Selling your house privately?

[Exuberant]

Hello, I am interested in opinions/advice about selling your house privately (property guys etc). I have never sold a house before but am interested in upgrading to a larger house. Is it difficult to sell through property guys? Is there a lot of paperwork and a lot of stuff to figure out? I don't want to have to pay the large commission to sell my house through a realtor, but if it is going to be extremely hard to do it privately then I understand and will do it through a realtor. Thanks ahead of time for any advice/opinions you may have.

[Gunslinger257]

It's not hard at all. All you are paying a realtor for is advertising and showing. They will claim that they are protecting your legal rights but it will be your lawyer that does that. And you have to retain a lawyer anyway.

[winged1]

I buy and sell houses privately, as well as use a Realtor when warranted. If you understand all aspects of the transaction, and want to save money by doing some or all of that work, then great, go for it. If you do not understand, which it sounds like in this case, I'd employ a Realtor. If you use the same one on both the buy and sell end, you should be able to negotiate a reasonable commission.

[steyrman]

A lot of people do not realize that under certain market conditions you can negotiate commission with most real estate agents. Last year we sold a 4300 sq' custom built executive home, overlooking a lake in a semi - rural setting near a large city in central BC. The going rate in BC was 7% on the first 100,000 and 3% on the balance, twice what they charge in Alberta. The market was slow, it was an expensive house and I got 2% across the board. At 7&3 I would have sold it myself as we have done many times in the past, but at 2% it was just a drop in the bucket and no headaches.

[HunterRed]

Originally Posted by steyrman

A lot of people do not realize that under certain market conditions you can negotiate commission with most real estate agents. Last year we sold a 4300 sq' custom built executive home, overlooking a lake in a semi - rural setting near a large city in central BC. The going rate in BC was 7% on the first 100,000 and 3% on the balance, twice what they charge in Alberta. The market was slow, it was an expensive house and I got 2% across the board. At 7&3 I would have sold it myself as we have done many times in the past, but at 2% it was just a drop in the bucket and no headaches.

Not sure how things are in Legal but in Wainwright our realtors are 7&3 and if you negotiate a lower commission they are likely less apt to show your property. Their commission on 300,000 would be a split of 13,000 or 6,500 each. On 2% best case scenario they each get 3,000. It is their businesses best interest to make available other properties unless yours is specifically requested. Something to note anyway.
A bill of sale laid out with the price and terms is all you need to take to a lawyer. They will make sure everything is above board and legal.

[yoteblaster]

It's super easy. We sold an acreage privately last year. Sold for 250k and cost just under $1000 dollars in legal fees

[Domestique]

It's easy until your house does not sell for months and the money you "saved" on commission is long gone because your unsold house is now worth less than when you started the FSBO. This is how a buyers market works.

In a strong sellers market a monkey could sell your house. The current reality with Alberta real estate is you want to sell your house ASAP once listed.

[skidderman]

Have done it a few times. Don't let the fear mongers scare you. Pretty simple.
1)Figure out the price
2)Advertise
3) Once buyer found ask for a deposit and draw up what you agreed to on paper. Both of you sign it.
4) Each takes their copy to a lawyer and thats it.

No different than selling a car. My first house I tried to sell myself was sold in 4 days. If it takes weeks or months to sell either it, needs work, is priced to high or you are not getting the word out. Com Free is another way to go.

Once tried to sell a house through real estate. The house was shown twice in 6 months. I vowed never to deal with real estate again.

[pgavey]

No problem at all selling mine, and we found lots of buyers are looking for sale by owner knowing they can get a better deal with no realators fee.My lawyer drew up the paper work for us. Don't let the fear mongers scare you.

[Trochu]

Privately and Property Guys is not the same thing. Regardless, its not that hard, but Property Guys gets the listing on MLS I believe, which in my opinion, is a major benefit.

[BigJon]

It's easy. Talk to a lawyer. Communicate with your buyer often, have they're lawyer contact yours....yada yada...I was 20 something the first time I did it and didn't think at all about the "difficulty."

[raab]

Might not be hard but you'll get more showings if you go with a realtor IMO. We just sold our place and even though it cost a lot it was worth it to have it sold. Also worth noting that when buying we didn't look at a single private sale. Not that we were opposed to going that way, it just seemed like most of the private sales were overpriced.

[Zuludog]

You can a also use Commfree and services like 2% realty. Realtors are mostly a scam, back in the day they held a monopoly as they were the only ones who could list on MLS and they were more of house "listers" than house sellers. Now with Kijiji and other places you can market your house yourself and like others have said get a lawyer to handle the paperwork. If you don't want the hassle than list with a realtor.

[Kim473]

Just don't list with a realitor first and then sell on your own after the listing is over. You will be liable for fees to the realitor still for a few months.

