The Real Estate Investing Thread

[kim carnes]

giving someone tens of thousands of dollars to walk someone through my house seemed foolish

depends what your time is worth to you

How does a realtor save you time as a seller??

[steve dave]

giving someone tens of thousands of dollars to walk someone through my house seemed foolish

depends what your time is worth to you

How does a realtor save you time as a seller??

By selling a house for you


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[Pete]

I made my wife show our house. I couldn’t do that crap, and that was when I was young and ballsy.

[michigancat]

I never saw a FSBO in the Bay Area

Don't know why when you guys make it seem so easy (for real)

[steve dave]

I’m sure you could do it. It seems easy enough. But why? There are millions of desperate realtors that will do it for you.


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[yoga-like_abana]

I’m sure you could do it. It seems easy enough. But why? There are millions of desperate realtors that will do it for you.


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At what % nerd


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[Pete]

If the sales commission numbers come down into the 2% range, then I'd be more inclined to use a traditional realtor, but it still feels like WAY too much money.  If you sell a $500K house at 6% that's $30K out of your pocket.  If you sell one for 2% that's $10K. 

I think that the service of 1) helping take pictures of my house and put it on the MLS, 2) showing the house when people want to see it, 3) hoisting an open house or two, and 4) helping with the process and paper work of handling the offers and counter offers, and 5) helping with the process and paper work handoff with the title company to help make the closing smooth is valuable but worth a LOT less than $10K.

By comparison, if you pay an attorney to estate planning for a fairly complex Trust, wills, all that crap, you'll pay less than $10K, and that's for the time of someone with a J.D.

I think a fair price for what I described above is less than $5K.

[Stupid Fitz]

If the sales commission numbers come down into the 2% range, then I'd be more inclined to use a traditional realtor, but it still feels like WAY too much money.  If you sell a $500K house at 6% that's $30K out of your pocket.  If you sell one for 2% that's $10K. 

I think that the service of 1) helping take pictures of my house and put it on the MLS, 2) showing the house when people want to see it, 3) hoisting an open house or two, and 4) helping with the process and paper work of handling the offers and counter offers, and 5) helping with the process and paper work handoff with the title company to help make the closing smooth is valuable but worth a LOT less than $10K.

By comparison, if you pay an attorney to estate planning for a fairly complex Trust, wills, all that crap, you'll pay less than $10K, and that's for the time of someone with a J.D.

I think a fair price for what I described above is less than $5K.

Agree. Comps are very easy to find. Pictures barely matter unless they are completely awful since people will come look no matter what. The last time we sold, I paid a small amount to get it on MLS sites, but even that was a waste. I linked it on various social media and that is where the buyer came from. Easy peasy. Its def not that easy in every area, but in KC it was no problem. We were done and closed at the same time as the new house. At that point, I really needed the money saved selling myself for the down payment on the new. Now, I would just not want to give someone 15k for something I can do with minimal effort.

I was also just thinking that is probably blowing everyones mind that I pulled off selling and buying a house on my own with no problems and I come here and yell about not being able to work travel websites. 

[wetwillie]

Sounds like there is a business model to sell DIY packages to would be home sellers. I think it's a time component and also a lack of knowledge component that keeps people from FSBO.

[Stupid Fitz]

Sounds like there is a business model to sell DIY packages to would be home sellers. I think it's a time component and also a lack of knowledge component that keeps people from FSBO.

For sure, I totally get why people wouldn't even attempt it. I just needed the cash at the time so I gave it a go and found it wasn't nearly as hard as I thought it might be. I had a realtor on standby in case something happened or if it wasn't selling as I had already bought the new place and the closing date was set. All worked out, but there was def some stress. Honestly the worst part was dealing with realtors calling and wanting the listing. After a few days, I figured out that the first thing I needed to say when I got a call was, "are you a realtor"? Some of them were real assholes and would pretend to be a buyer for 10 minutes on the phone and then tell me they had buyers if I gave them the listing. I just told them all to check back in a month.

