How can you sell for sale by owner in NYC without a real estate agent?
The most important thing home owners need to realize when they try to sell for sale by owner in NYC is that they can’t avoid all brokers completely (How to sell for sale by owner in NYC).If you avoid all brokers, and write “no brokers please” on your FSBO web listing, you by default will turn away all buyers represented by agents (3 Reasons why NYC FSBO sellers Fail). As it turns out, buyers’ agents represent over 80% of total buyer traffic, which is not surprising considering there are 27,000 real estate agents in NYC alone.If you try to sell for sale by owner in NYC and either actively avoid or get ignored by buyers’ agents, your listing will by default be considered “off-market.” Ironically, being off-market, or ignored by the majority of buyers was never the intention of FSBO home sellers in the first place!If over 90% of home buyers start their search online, why do most buyers still choose to be represented?The fact that most buyers start their search alone on the internet these days is a prime reason why most homeowners decide to try to sell for sale by owner in NYC. Unfortunately, most are not aware of the second part of the fact, that despite this most buyers still end up submitting offers through buyers’ agents.You would think that the internet would be able to seamlessly connect buyers and sellers without a middleman, so why do buyers’ agents still exist?The reason is quite simple if you step back and think about it. Remember when we mentioned there were 27,000 real estate agents in NYC alone? Collectively, real estate agents represent the biggest salesforce on the planet, offering a customized, high-touch concierge service for free to buyers about to make a major life decision they usually have little experience with.When someone offers to send you great ideas that have just come to market, organize your open house tours for the weekend, negotiate on your behalf, schedule and take you to showings and provide you with general, market and property specific advice for free, no strings attached, it’s really hard to turn down.And keep in mind, the pitch may very well be made to you where it’s most effective, in person at a social event by someone who may even be your friend. Now perhaps it’s starting to make sense why the next savvy real estate search website funded by equally savvy venture capitalists never seem to be able to eliminate real estate agents.Unfortunately for home sellers, buyers’ agents are here to stay for the foreseeable future. Barring the invention of highly capable, robotic AI with the full range of human emotions it will be extremely difficult to eliminate buyers’ agents in the near future.Learn why buyer agents are here to stay: Is buying a house without an agent in NYC a good idea?Fortunately for home sellers looking to sell for sale by owner in NYC, the commission model will be changing, just not as drastically as one would hope. The real estate commission model is not going from 6% to 0% since we’ve established that buyers’ agents aren’t exactly in danger of being made extinct.Instead, the model will be transitioning from 6% to 3%, and with additional competition on the buyer agent commission rebate front, to effectively 1-2%. Unfortunately for the homeowner, in order to remain competitive with commissions offered in traditional for sale by agent listings, they will have to continue to offer 2-3% to buyers’ agents even if they are selling for sale by owner in NYC (Real estate buyer agent fees in NYC). If they offer less or nothing at all, inevitably buyers’ agents will steer their clients away from the listing, assuming they even decide to gamble on letting their clients see a FSBO listing.The biggest savings for those home owners trying to sell for sale by owner in NYC will be on the listing broker commission. While “flat fee MLS” listing companies have been around for decades, the next generation of listing syndication companies like Hauseit have dramatically increased the effectiveness of buyer agent engagement for FSBO home sellers. Traditional “flat fee MLS” listing companies have the same problem as a non-MLS syndication service like Postlets: everyone knows it’s a FSBO.As we’ve discussed, once it’s known that you’re really a FSBO the advantages of being in the MLS largely go away. Buyers’ agents realize they won’t be dealing with another real estate professional and begin to doubt whether the commission will honored. Moreover, the fact that the listing’s photos are all watermarked with the flat fee MLS listing company’s logo make it completely obvious even to the most unsuspecting broker. As a result, the home owner experiences no reduction in listing broker solicitation and harassment versus if she had just sold for sale by owner in NYC herself.The next generation homeowner listing company Hauseit solves this issue by discreetly listing your home under an affiliate broker who has none of the reputational issues of a traditional flat fee listing broker. The affiliate broker will typically be a full-service, traditional broker who may normally engage in full commission work. The affiliate broker will list your home in over 90 major real estate search websites like StreetEasy, Zillow, Trulia and Realtor.com and more importantly, co-broke on your behalf in your local interbroker databases (RLS for NYC) so you can get the full attention of buyers’ agents. All inquiry is automatically forwarded to you via server level forwarding rules so there is no interception or intermediation of leads.It’s very important to be on more than just one real estate search website even if you’ve managed to list on your local brokerage database. As we’ve discussed before, over 90% of home buyers start their search online by themselves. You want to have every opportunity to capture a potential unrepresented buyer so you can save on the broker commission completely.Therefore, you need more exposure than just Zillow. Hauseit makes sure you’re on all the relevant, most popular local search websites like StreetEasy and Brownstoner in addition to national ones like Zillow and Trulia.Hauseit also offers complimentary open houses, comparative market analysis, professional floor plans and real estate photography to its customers so they have a fair shot and a level playing field against a professional real estate agent’s comparable listing.
