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shotar
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Posted: 4/22/2012 8:42:48 AM EST
My wife and I went out to look at properties this morning. We found that the only good deals were through realtors. We looked at several FSBO properties and determined that the owners were generally out of their minds or so emotionally invested in the property that they just were not serious about selling. What we found with the FSBO deals were that they were about 40% higher priced than nearby comps that were realtor listed.

A word of advice, as soon as the old guy starts saying things like " I built this barn with my own hands ", politely find a reason to leave and don't look back. Old dude, look around you, your 2 acre property with two barns and 1920 built house, is not worth $80k more than the one up the road with 20 acres and a larger house and 1 barn.
Trusting your life to the benevolence of an armed criminal is not a strategy, it is stupid!
bob200587
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Posted: 4/22/2012 8:44:53 AM EST
lol
MNSwede
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Posted: 4/22/2012 8:47:29 AM EST
FSBOs are easy money for myself and my realtor friends
theBUBBAMANcan
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Posted: 4/22/2012 8:47:43 AM EST
You just haven't been looking long enough or at the right places.

I totally disagree with you that the only good deals are through realtors...the only good deals are FSBO. Realtors are NOT in business to sell below market value.

True, in this market many owners are having a hard time coming to terms with selling into this market. ANYONE who is selling ANYTHING they are emotionally invested in is to be avoided.

Be patient, OP. Look at a lot of places and wait until you find the right place and a motivated seller.

However, FSBO deals do require you to be a more astute buyer. Know what you are buying, get help as needed (i.e. home inspection).

"All hope abandon ye who enter here." ~Dante
Kharn
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Posted: 4/22/2012 8:50:08 AM EST
FSBO = Realtor's sensible prices were way, way below what they think it is worth.

Kharn
shotar
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Posted: 4/22/2012 8:51:22 AM EST
my wife figured that what happens with many of them is that the owner first calls a realtor. The realtor tells them what the property is likely to bring, they get pissed off because they are not 2006 prices, so they try to go it alone with lots of lookers and no buyers.

I told her it reminded me of the gun show. Whatever I'm selling is just old junk, whatever is on the unlicensed dealer's table is lined with gold. I guess many of these folks will end up like the guy at our local shows who has had the same $1500 DPMS and $30 mags on his table for the last three years.

I told her if we find one we really like, we'll just wait for it to go into forclosure and buy it from the Sheriff or bank.
Trusting your life to the benevolence of an armed criminal is not a strategy, it is stupid!
Plumbata
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Posted: 4/22/2012 8:54:25 AM EST
Walk away. WAY too much drama in a FSBO listing.
Scholars have long known that fishing eventually turns men into philosophers. Unfortunately, it is almost impossible to buy decent tackle on a philosopher's salary. ~Patrick F. McManus
theBUBBAMANcan
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Posted: 4/22/2012 8:55:46 AM EST
Originally Posted By shotar:
my wife figured that what happens with many of them is that the owner first calls a realtor. The realtor tells them what the property is likely to bring, they get pissed off because they are not 2006 prices, so they try to go it alone with lots of lookers and no buyers.

I told her it reminded me of the gun show. Whatever I'm selling is just old junk, whatever is on the unlicensed dealer's table is lined with gold. I guess many of these folks will end up like the guy at our local shows who has had the same $1500 DPMS and $30 mags on his table for the last three years.

I told her if we find one we really like, we'll just wait for it to go into forclosure and buy it from the Sheriff or bank.



I think this is sometimes true.

Sometimes the seller just doesn't have enough equity to pay a realtor commission and still satisfy the mortgage(s).

I read somewhere that short sales have now eclypsed foreclosure sales. The only reason lenders would agree to short sales is when accepting less than loan value to satisfy the loan is the only practical option in a market of declining values.

"All hope abandon ye who enter here." ~Dante
Oofda
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Posted: 4/22/2012 2:31:40 PM EST
Originally Posted By shotar:
My wife and I went out to look at properties this morning. We found that the only good deals were through realtors. We looked at several FSBO properties and determined that the owners were generally out of their minds or so emotionally invested in the property that they just were not serious about selling. What we found with the FSBO deals were that they were about 40% higher priced than nearby comps that were realtor listed.

A word of advice, as soon as the old guy starts saying things like " I built this barn with my own hands ", politely find a reason to leave and don't look back. Old dude, look around you, your 2 acre property with two barns and 1920 built house, is not worth $80k more than the one up the road with 20 acres and a larger house and 1 barn.

This. I'm amazed how many people think their happy memories make a house worth more money to total strangers. Joe Blow Homeshopper doesn't care that you planted pansies by the front porch for 20 years.

Also, if your do-it-yourself projects look like they were built by color-blind retards on meth, don't expect an appraiser to consider them "luxury custom home improvements". You should see my inlaws 2nd bathroom with the crooked tiles and clashing linoleum.
NathanL
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Posted: 4/22/2012 2:37:01 PM EST
[Last Edit: 4/22/2012 2:39:10 PM EST by NathanL]
Sold my last two houses FSBO and I built them myself. Both times I got offers and agreed to a closing in the first two weeks and both were after the housing collapse. Both I wound up getting more than I was asking.