[player86]

If you are comfortable with strangers coming into your home who may or not be qualified to buy a home, or possible just wanting to see what valuables you have.
If you have data from all the comparable sales in your area.
If you know what all written parts of a legal real estate contract mean.
If you know what a buyers conditions is, what happens if a deal collapses, if it does not close on time,.......
If you want to make a potential buyer uncomfortable with the seller being in the home at the same time.
If you want to pay a lawyer more $.
If you really think you will end up with more money in your pocket at the end of the day assuming your time is worth nothing.

then don't use a Realtor.

[Ronji]

[QUOTE=skidderman;3061437]Have done it a few times. Don't let the fear mongers scare you. Pretty simple.
1)Figure out the price
2)Advertise
3) Once buyer found ask for a deposit and draw up what you agreed to on paper. Both of you sign it.
4) Each takes their copy to a lawyer and thats it.

No different than selling a car. My first house I tried to sell myself was sold in 4 days. If it takes weeks or months to sell either it, needs work, is priced to high or you are not getting the word out. Com Free is another way to go.

I agree with the above post.
It is so easy, its pathetic. I sold my first home in a week, and the buyer was happy as they saved money as well.
The one thing to keep in mind when showing. Only show the house when you are ready at a mutual agreed time. Ask for Identification and record all of the information.
If you go to a registration office, they have information packages on selling your own home. They contain legal bills of sale etc.
PM me if you want more advice

[RolHammer]

Originally Posted by winged1

If you understand all aspects of the transaction, and want to save money by doing some or all of that work, then great, go for it. If you do not understand, which it sounds like in this case, I'd employ a Realtor.

Originally Posted by Domestique

It's easy until your house does not sell for months and the money you "saved" on commission is long gone because your unsold house is now worth less than when you started the FSBO.

Originally Posted by player86

If you are comfortable with strangers coming into your home who may or not be qualified to buy a home, or possible just wanting to see what valuables you have.
If you have data from all the comparable sales in your area.
If you know what all written parts of a legal real estate contract mean.
If you know what a buyers conditions is, what happens if a deal collapses, if it does not close on time,.......
If you want to make a potential buyer uncomfortable with the seller being in the home at the same time.
If you really think you will end up with more money in your pocket at the end of the day assuming your time is worth nothing.

then don't use a Realtor.

The above pretty much echoes my experience. Sold our first home in Calgary FSBO. Went OK, but took a lot longer than necessary, we weren't on RLS, had limited visibility to the market, and were a magnet for tire-kickers, low-ballers, not-qualifieds and people looking to take advantage of us. At the end of it, because there wasn't a realtor's fee involved, it simply got negotiated off of the table and we didn't really save anything. (This really is the critical point I learned from the whole thing.) The entirety of the process is simple enough, but you have to do your homework to make sure you're aware of the process, and your lawyer's involvement tends to be higher than it would be otherwise.

In contrast, we sold our previous house using a realtor and I really had to ride the guy to make sure he was on task. Didn't care that he had umpteen other properties to sell, I needed mine gone and he didn't always seem on-task with that. We had a CTJ meeting as we neared the end of our contract and it finally lit a fire under him. Honestly, I think that the only thing all the open houses we held accomplished was to give him a way to connect buyers that found our house unsuitable with a different property he knew about that was 'just perfect for them'.

At the end of it, IME either way you go you need to be involved to ensure things stay on track and you need to have a certain level of education as to the process to ensure it unfolds properly and timely. When we move again, I plan on using a realtor again vs FSBO but will won't be handing the job to just anybody. I plan on interviewing a few to make sure I've got the right person for the job.

[nekred]

Originally Posted by RolHammer

The above pretty much echoes my experience. Sold our first home in Calgary FSBO. Went OK, but took a lot longer than necessary, we weren't on RLS, had limited visibility to the market, and were a magnet for tire-kickers, low-ballers, not-qualifieds and people looking to take advantage of us. At the end of it, because there wasn't a realtor's fee involved, it simply got negotiated off of the table and we didn't really save anything. (This really is the critical point I learned from the whole thing.) The entirety of the process is simple enough, but you have to do your homework to make sure you're aware of the process, and your lawyer's involvement tends to be higher than it would be otherwise.

In contrast, we sold our previous house using a realtor and I really had to ride the guy to make sure he was on task. Didn't care that he had umpteen other properties to sell, I needed mine gone and he didn't always seem on-task with that. We had a CTJ meeting as we neared the end of our contract and it finally lit a fire under him. Honestly, I think that the only thing all the open houses we held accomplished was to give him a way to connect buyers that found our house unsuitable with a different property he knew about that was 'just perfect for them'.

