|
For Sale By Owner (FSBO) and MLSLI
| Posted By |
Message |
RellyWife
LIF Infant
Member since 2/10 82 total posts
Name:
|
For Sale By Owner (FSBO) and MLSLI
Does anyone know if a For Sale By Owner (FSBO) can get a MLSLI number and how to go about doing so? Is there a cost involved?
TIA!
|
Posted 3/16/13 7:31 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
|
|
For Sale By Owner (FSBO) and MLSLI
Yes, FSBO can get an MLS number using what is called a flat fee listing. One that I see a lot here on Long Island is Housepad. There is a cost involved. I'm not sure how much exactly though.
|
| Posted 3/16/13 8:05 PM |
| |
|
|
|
Re: For Sale By Owner (FSBO) and MLSLI
Yes, Lori is correct that there are companies that will list a home on MLS for a flat fee. Click It is another one I am seeing in my area.
But aside from the flat fee, keep in mind that when a seller puts a home on MLS, they need to also offer out compensation to agents who will bring the buyers (selling agents). If they don't, where's the incentive for an agent to show the home? And most serious buyers are working with agents.
Most of the time, I see owners listed with the flat fee companies offering out 2% to a buyer's agent or broker's agent. So there is a cost beyond the flat fee for the listing on MLS itself.
And if a seller choose the flat fee route and pays 2% of proceeds out plus the flat fee to the company, then the he/she still has to do ALL of the work of the showings, open houses, negotiations, inspections, etc. The flat fee company does not provide any other service beyond listing.
So doing a cost-benefit analysis, I find it hard to see how these arrangements really benefit the seller. I think a seller with a full-service listing agent who has a full marketing plan and is an advocate for the seller throughout the process is much more likely to get a higher price for their home that would more than offset the few % points they save by using a flat fee service.
For example - If I was a seller with a home listed at $399,000, I would rather get $390K and pay 5% in fees -- netting $370,500 and having someone do all the work for me -- than get $375,000 and pay 2%, netting $367,500 and having to spend lots of time handling every aspect of the transaction myself.
|
| Posted 3/17/13 5:05 PM |
| |
|
LIMomma
LIF Adolescent
Member since 6/12 523 total posts
Name:
Momma
|
Re: For Sale By Owner (FSBO) and MLSLI
Posted by Century 21 Dallow - Christine Braun
So doing a cost-benefit analysis, I find it hard to see how these arrangements really benefit the seller. I think a seller with a full-service listing agent who has a full marketing plan and is an advocate for the seller throughout the process is much more likely to get a higher price for their home that would more than offset the few % points they save by using a flat fee service.
For example - If I was a seller with a home listed at $399,000, I would rather get $390K and pay 5% in fees -- netting $370,500 and having someone do all the work for me -- than get $375,000 and pay 2%, netting $367,500 and having to spend lots of time handling every aspect of the transaction myself.
I find this answer to be pretty jaded, a FSBO CAN tell a rea that they will not sign a one time show contract, they don't have to pay commission to them, and they can still sell their house in the example above for $399K. Either way they would need an attorney, just in a true FSBO you cut out the jaded math problem listed above. The MLS fee was last time I checked around 275 they usually hook you up with a broker to go through their license, you pay more for pictures,and if you choose you can put a broker fee on the MLS listing...whatever you do everything is negotiable.
|
| Posted 3/17/13 11:38 PM |
| |
|
|
|
Re: For Sale By Owner (FSBO) and MLSLI
Posted by LIMomma
Posted by Century 21 Dallow - Christine Braun
So doing a cost-benefit analysis, I find it hard to see how these arrangements really benefit the seller. I think a seller with a full-service listing agent who has a full marketing plan and is an advocate for the seller throughout the process is much more likely to get a higher price for their home that would more than offset the few % points they save by using a flat fee service.