Why do real estate professionals (agents) use “for sale by owner” signs to sell their own property?
Where?I haven’t seen a FSBO sign in a very long time, and even then I never knew an Agent to do so. But hey, I suppose it could happen?
Can you market your real estate firm by putting a “For Sale” sign outside a property for which you get permission to do so by the owner yet it isn't for sale?
Whether this is legal or not usually depends on two things:The laws of the state or country you’re in.The rules of the realtors association the agent is a part of.As an example, in California you can market a home which is not yet officially for sale (meaning it hasn’t yet been listed on the MLS). But some conditions must be met:You must have a listing agreement signed with the home owner first.The broker must notify the realtors association that there will be a delay before the home is listed (usually in writing with a specific form).The home must still (eventually) be listed.In California, if you don’t list a home within a set period (days) after the listing agreement is signed, then you’re in violation of the law and you may get fined. Notifying the association that there will be a delay increases the time period before you must enter the home into the MLS, but the home is still expected to be eventually listed (unless it’s sold before it ever hits the MLS, which does sometimes happen in these cases).Zillow “Coming Soon”Another thing that hasn’t been said here yet is that marketing a home before it’s been listed is actually not that uncommon (though not necessarily with a sign in the yard). In fact Zillow has a “Coming Soon” section that’s specifically intended for this kind of pre-marketing, and some agents use this Zillow feature heavily.All that said, although some of the best agents know how to use pre-marketing like this to drive up demand (and thus the sales price of the home), the question you need to ask is if it really is worth the extra effort (including making sure you know the laws and making sure you comply with them). The agents that do best at this are successful because they have many homes in this stage all the time, having your sign up on just one or two houses may not get you enough business to make it worth the effort.
What is a real estate brokers' *real* impression of FSBO (For Sale By Owner) properties? Are the desirable for you to 'poach', are the owners considered stubborn?
I feel like in the rest of the country brokers may just generally ignore FSBO sellers as crazy people and they end up hearing crickets during their sale.However, in NYC it's completely different. You'll still get ignore by the real brokers with real buyers, however because there are 30,000 licensed brokers in the city you'll get literally hundreds of harassment phone calls from them trying to solicit you to list with them. It's literally one of the now most well known top fsbo tips to not even man your own open houses, or admit that you're the owner lest you want to be almost physically assaulted by brokers. It's unreal.The only way through these da*mn brokers is via what's called an agent assisted or agent managed FSBO in NYC. Essentially a real broker for a flat fee, no one else will tell the difference on how much you paid.
How do you write a for sale by owner house contract?
U.S. perspective:If you are smart, you don't even try to do this on your own because of the serious liabilities that can accompany the sale of a house. If you are selling without a real estate agent representing you, you should retain a lawyer to prepare the required documents.If you do this on your own, anyway, you start with form documents provided by a real estate professionals' association in your state. If there are no such documents provided by real estate professionals, then you look for documents provided by a company that supplies legal forms (which, one hopes, are customized for your state).
How can I make for sale by owner (FSBO) of our house work? In this modern era aren't real estate brokers an unnecessary expense?
In this modern era, private home sellers doing FSBO have more tools at their disposal to make it work. In fact, it is now possible to have a real estate broker just list your property on the MLS for a nominal fee without having to hire other real estate services. So you cut out the real estate agent fees but can you also sell to an individual willing to work without his own real estate agent?In an FSBO, the seller will need to price his house accurately, do his own marketing, answer and entertain any buyers, and negotiate and close the deal. In other words, the seller will need to do all the work.There’s no saying you can’t make it work but be prepared to work very hard. There are some odds stacked against you, though.For one, most home buyers prefer to have a real estate agent working for them because they don‘t want to do the hard work. They want someone to guide them, advise them, and broker the deal for them. If you aren’t willing to pay a buyer’s agent’s commission, it is almost a certainty that these buyers won’t get to see your house or make an offer.You will also need to have very good marketing and negotiating skills to find a buyer who is willing to pay your price. Sadly, most FSBOs don’t succeed although there are those able to sell but not as quickly as they would have with a professional broker or real estate agent.I wouldn’t say real estate agents are an unnecessary expense because they will definitely bring value to your real estate transaction. After all, you don’t pay them a dime if they don’t make a successful sale.You might want to look up FSBO vs. hiring a real estate agent to compare your options.
