I have 2 evictions pending. One of them will be re-rented and the other one (3/1) I am considering put a For Sale sign on. My asking price will be in the range of $40-$50,000.

Now, if you were planning on selling a house in the above price range,...would you choose For Sale by Owner (FSBO) or contact a local realty agent ?

How would you choose a realty agent that can do more than just open the front door? A good RE agent knows 'when to talk' and 'when to shut-up',...where do you find these rare agents?

WMH,

Realty agents have to qualify buyers too,..don't they?

Another decision is whether to market to Investors or First Time homeowners. My house would make an ideal 'starter house'.

When my parents were selling one of our old homes so that my dad could go back to school in another state, there were, like, 500 houses for sale in our subdivision, and about 80 that had our exact floor plan. I remember my Mom hosted an open house and invited all the real estate agents to come, and she was able to chat with them, and ultimately picked one with an awesome record for sales who was really sharp. (This was back in the mid-80's-- I don't know if this is still done?) That agent was able to get our house sold in no time at all. So that would be one example of a situation where a real estate agent would be helpful: making your place stand out in the middle of hundreds of other opportunities in the same size/price range in your geographic area.

Frank,

Down here, when a house lists for $50K or less, the 6% RE commission does not work. Most realtors use a flat fee instead,...usually around $2,000.00 which is negotiable of course.

Deanna,

My house is in the 'humble category'. It has VCT floors in all rooms but it does have a new roof and Central Heat/Air.

I would try FSBO first for about 3 months. Do the whole signs, FB ads, craigslist, etc.

Tim,

NE,

Is this how you sell your flips,...flat fee MLS listings?

Fsbo seller gets on the mls with the flat fee listing service. I pay $200 to list a house and fill out the same exact paperwork as I would with a regular realtor.

Interested buyers or realtors call the number or email and it gets forwarded to me. Which I like, because I know the activity level.

I've sold most of my new homes by doing the flat fee listing for $149, check your market, the rates vary.

I consider myself the listing agent by providing the listing on the MLS, and then the selling agent shows the house (lock box and they have the code), they do the contract, etc. for their 3%.

Works well for me.

I would try the flat fee listing.

I would also get a separate phone number to use for it - even if just a pre-paid for a few months. Set it up with a voicemail message thanking them for calling, and asking callers to email questions to Roy@ALInvestments. State that no rent to own or owner finance offers will be considered.

Send a flyer around to the local real estate agents offering a flat fee commission if they have a buyer who makes an offer and closes the purchase on the home.

Get a lock-box for the key, and provide the code to agents and qualified buyers (screen independent buyers via email).

Stage the home and take good photos as soon as it is emptied, cleaned and made ready. After a week or two of being staged, you can remove the furniture.

Hold a couple of open houses - including one mid-week in the morning that you advertise to agents (you can share the lock box code with agents at the open house), and one on a weekend afternoon that you advertise to the public.

Sometimes the flat fee listing service will, for an additional fee to the seller, fill out a contract for a buyer.

Make sure the home is move-in ready, and ready to go for the tax refund crowd.

FSBO. Tell the interested persons that they need to be prequalified at a bank or mortgage broker.

I once sold a house FSBO while we were fixing a rental house up and I had stuck a FSBO sign in the front window. We were actually changing a ceiling light in the dining room when a young couple stopped by. I showed the house and chatted up the couple. Came back 15 minutes to find my husband on the ladder nearly passed out from holding up the half installed light!

Thanks Barb (MO) for those great tips! You have motivated me to sell FSBO. I am getting excited now.

Since 2006, I have always been the 'buyer'. Now, I want the experience of being the 'seller'. Yes, I hope to attract one of those tax refund buyers.

I would put appliances in. Many of the Class C crowd don't have their own. You can put in good used appliances and sell the appliances with the home for more than without. That market doesn't have an extra $1500 for the appliances.

If you stage it with good used furniture, you might even have someone like it as-is with the furniture. You can advertise it as "Just bring your suitcase and dishes" to someone who currently is furnishing from Rent-A-Center.

Again, talk to that mortgage broker. They can give you a quote of what the payment might be. For example, if the home is contracted for $52K, and they have $2600 (5%) for the down payment plus another $1500 in closing costs, they only need about $4300 cash. That includes the insurance and pre-paid interest. At a rate of 6% (since they are less qualified), their payment including PMI and escrow is less than $425. Likely less than what you rent it for.

Ken,

Thanks for that great information too!! For $50K, I will hold anyone's hand, even the gays. LOL.

Believe me, I know the mentality of Class C tenants and I would assume Class C buyers are just what you describe. Just like auto dealers in my town, they don't advertise the $50K list price, just the amount down and monthly payment!

I will be visiting some mortgage brokers too. I hope I can find some that are hungry.

From what I recall "pre-qualified" is done on the back of a bar napkin. Pre approved is what comes on a lenders letterhead.

Interesting Situation has developed.

I rode by this house about an hour ago. It appears this tenant has already moved out (the barking dog is gone). I called the power company and learned the power has been shut-off for non-payment which means they have not paid a power bill in at least 60 days.

My 24 hour 'Notice to Enter' sign will be posted within one hour. I will be inside this house on Wednesday to confirm the move-out. If empty, an Abandonment notice will be posted.

The problem with hiring a full-service agent for a $50,000 house is the lack of money the agent has to promote the house. The agent is only going to receive probably $500-$1000 for this house after all the work was done. Take away $100 for photos, and there's very little left for the agent to market the house and profit from it. You're probably not going to find a "go-getter" for a $1000 profit unless you find a new agent trying to make a name for themselves.

