If you get a bad offer that puts you back on the market after a few weeks then you're just going to be losing more cash in the end.

Feel free to ask more questions if you have them.