Depends on where you are. I tried using an agent multiple times and it went like this after I drive by and make sure I'm interested in the property. Call and then ask questions they can't answer, then ask for an appointment and they won't, can't, or say they haven't been out to the property they have listed and don't know how to get out there.

Both people who bought my last two houses said they had been working with an agent but never could get an appointment to see anything they were interested in. One of them had been using my next door neighbor who is an agent and they said the description they gave her matched my house exactly and she told them "You can't get financing for a house that's sold by the owner, only thru an agent".

I have probably averaged being able to get an appointment to see a house, land etc...by calling the agent and telling them I have already been out there and am interested and will pay cash maybe 1 in 5 times I try.
shotar
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Posted: 4/22/2012 2:47:39 PM EST
Originally Posted By NathanL:
Sold my last two houses FSBO and I built them myself. Both times I got offers and agreed to a closing in the first two weeks and both were after the housing collapse. Both I wound up getting more than I was asking.

Depends on where you are. I tried using an agent multiple times and it went like this after I drive by and make sure I'm interested in the property. Call and then ask questions they can't answer, then ask for an appointment and they won't, can't, or say they haven't been out to the property they have listed and don't know how to get out there.

Both people who bought my last two houses said they had been working with an agent but never could get an appointment to see anything they were interested in. One of them had been using my next door neighbor who is an agent and they said the description they gave her matched my house exactly and she told them "You can't get financing for a house that's sold by the owner, only thru an agent".

I have probably averaged being able to get an appointment to see a house, land etc...by calling the agent and telling them I have already been out there and am interested and will pay cash maybe 1 in 5 times I try.


Which is fine except that the one up the road for $80k less has literally 10 times the land and twice the house. BTW, the guy called me back and asked if we wanted a showing this week. I said unfortunately we had to pass as we were just too far apart on price. I said I didn't want to insult him by offering half of his asking price as a realistic offer.

Trusting your life to the benevolence of an armed criminal is not a strategy, it is stupid!
NathanL
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Posted: 4/22/2012 2:50:52 PM EST

Originally Posted By shotar:
Originally Posted By NathanL:
Sold my last two houses FSBO and I built them myself. Both times I got offers and agreed to a closing in the first two weeks and both were after the housing collapse. Both I wound up getting more than I was asking.

Depends on where you are. I tried using an agent multiple times and it went like this after I drive by and make sure I'm interested in the property. Call and then ask questions they can't answer, then ask for an appointment and they won't, can't, or say they haven't been out to the property they have listed and don't know how to get out there.

Both people who bought my last two houses said they had been working with an agent but never could get an appointment to see anything they were interested in. One of them had been using my next door neighbor who is an agent and they said the description they gave her matched my house exactly and she told them "You can't get financing for a house that's sold by the owner, only thru an agent".

I have probably averaged being able to get an appointment to see a house, land etc...by calling the agent and telling them I have already been out there and am interested and will pay cash maybe 1 in 5 times I try.


Which is fine except that the one up the road for $80k less has literally 10 times the land and twice the house. BTW, the guy called me back and asked if we wanted a showing this week. I said unfortunately we had to pass as we were just too far apart on price. I said I didn't want to insult him by offering half of his asking price as a realistic offer.



Like I said it depends on where you are. Here even after the collapse getting an agent to answer a question or leave the office is damn near impossible. I have bought/sold 10 houses in the last 6 years and heard the same from the people looking at my houses. There's no doubt some people put stuff up for sale for an inflated price.
39Lasalle
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Posted: 4/22/2012 2:53:45 PM EST
I bought my house from a "for sale by owner" seller. He was in the military and was being transferred. The house was in the neighborhood we were looking to buy in and was a little cheaper than other houses in the area but not enought to worry about other than neither of us had realtor fees to include!!

I had cash in hand and closed in less than a month at my lawyer's office.

I found the whole process really painless but this was the only FSBO we looked at.

39
capnrob97
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Posted: 4/22/2012 2:54:50 PM EST
I sold my townhouse in Tampa FSBO.

Sold in a couple weeks too.
This post is solely the opinion of capnrob97 and does not reflect the views of ar15.com
pv74
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Posted: 4/22/2012 2:55:58 PM EST
Originally Posted By NathanL:
Sold my last two houses FSBO and I built them myself. Both times I got offers and agreed to a closing in the first two weeks and both were after the housing collapse. Both I wound up getting more than I was asking.

Depends on where you are. I tried using an agent multiple times and it went like this after I drive by and make sure I'm interested in the property. Call and then ask questions they can't answer, then ask for an appointment and they won't, can't, or say they haven't been out to the property they have listed and don't know how to get out there.

Both people who bought my last two houses said they had been working with an agent but never could get an appointment to see anything they were interested in. One of them had been using my next door neighbor who is an agent and they said the description they gave her matched my house exactly and she told them "You can't get financing for a house that's sold by the owner, only thru an agent".

I have probably averaged being able to get an appointment to see a house, land etc...by calling the agent and telling them I have already been out there and am interested and will pay cash maybe 1 in 5 times I try.