[yoga-like_abana]

I never saw a FSBO in the Bay Area

Don't know why when you guys make it seem so easy (for real)

https://www.zillow.com/san-francisco-ca/?searchQueryState=%7B%22isMapVisible%22%3Atrue%2C%22mapBounds%22%3A%7B%22north%22%3A37.897036154147635%2C%22south%22%3A37.65334694399026%2C%22east%22%3A-122.12811557177734%2C%22west%22%3A-122.73854342822266%7D%2C%22usersSearchTerm%22%3A%22Manhattan%2C%20KS%22%2C%22filterState%22%3A%7B%22sort%22%3A%7B%22value%22%3A%22days%22%7D%2C%22pmf%22%3A%7B%22value%22%3Atrue%7D%2C%22pf%22%3A%7B%22value%22%3Atrue%7D%2C%22ah%22%3A%7B%22value%22%3Atrue%7D%2C%22fsba%22%3A%7B%22value%22%3Afalse%7D%2C%22nc%22%3A%7B%22value%22%3Afalse%7D%2C%22fore%22%3A%7B%22value%22%3Afalse%7D%7D%2C%22isListVisible%22%3Atrue%2C%22regionSelection%22%3A%5B%7B%22regionId%22%3A20330%2C%22regionType%22%3A6%7D%5D%2C%22mapZoom%22%3A11%2C%22category%22%3A%22cat2%22%2C%22pagination%22%3A%7B%7D%7Dhttps://www.zillow.com/san-francisco-ca/?searchQueryState=%7B%22isMapVisible%22%3Atrue%2C%22mapBounds%22%3A%7B%22north%22%3A37.897036154147635%2C%22south%22%3A37.65334694399026%2C%22east%22%3A-122.12811557177734%2C%22west%22%3A-122.73854342822266%7D%2C%22usersSearchTerm%22%3A%22Manhattan%2C%20KS%22%2C%22filterState%22%3A%7B%22sort%22%3A%7B%22value%22%3A%22days%22%7D%2C%22pmf%22%3A%7B%22value%22%3Atrue%7D%2C%22pf%22%3A%7B%22value%22%3Atrue%7D%2C%22ah%22%3A%7B%22value%22%3Atrue%7D%2C%22fsba%22%3A%7B%22value%22%3Afalse%7D%2C%22nc%22%3A%7B%22value%22%3Afalse%7D%2C%22fore%22%3A%7B%22value%22%3Afalse%7D%7D%2C%22isListVisible%22%3Atrue%2C%22regionSelection%22%3A%5B%7B%22regionId%22%3A20330%2C%22regionType%22%3A6%7D%5D%2C%22mapZoom%22%3A11%2C%22category%22%3A%22cat2%22%2C%22pagination%22%3A%7B%7D%7D

[LickNeckey]

Sounds like there is a business model to sell DIY packages to would be home sellers. I think it's a time component and also a lack of knowledge component that keeps people from FSBO.

at closing the Title Company said that they basically had all of the challenging parts (contracts etc.) available to me for free

so check with a title co if you are fsbo'n

[steve dave]

I’m sure you could do it. It seems easy enough. But why? There are millions of desperate realtors that will do it for you.


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At what % nerd


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Whatever you negotiate with them and land on. There are so many borderline homeless realtors out there you have a lot of bargaining power. Most of them just do it as a part time “job”.


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[LickNeckey]

I always saw the realtor's biggest job as being to run comps and use whatever tricks to drum up as much interest as possible. Selling a house isn't hard, but if you do it yourself it's also hard to know whether you could have gotten another $20k+ out of the process by getting a bid war going.

imo best case scenario you get a bidding war that nets a large enough difference to cover the realtor expense

[steve dave]

There are 2m realtors in the USA. There are 1.4m houses for sale in the USA. The top 10% of realtors probably handle half of those.


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[steve dave]

I am definitely not defending realtors as a viable profession or service all else equal. I’m just saying my personal time is extraordinarily valuable and I never plan to sell a property without one. I also won’t plant a garden, mow my own grass, etc. I don’t get joy out of those things. Some people do though!


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[Pete]

Yeah, I want to outsource selling a house too, but I think it should cost like 1% instead of 6%.

[Dugout DickStone]

the number of realtors demanding you agree that the market is great for buying rn on Facebook is in the billions

[KITNfury]

There are 2m realtors in the USA. There are 1.4m houses for sale in the USA. The top 10% of realtors probably handle half of those.


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I think it might be more. I've heard the stats but I don't remember exactly... IIRC, it followed pretty close to the 80/20 rule where like 80% of transactions are done by the top 20% of realtors.

A lot of "realtors" are completely inactive though.

[IPA4Me]

There are 2m realtors in the USA. There are 1.4m houses for sale in the USA. The top 10% of realtors probably handle half of those.


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I think it might be more. I've heard the stats but I don't remember exactly... IIRC, it followed pretty close to the 80/20 rule where like 80% of transactions are done by the top 20% of realtors.

A lot of "realtors" are completely inactive though.

Plenty of home builders and their wives with an RE license closing their own deals.