For example - If I was a seller with a home listed at $399,000, I would rather get $390K and pay 5% in fees -- netting $370,500 and having someone do all the work for me -- than get $375,000 and pay 2%, netting $367,500 and having to spend lots of time handling every aspect of the transaction myself.
I find this answer to be pretty jaded, a FSBO CAN tell a rea that they will not sign a one time show contract, they don't have to pay commission to them, and they can still sell their house in the example above for $399K. Either way they would need an attorney, just in a true FSBO you cut out the jaded math problem listed above. The MLS fee was last time I checked around 275 they usually hook you up with a broker to go through their license, you pay more for pictures,and if you choose you can put a broker fee on the MLS listing...whatever you do everything is negotiable.
I was just giving an example with the math of how it could work out to not result in much savings (or any savings) for a FSBO, but mean a lot more work - My general point is just that a lot of sellers get hung up on how much the fee is, but what the focus should be on is how much they are netting in their pocket.
But the bottom line is, if you want to put your home on MLS, and you want agents to show it to their buyers, the agents will need to be compensated. If you offer out no compensation to any agent - then a buyer's agent (who is representing a buyer) can still show the house and sell it, but he/she will build their commission into the sale price. And that commission will be 2% or 3% or whatever. Most FSBOs - even if not on MLS - will agree/offer to pay compensation (usually 2%) to a selling agent who is bringing a buyer.
No agent is going to sell the house without getting paid, and even if the buyer is the one paying, the buyers usually build it into the proceeds versus paying out of pocket. A seller can say they won't pay, but then they likely won't be able to sell to anyone who is using an agent. And if they do wind up paying a commission to one agent, then they haven't avoided the real estate fee AND they have no representation throughout the process.
And my point is that most FSBOs will sell for less than a listed home will sell for. Aside from the marketing/exposure issue, most successful FSBO's do not sell in an arms'-length transaction, but rather sell to family members, friends, neighbors. So they don't get as high of a price as they would if they were selling their home arms' length. And the majority of people who try to go the FSBO route wind up using an agent to get the home sold.
Yes, the seller needs an attorney in either scenario. But an attorney isn't going to advise a seller on price and negotiate with the buyer's agent, or be there at the home inspection, and an attorney won't coordinate with the appraiser and provide accurate comps, etc. The attorney usually never sees the house at all. He/she prepares the contract and handles the closing. He or she is not going to manage and assist throughout the entire transaction the way a listing agent would (or should).
I am not trying to give "jaded" responses. But just providing a different perspective and trying to raise some points that someone considering going the FSBO route may not have thought about. Obviously, my perspective is shaped by the fact that I am a real estate agent and an attorney, but I always try to give honest advice that may help people.
Of course, there can be successful FSBO, and if the original poster or anyone else decides to go that route, I wish them luck!
|
| Posted 3/18/13 11:52 AM |
| |
|
LIMomma
LIF Adolescent
Member since 6/12 523 total posts
Name:
Momma
|
Re: For Sale By Owner (FSBO) and MLSLI
BUT in your example you lower the value of the FSBO, you made the assumption that simply because this is a question about FSBO that they can not be as successful. MANY people sell AT asking price (with or without accepting the solicitation from a buyers agent), this question wasn't about bashing a FSBO, it was simply CAN you pay a fee for MSL. You took the opportunity to express a very one sided opinion, to a question that wasn't even asked.
|
| Posted 3/18/13 6:02 PM |
| |
|
|
|
Re: For Sale By Owner (FSBO) and MLSLI
To clarify - My example was based on my experience in the real estate industry and on statistics about FSBO sale prices v. sale prices for homes that are listed with an agent. And from what I've seen -- both in statistics (which are national) and by looking at sales data for Long Island (as a realtor, you can look at private deed transfers, meaning people who sold without an agent, as well as MLS sales), the FSBO homes sell for less.
