Paging Cumberland Re FSBO

Hi Cumberland,

Any special FSBO tips? I'm going to give it a limited shot. I'm bringing my boss through first. I've just read a good book on FSBO. In a couple weeks, I'll have this place ready to show. I've got a real estate lawyer lined up for the offer to purchase docs, disclosure docs, title stuff, etc.

I've got a pretty good read on the market b/c I have past info. and am going to get current info. on units in our complex that our currently on the market.

I'm not going to get greedy but rather am going to try to make it move quickly by being below other properties in the neighborhood (esp. those using realtors). Want to pass some of the savings onto the buyer rather than getting greedy and have it stall.

I've got a limited window so will set a timeframe and call in a realtor if I need to. In this area, the realtor should be able to move our place in a week or so.

Any tips from a pro such as yourself? I'm going to clear out this place (purging and using a storage shed).

[Cumberland]

Cracking my knuckles to get started.....

Make sure they have a good faith estimate to show you and call their bank/mortgage company if they want to put a contract on the house.

Have a sales contract ready to go, dont let the big fish get away bc you dont have one.

Fill out a sales disclosure to avoid any snags.

Do your own market analysis via zillow.com and moveup.com and whatever the tax appraiser's site is in your county.

Have an open house with wine and cheese, good smelling candles etc. Time the open house so there are other open houses going on in your neighborhood (Sunday from 2-4 here).

Let the potential buyers browse on their own through the house. Tell them you will wait wherever if they have any questions.

If you have the $ have the house appraised and inspected prior to putting it on the market. That way you wont get surprised by the fact that both your bathrooms are rotten and will cost 17K to fix.

Tell all the realtors that call you claiming to have lots of buyers interested in the house to produce the buyers or take a hike.

Get rid of as much crap as possible. Make the closets look empty and the cabinets look completely organized. Buy nice new tea towels and bathroom hand towels. Take everything off your bathroom and kitchen counters.

Both times we did the sales contract over a friendly drink. It was easier to do the negotiating right there, rather than have them submit a contract, us look it over, get back to them 24 hours later etc.

Try to have a realtor friend and lawyer friend you can ask questions of.

I hope this was helpful. Good luck!

Very helpful. The market analysis links are very helpful. Thanks. Did you ever consider a brief listing with a realtor. I.E. if a realtor could produce, set a limited commission and close the deal with the realtor's clients?

Per inspection, I kind of know some stuff that we chose not to fix (no biggees) from our purchase. Bank appraisals seem to be way behind market rates ... good for us and for potential buyers in terms of property taxes but not so helpful in terms of thinking about pricing.

I like the free roam idea too. I'll be getting all the valuables stowed away ... but you're right about folks not wanting to be tailed around the house by "that greedy" seller trying to push a sale.

The lawyer I'm using actually closed on this place four years ago and his specialty is real estate. I've been very clear with him about what kind of help I'll get for what price.

P.S. Did you find short, catchy newspaper ads to be helpful?

[Cumberland]

I have an irrational distrust of people who work on commission so I did not consider using a realtor.

I read some book where it said that newspaper ads were not cost effective. It was like 150 bucks a week here so I didnt place one. I put up a bunch of signs on the bigger thoroughfares near our house, and put an ad in the thrifty nickel too. I put signs up at the hospital. I would have done craigslist but we didnt have it at the time. I would have sent out a flyer with the new matchees packet if it had been around that time.

At the university, I have a couple of folks (boss plus a few others) that want looks prior to me actively putting it on the market. After that, I have the potential to find some residents, etc. too.

Any tips on the boss?

I have a good buddy at work who is my surrogate grandfather. He got licensed in real estate for fun (in addition to his profession), bought tons of properties -- rented, sold, invested in a long-term real estate development deal, etc. He's my informal advisor. He's enjoying chatting over coffee since it makes him feel he's back in the game.

When I told him I worried about the boss (as a potential buyer) since he knew my time constraints etc., he said "information is not a problem, but influence is."

I'm not too worried about influence. I feel strong enough about the property that he won't get it for a song. (Boss) is already starting some funny gamesmanship about softening market, etc. from his newspaper reading.

National trends don't (necessarily) have much to do with this market. He's actually funny because I tend to think that anyone who is so sure from the outset that he's two steps ahead of everyone else might find out he's actually a step behind me.

Actually, boss' daughter(s) will be the thing. As much as he thinks he's an investor, it'll be a shelter purchase based on their opinions. So, if they don't like it, he'll pass it up thinking he's a saavy investor when really he might be passing up a great investment.

re: the newspaper ad. I had heard the same thing as Cumberland. That was one of my negotiating points in getting the commission down -- I told her things I didn't want her to do and the ad was one of them.

ETA: I'm developing an irrational distrust of the commission as well. I don't know that I feel like doing a FSBO but it drives me mad to know a realtor would get xx% more on this house just by virtue of us having lived in it for 3 years. If anything, it is easier to sell now than it was 3 years ago.

[Stella]

Yeah, I do marketing for my parent's real estate business now. We don't use the newspaper...ever. You can do single listings in The Real Estate Book and stuff like that.

And, once again, just because it's commission based doesn't make it bad. (I've never had a job that DIDN'T offer commission.)