As a Realtor I would normally recommend using a Realtor for a multitude of reasons. While many apply to homeowners some are universal.

The first and foremost is pricing it to sell. Homeowners always think their home is worth more than a buyer. They don't consider all the variables.

More importantly, they don't understand that you can agree to any price you want but it must appraise, or you will be forced to negotiate the price or move on

Realtors will insist that the buyer be pre-approved which is very different than pre-qualified

Only 9% of FSBO listings are sold as FSBO

Most buyers, especially first-time buyers with limited funds start out looking online but 98% will use a buyer’s agent (88% of move up buyers use a realtor) once they know what they want. As an FYI I won't sell to an unrepresented buyer because of the liability.

It is much more than listing it on MLS. Most brokers search MLS for specific amenities. MLS can be thousands of property listings You must market the property to Realtors via DM Flyers or open houses

A Realtor can take one look at your property and tell you what you need to do to get it to sell quickly. They know what buyers are looking for.

Realtors generally avoid showing FSBO since they are rarely offered compensation which is a big mistake since they control the market. If perchance a Realtor does bring you a buyer, they are obligated to represent the seller as well as the buyer which is double the work a half the cost

Three months is an ETERNITY to be on the MLS especially in an active market. Buyers agents are acutely aware of DOM so the longer it sits the lower the offer.

Here is my recommendation:

*Before you do anything get a home inspection to uncover any issue that the buyers home inspector will find. Keep a copy of it and do an attachment that shows which items were corrected. Better yet you might want to ask the cost for the HI to reinspect after the repairs, so you have that available for prospective buyers.

* You might want to consider paying a "consultation fee for a local agent to look at your house and give you some ideas based on what is selling in your price range and local area

*Use of the FSBO MLS listing sites. I recommend byownerflatfeemls.com. Besides the MLS it includes the major sites (Zillow, Realtor, etc.) plus on every local real estate agency sites. They provide seller disclosure forms and you get to select the buyer’s agent comm. rate. I suggest 2-2.5%

*I would give it 6 weeks. if you aren't getting traffic you need to bite the bullet and hire someone

Beyond the how to sell as a FSBO the following things are important

staging is unnecessary at your price point

it must be spotless!!!

New caulking makes everything look fresh plus it says you cared about the minute details

everything must function properly

curb appeal is critical. overseed if needed and add some color with plants/flowers

new kitchen appliances are good but they just need to be a basic brand

W/D do not need to be new. Look on NEXTDOOR in the better neighborhoods. I just bought a set of for a property that sold for $2,300 2 years ago for $400. You may want to look for kitchen appliances there. They always have high end for sale when people are remodeling but only buy sets since you want them to match

Get a lockbox. Buyers agents do not want the seller present it makes buyers uncomfortable since they can't talk freely around you. If a direct buyer wants to see it then do not follow them around. Let them in and step outside. Just let them know you're there if they have any questions.

Have a list of all improvements you made to the property and when and leave it on the kitchen counter along with a printed flyer that lists the features/amenities and has some pictures with your contact info.

Have a sign-in sheet for Buyer agents and direct buyers to complete: their name, phone, email, firm name date and time. Don't forget to have copies of the state and federal disclosures

I may have you confused but if I recall correctly you are not tech oriented. Pictures are critical. A real estate photographer will only cost you at most $150. Use google to find some in your area. They will have their portfolio online along with pricing. For an extra few dollars they will upload your pictures to the MLS and re websites

Good luck!

Thanks NC investor - for that really great information- it wore me out just reading it! You do seem to know what you are talking about though.

One of the problems I have with RE agents is prejudice,...when they know it has been a rental house for 5 years,...their assumptions about the house lead quickly to "how about selling it to another investor for some quick cash"? No, I want you to market this house to a 1st time home buyer so that I can get full retail out of it. If I just wanted to sell to another investor, why would I need you (agent) involved in this?

Plus, most of the RE agents in my town own & manage their own stable of rental properties. In one sense, they are my competitors. Could be too close for comfort here?

Today I learned the tenant (eviction pending) in this house has skipped out. I can start on this house tomorrow.

We sold our property by ourselves.

Don (PA)

PMH (TX):

That's why I made the suggestions for you to do this on your own. Two things that drove that decision is the price point and the fact you are an investor with more knowledge than the average FSBO. But I still recommend that you give yourself a limited realistic window. If you don't get the calls or interest level in the first 6 weeks you might want to reconsider.

ROY:

The agent you spoke to is either stupid or short sighted. Investors in my market almost all use brokers for buying and selling so they are passing up on great steady clients.

And I agree with you about not selling to another investor. I am about to revamp my portfolio so I'm selling a number of properties and I am unwilling to discount the properties for convenience. Perhaps if I wasn't a broker I'd feel differently but I am in a low inventory high demand market so it just makes sense to sell on the open market for full price. Besides I love selling..

As for how to find a good broker ask around and read former customer reviews. Another good source is realtor.com look at the section find realtor. It will show you their years of experience , price range, neighborhoods they sell in, number of recent sales and listings.

Zillow has a similar site with star ratings and shows the number of sales and current listings.

If you find some that you think you would be interested in call them and ask for a meeting. Talk to at least 2-3. Most sellers jump at the one that gives them the highest listing price just to get the contract. You want the one that is realistic and shows you the comps to support the price. And it is ok to ask them for references and some of those should be for properties similar to yours.