At the end of it, IME either way you go you need to be involved to ensure things stay on track and you need to have a certain level of education as to the process to ensure it unfolds properly and timely. When we move again, I plan on using a realtor again vs FSBO but will won't be handing the job to just anybody. I plan on interviewing a few to make sure I've got the right person for the job.

CTJ? if you use acronyms at least explain it once....Please!...

[RolHammer]

CTJ meeting='Come to Jesus meeting'

[winged1]

Originally Posted by RolHammer

The above pretty much echoes my experience. Sold our first home in Calgary FSBO. Went OK, but took a lot longer than necessary, we weren't on RLS, had limited visibility to the market, and were a magnet for tire-kickers, low-ballers, not-qualifieds and people looking to take advantage of us. At the end of it, because there wasn't a realtor's fee involved, it simply got negotiated off of the table and we didn't really save anything. (This really is the critical point I learned from the whole thing.) The entirety of the process is simple enough, but you have to do your homework to make sure you're aware of the process, and your lawyer's involvement tends to be higher than it would be otherwise.

In contrast, we sold our previous house using a realtor and I really had to ride the guy to make sure he was on task. Didn't care that he had umpteen other properties to sell, I needed mine gone and he didn't always seem on-task with that. We had a CTJ meeting as we neared the end of our contract and it finally lit a fire under him. Honestly, I think that the only thing all the open houses we held accomplished was to give him a way to connect buyers that found our house unsuitable with a different property he knew about that was 'just perfect for them'.

At the end of it, IME either way you go you need to be involved to ensure things stay on track and you need to have a certain level of education as to the process to ensure it unfolds properly and timely. When we move again, I plan on using a realtor again vs FSBO but will won't be handing the job to just anybody. I plan on interviewing a few to make sure I've got the right person for the job.

So really, the bigger consideration is that when purchasing a house, make sure it's saleable.

[nekred]

I have a very good friend hat is a realtor....

It is a valuable service and after talking with him many times he has let me know the advantages and disadvantages of each option.

Like any other profession a good realtor can save you money. People often make emotionally governed decisions when buying or selling a house and a good realtor is a great advisor and helps you through the process and maintains objectivity.

A house is a huge investment.... good to have some advice a and a guide....

What do we tell people when buying a bow... go to a reputable pro shop and get fitted etc. Sure it may be more expensive than buying a used bow online.... but worth it... but after some experience and knowledge then one can avoid certain pitfalls...

A house being such a huge investment why do it differently....

[winged1]

Notice that those that say it's easy, haven't experienced a frustrated contract. Would be nice to hear from FSBOs that have that experience. I incurred a penalty when my legal representative released funds against my direct orders. Other than some fist pounding on thier desk it wasn't big enough to legally persue. Although 'boilerplate' language makes up the body of the contract, the terms and conditions can make all the difference in respect to 'easy' execution. Language that provides a path will always be less costly compared to a lawyers option to create a path to resolution after the fact.

We blindly assume lawyers are dependable, but I've had to search for ones that execute on my behalf, rather than on thier behalf. Same as the Realtor. You want me to pay you, your going to work for me.

[Mistagin]

With Comfree there is also Offer Assist where a comfree broker handles all the negotiation and paper work (for a fee if the place sells). Something to check out if you go that route.

Note: Comfree is FSBO but they are a RE brokerage too.

We've listed with them and put our listing on hold until this cancer treatment thing I'm dealing with is finished. We'll put our place back on the active market in the spring. Why we've gone this route is because, as the market continues it's depressing downward slide up here we simply can't afford the $25,000 plus in realtor fees on top of the price we need to get. If we don't sell for a fair price in the spring / summer of 2016 we'll just ride it out for a year or 2-3 longer.

We also looked at going completely FSBO (which we are comfortable doing) so I talked to our lawyer and all the paper work can be done by them. But the price they charge is a bit more than if handled via a RE agent / brokerage.

[Domestique]

Curious if the ones that say don't listen to the fear mongers, list yourself have sold a property in the current buyers market?

I am not a Realtor, but do value what they bring to the table in times like these.

Really great point about the non-realtor "savings" being negotiated away in most FSBO deals.

I keep a close eye on the listings in my community and most FSBO I have seen the seller is usually way out to lunch with the pricing.

In Calgary sales are down 36% from this time last year, however listings are up by over 20%, perfect storm for a much larger correction. If I had to sell right now I'd price very aggressively and count my lucky stars once it sells. I know in some rural communities it is much more dire, lots more downward pricing pressure to come.

[Dean2]

I have bought and sold dozens of properties. A GREAT Realtor is worth every penny you pay him. An average realtor is okay if you have experience and know how to stay on top of him and understand the tactics they use. A mediocre to poor realtor is WAY worse than no realtor.