If I see a house for sale, can I bypass the real estate agency and contact the owner to buy the house?
If you see a house for sale and it’s listed with a real estate brokerage, can you contact the owner directly?Yes. Absolutely. 100%.The owner is the owner and seller. He/she is going to decide to whom to sell, and what prices and terms are acceptable. The agent is only (and I use that word deliberately) an agent of the seller.Further, you can negotiate the entire deal with the seller. Heck, you can buy the property without ever consulting an agent.Now, some of the other considerations already noted in other answers are valid. For example:It’s very likely that the listing agreement that the seller has with the listing agent specifies that the seller must pay a commission regardless of the role played by the agent. (The language is more technical, of course, but the listing agreement almost certainly specifies that the agent will still receive the negotiated commission.) So the seller won’t save any commission. And if you’d had a buyer’s agent, your agent would have been paid out of the seller’s commission.As a practical matter, the owner engaged the listing agent because the owner wanted that person to act as his agent. It’s not likely that the seller will be enthusiastic about negotiating with you, and without his/her agent. Beyond that, there’s a lot that goes on behind the scenes—a lot of paperwork and details—that agents do or help with. (How familiar are you with Megan’s Law? Or laws on lead-based paint? Or the time frames within which certain documents must be supplied? Or what things about the house must be disclosed? Or can they be disclaimed? And so on.) Most sellers generally don’t want to handle all that.Still, you can approach it as a hybrid situation. Recognize that the seller has to pay the commission in any case. And recognize that the seller doesn’t want to deal with all the details of the transaction. But you certainly can try to make an initial contact with the seller, explain your interest, and even get agreement on some basic points. Then you turn it over to your buyer’s agent (who can represent you and is getting paid by the seller) to work out the details and make sure it’s all done properly. The listing agent won’t be particularly happy, and even your buyer’s agent may advise against it . . . with some justification. But one of their prime motivators is earning the commission. So long as the deal goes through, the agents will be OK.
As a Baltimore City real estate owner, how difficult is it to rent out your unit?
Baltimore is a city of neighborhoods, so the difficulty of finding a reliable tenant will depend heavily on where you buy a house. I'm not certain why you feel the number of boarded up houses is relevant to your rental appeal? Were you planning on renting out a boarded up house, and worry there's too much competition?Those houses are boarded up because they are abandoned or unlivable. Unless you were thinking of renting out a comparable property, I don't think you need to worry they'll impact your ability to rent a warm, livable space with a roof and walls. Is your concern that they'll decrease the value of your rental? Because in that case, consider buying a house in an area far from the bulk of abandoned homes. If you are buying a house to be rented out in a populous area with high demand (e.g. near one of the universities -- Morgan State, Coppin State, Johns Hopkins, University of Baltimore, UMBC, etc.), then you should have no problem. I'm thinking of buying a rental property in the Mid-town Belvedere area, and I don't anticipate any trouble in finding tenants. My parents have been longtime property owners in Baltimore, and have kept rented out: a three-apartment brownstone on Eutaw Street, a five-unit house in Forest Park, a three-unit townhouse on 23rd Street, and now a single family house in Callaway-Garrison. Their tenants were a variety -- a professional photographer, a couple of teachers, some city workers (e.g. subway technicians), a young lawyer. ETA: Baltimore is actually a uniquely good rental market, if you can get a property in the high-demand areas. Baltimore Rent Trends In Baltimore, it can be cheaper to buy than to rent Bettenhausen bought a three-bedroom, two-bath rowhouse in Remington — with a serious cigarette smell and some sloppy electrical work — for $86,000. Two months later, after some upgrades and deep cleaning, he rented out the house for $1,400 a month, at least double what a 30-year mortgage plus taxes might have cost on the property.And this link is slightly older, but still reflective of current trends: Home Buying: How is the rental market in Baltimore (Canton area)? Is it feasible to buy with intentions to live in a row house for 4 years, and rent out afterward? - Trulia Voices
I booked a rental for beach vacation NC, the owner sold to a real estate co. Can I get out of the contract since other party is no longer the owner?
Probably not. The debts, obligations and future involvements inure to the buyer. It is no different than the new owner cancelling your reservation for no good reason. If you have already paid the party as prior owner, you may have a problem with the new owner if the proceeds of the rental were not transferred. Good luck with that..it can be an expensive event and you have little recourse.