Here is the essence of a method I have successfully used several times recently to get the best opportunity to sell a property on my own - at first - and, ONLY LATER, involve a professional real estate agent:

The core of the approach is based, of course, on the fact that nowadays YOU yourself can quite easily identify or "skim" a good proportion of the potential buyers out there, via using of all of the popular methods of advertising, such as Craigslist etc.....

After 30 days, I will only list an unsold property with an agent who is willing to respect my prior right to sell to my contacts....

….Through my own attorney I should add

I am not a real estate agent, and I don’t play one on TV. If you fully disclose that you marketed the property for the previous XX days using YY methods, and here are the list of contacts I developed during that time, and if the property is sold to one of them instead of getting 6% of the sale price you get nothing, and the R.E. Agent signs on, more power to you.

I've never had a whole list of buyers excluded but I've often had one and I've never had an agent so much as blink an eye about putting that into a listing.

I have to say that none of my buyers excluded have ever come through. If they don't commit during that first 30 days and go into escrow, they aren't really buying.

They sure are hungry (and a bit perturbed) by me here in NYC.

I should have added that - via the above method - 3 out of the last 6 properties I sold did not involve paying any commission at all to an active real estate agent. However, re: my last sale, I did pay a retired agent 700 bux to organize and set up a one day open-house; wherein he showed it and took all bids on the property 5 days later. The sellers bank and my lawyer will be closing on that sweet deal next week.

Thanks for your input

Hey Ally

Would you mind telling us where you got the most bang from the $1000 you spent on advertising?

Thanks

If you hire a re agent they are the listing agent. Anything is negotiable between you and your listing agent.

Your problem is if "your contact" brings a buyers agent with them this time. Your re agent has most likely listed your property in the local MLS which requires them to pay a cooperating agent...buyers agent.

There are numerous issues that can emerge.

If your contact comes back without a buyers agent many states will require your agent to act as a dual agent. Neither party wins in that scenario.

Some states no longer allow dual agency since they have finally acknowledged what a sham it really is. So your contact would be required to find a buyers agent.

In the scenario of your contact bringing in a buyer agent it comes down to "procuring cause" and will be based on how long between the initial contact with you and if the contact has a contract with the buyers agent (a buyer's agent must have a contract before they can provide an offer to purchase).

I do understand your desire to sell as a FSBO as your first option. Another option is to advertise that you will pay a buyer's agent a commission if they sell it to one of their clients. You could do this by emailing a flyer to numerous agents in your local area. The only reason buyers agent won't show a FSBO is that the majority of FSBO's refuse to pay a commission until their property sits on the market and they have to resort to an agent.

Here are some interesting statistics from 5/18...consider them food for thought:

51% of home buyers found their home on the internet

89% of homebuyers used a re agent for buying their home(that includes the 51% who found the home on the internet)

FSBO homes sold for 16% less than the same house in the same subdivision as those sold by a re agent.

FSBO homes stay on the market 3 times longer than a home sold by a re agent.

I have to laugh every time I see that statistic: FSBO home sold for 16 percent less than by agent. Why would I ever want to purchase through an agent then?

You might not need an agent but the average home buyer is clueless about all of the steps involved in buying and the FSBO isn't any more knowledgeable than the buyer.

There are few things that can survive closing but failure to disclose and/or misrepresentation top the list and an unrepresented seller coupled with an unrepresented buyer is a recipe for disaster that usually ends up in costly litigation that may well exceed the 16% they thought they had saved.

Another reason most FSBO homes sell for less is the homes are not in comparable condition as those sold with input from an agent. FSBO's choose to sell their homes for one reason so they can pocket more money. They sure don't want to spend a lot on repairs let alone on upgrades.

As an investor, making repairs isn't an obstacle for you but the majority of today's home buyers not only want a move in ready home they want it in pristine condition.