And that is usually attributed to the fact that, in most cases, FSBO sales aren't arms' length transactions. That's not to say that someone can't sell their house on their own and get full asking. Obviously, they could! But there are a lot of factors that getting top dollar for a home -- a lot of FSBOs (not ALL) don't have access to the info they need to price the house right, for example, or the resources to widely market the home and attract the largest buyer pool.
The OP asked about costs entailed with companies who will list a home on MLS for a FSBO for a flat fee. And my answer pointed out that there is a cost beyond the flat fee. The majority of people who utilize those services DO offer out compensation to cooperating agents. It's right there on the listing -- not the consumer version, but the broker version that real estate agents see when looking on MLS. I come across listings from companies like Click It and Housepad during the course of my business, and generally, the sellers are offering out 2% to agents. So it's important for anyone considering using those companies to be aware of that additional (potential) cost.
My post was only meant to provide this information and my opinion, based on my experience. If others disagree and have met with success by using a flat-fee service and not offering compensation to agents, more power to them!
But my post was not meant to "bash" anyone, and if it read that way, then I apologize. I don't think there's ever a need to bash anyone on a message board of this type! 
|
| Posted 3/18/13 7:17 PM |
| |
|
Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
|
Re: For Sale By Owner (FSBO) and MLSLI
Posted by LIMomma
BUT in your example you lower the value of the FSBO, you made the assumption that simply because this is a question about FSBO that they can not be as successful. MANY people sell AT asking price (with or without accepting the solicitation from a buyers agent), this question wasn't about bashing a FSBO, it was simply CAN you pay a fee for MSL. You took the opportunity to express a very one sided opinion, to a question that wasn't even asked.
We put our condo on the market FSBO, and I can tell you from direct experience, the offers you get FSBO are less than what you get through an agent. The buyers know you aren't paying a commission, and they build that into the price they offer you. Period.
We then listed with an agent, and we got full asking price at the first open house. Even paying an agent, we netted about $2k more.
So while FSBO seems like it will save you a ton, in many cases it won't. Financially you will most likely net close, AND you are doing all the work. That is the point Christine was trying to make.
IMO, she wasn't "bashing" anything, she was merely demonstrating the math.
Message edited 3/18/2013 7:28:42 PM.
|
| Posted 3/18/13 7:27 PM |
| |
|
RellyWife
LIF Infant
Member since 2/10 82 total posts
Name:
|
Re: For Sale By Owner (FSBO) and MLSLI
Posted by Lori Brewer - Daniel Gale Sotheby's International Realty
Yes, FSBO can get an MLS number using what is called a flat fee listing. One that I see a lot here on Long Island is Housepad. There is a cost involved. I'm not sure how much exactly though.
Thank you for the info!
|
| Posted 3/19/13 10:53 AM |
| |
|
RellyWife
LIF Infant
Member since 2/10 82 total posts
Name:
|
Re: For Sale By Owner (FSBO) and MLSLI
And with regards to the other posts, totally see both sides. We are trying to gather as much information (hence original question) before making a decision. We bought at a "low" point in the market and are still going to lose money, which is why we are even more acutely aware of all costs involved. Thanks for all info!
|
| Posted 3/19/13 10:56 AM |
| |
|
|
|
Re: For Sale By Owner (FSBO) and MLSLI
Posted by RellyWife
And with regards to the other posts, totally see both sides. We are trying to gather as much information (hence original question) before making a decision. We bought at a "low" point in the market and are still going to lose money, which is why we are even more acutely aware of all costs involved. Thanks for all info!
Good luck!
It's definitely tough and painful to sell at a loss. Even if you decide to try FSBO, you should see about getting a few local realtors in with you to consult on price, if you haven't already. They will meet with you as a complimentary service, and that will give you a chance to pick their brains about value (and other questions you may have) so you will be armed with more info as a FSBO.
|
| Posted 3/19/13 11:24 AM |
| |
|
Potentially Related Topics:
Currently 72451 users on the LIFamilies.com Chat
|
Long Island Bridal Shows
|