The highest volume sellers are not necessarily the best realtors, you can sell a lot more real estate if you can low ball the listing price of talk your seller into taking a low ball offer. Remember, if you come down 50,000, it only affects the realtors commission $1,500. It is your money they are playing with.

In the current market, get two reputable and separate independent real estate appraisers to value your home. (this will tell you pretty close what to list the house for, I usually go ten to fifteen thousand higher to start, whether you sell yourself or use a realtor). Also get a home inspection done so you don't get a nasty surprise when the buyer orders one. Make sure you fix any safety or code violation items, cosmetic fixes is a matter of cost vs return.

DO NOT TELL prospective realtors what this value came out to. Do not tell the realtor what you want to list for or what you think it should sell for. You can easily evaluate the realtor by asking him what he believes it should be listed for and what he thinks the final sale price will be. Make him show you the work up and comparables he is using. IF he has no formal work up when he shows up for the viewing appointment give him he bums rush immediately. Also ask him how many days he expects it to be on market. Is he recommending any kind of staging etc..

One of the most professional and best realtors I ever used was located in Calgary. In these tough market times he is definitely worth the price you pay for him and if I was selling property in Calgary he would have the listing.

If you sell on your own make sure you advertise it well. Get it on MLS, Kijiji, make sure you have for sale signs in front of the house, on the way into your neighbourhood and at the entrance to your street. People can't buy what they can't find.

IF they can find you and your property, and it is pristine clean, de-junked and well looked after it will move very quickly. You will not believe how filthy so many houses are that are trying to be sold. Soap and water is really cheap and makes a huge difference. The dirty ones just won't move, no matter how cheap they are.

Best of luck either way and depending on your market and how hard you are willing to work selling on your own is a reasonable option.

[SubMOA]

Its all fun and games until you find out that the house you bought from a FSBO or builder was over priced by 30K or more because thats what they "thought it was worth"... find a good realtor, save yourself headaches and buy through the same one and negotiate a good commission.

[RolHammer]

Originally Posted by winged1

So really, the bigger consideration is that when purchasing a house, make sure it's saleable.

And don't sell at Christmas. Or in a buyer's market. And make sure your pricing is realistic. And that everybody who should be working toward your benefit are doing so.

[From The Hip]

I would not use a parasitic realtor who leaches 3 grand of the first hundred grand and 7% over that for pretty much no work at all other than filling out paperwork to get the money.All realtors list all properties on the MLS system and a lot of times that realtor is not actually "showing" your home.Last time I had a realtor was to get rid of the "marital" home and all I saw was the business cards left on the kitchen counter of other "realtors" who showed the home to prospective buyers.

The entry of online services for real estate purchasing and selling is a good thing IMO.All you need is a good lawyer who if he/she is going his/her job of looking after your best interests you are OK.

I lived in the UK for 9 months and I can say the most hated proffession by the general public in the UK is Realtors or "Estate Agents" as they are called there...more loathed/hated than politicians/lawyers.Only ever heard my grandmother swear once in my lifetime and that was when I was in the YTS office trying to figure out what trade I would get into when the guy suggested I be an "Estate Agent" and my grandmother snapped and said "He is not going to be a FU*&ing estate agent!"

What do you call 1000 realtors in a soon to be scuttled ship going to the bottom of the ocean...and more specific to the bottom of the Laurentian Abyssal?......a nice start

FTH

[winged1]

Originally Posted by From The Hip

I would not use a parasitic realtor who leaches 3 grand of the first hundred grand and 7% over that for pretty much no work at all other than filling out paperwork to get the money.All realtors list all properties on the MLS system and a lot of times that realtor is not actually "showing" your home.Last time I had a realtor was to get rid of the "marital" home and all I saw was the business cards left on the kitchen counter of other "realtors" who showed the home to prospective buyers.

The entry of online services for real estate purchasing and selling is a good thing IMO.All you need is a good lawyer who if he/she is going his/her job of looking after your best interests you are OK.

I lived in the UK for 9 months and I can say the most hated proffession by the general public in the UK is Realtors or "Estate Agents" as they are called there...more loathed/hated than politicians/lawyers.Only ever heard my grandmother swear once in my lifetime and that was when I was in the YTS office trying to figure out what trade I would get into when the guy suggested I be an "Estate Agent" and my grandmother snapped and said "He is not going to be a FU*&ing estate agent!"

What do you call 1000 realtors in a soon to be scuttled ship going to the bottom of the ocean...and more specific to the bottom of the Laurentian Abyssal?......a nice start

FTH

Starving Realtors are a great resource for accessing the MLS.

[Selkirk]

Take a drive through southeast BC ... it seems like every other home that's for sale there,
is being sold by the owner (FSBO), through PropertyGuys ^.

That must make it tough on the realtors there.

Mac