"you can't get financing". Bull fucking shit you can't.
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Madcap72
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Posted: 4/22/2012 2:56:38 PM EST
Huh, my buddies a real estate agent, I guess that's why he does so well, he bends over backwards for his clients.
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Blinker_Fluid
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Posted: 4/22/2012 2:57:06 PM EST
[Last Edit: 4/22/2012 2:57:48 PM EST by Blinker_Fluid]
Originally Posted By Kharn:
FSBO = Realtor's sensible prices were way, way below what they think it is worth.

Kharn




Correct most of the time.
NathanL
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Posted: 4/22/2012 2:59:45 PM EST

Originally Posted By pv74:
Originally Posted By NathanL:
Sold my last two houses FSBO and I built them myself. Both times I got offers and agreed to a closing in the first two weeks and both were after the housing collapse. Both I wound up getting more than I was asking.

Depends on where you are. I tried using an agent multiple times and it went like this after I drive by and make sure I'm interested in the property. Call and then ask questions they can't answer, then ask for an appointment and they won't, can't, or say they haven't been out to the property they have listed and don't know how to get out there.

Both people who bought my last two houses said they had been working with an agent but never could get an appointment to see anything they were interested in. One of them had been using my next door neighbor who is an agent and they said the description they gave her matched my house exactly and she told them "You can't get financing for a house that's sold by the owner, only thru an agent".

I have probably averaged being able to get an appointment to see a house, land etc...by calling the agent and telling them I have already been out there and am interested and will pay cash maybe 1 in 5 times I try.


"you can't get financing". Bull fucking shit you can't.

I've also had people look at my house for sale and tell me their agent told them an agent couldn't show a house for sale by owner - only another agent, which is also BS if they ask ahead what the comission terms are.
arowneragain
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Posted: 4/22/2012 3:10:13 PM EST
We recently bought some property, using the listing realtor as a dual disclosed agent.

The experience didn't make me hate realtors, but it made me see that they're just greedy enough that if I ever bought anything again, it would be FSBO or through a buyer's agent. It was clear that, depsite the agreement, our realtor had the seller's interest as the highest priority.


Oddly enough, a potential buyer was/is looking at a property near us, got our phone number from a neighbor, called us, and told us a sob story about how porr the local realtors were to deal with. All of this has made me think maybe I should go into realty as a business. Seems like a customer-oriented agent willing to spend time with the 'little guys' could make a decent living.

...But his word was in mine heart as a burning fire shut up in my bones, and I was weary with forbearing, and I could not stay...All my familiars watched for my halting...But the LORD is with me as a mighty terrible one...

Jeremiah 20 9-11
theBUBBAMANcan
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Posted: 4/22/2012 3:47:53 PM EST
[Last Edit: 4/22/2012 3:50:43 PM EST by theBUBBAMANcan]
1. Realtors are disgusting thieving cheating liars (for the most part...present company excepted)

2. Realtors work on a percentage...you are a FOOL if you think they want you to get a house for one dime less than maximum possible price. What they want is a big commission check, and they get that by getting YOU to pay MORE.

3. Most of the realtors that I have worked with in the past behave exactly like this person:

















If you want to buy homes BELOW market value...you must...

1. Know your market and know what you are buying. Know what houses are worth, know the neighborhoods and what changes are on the horizon (such as if the .gov is gonna trash the area). In other words, do your homework.

2. Skip the middleman. Realtors are the middleman/middlewoman...they are commission salespeople who make their living by selling for max value. They do not add value to the deal (from a buyers perspective).

3. Be patient, be diligent, be flexible and be ready to jump on a good deal. You will have to look at a lot of homes and it's hard work. Most people don't want to do this work, but there's a LOT of money on the line.

What you are looking for is motivated sellers that have the kind of home that is desireable to you. You need to have your down payment and financing in order and be prepared to close in a hurry for the right deal. You need to be a tough negotiator and willing to walk away. If you are not embarrassed by your offer then you are offering too much.

"All hope abandon ye who enter here." ~Dante
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Posted: 4/22/2012 5:25:34 PM EST
Location. Location. Location. That 20 acre place may be located Next to a Liberal gun Banner.














Impeach Obama for the Good of the Poor.
grayparatrooper
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Posted: 4/22/2012 5:50:07 PM EST
Originally Posted By theBUBBAMANcan:
1. Realtors are disgusting thieving cheating liars (for the most part...present company excepted)

2. Realtors work on a percentage...you are a FOOL if you think they want you to get a house for one dime less than maximum possible price. What they want is a big commission check, and they get that by getting YOU to pay MORE.

3. Most of the realtors that I have worked with in the past behave exactly like this person:


http://youtu.be/6xCCoull3I4



Good advise. Ivebeen thinking about getting a home and ya it's a pain.










If you want to buy homes BELOW market value...you must...

1. Know your market and know what you are buying. Know what houses are worth, know the neighborhoods and what changes are on the horizon (such as if the .gov is gonna trash the area). In other words, do your homework.

2. Skip the middleman. Realtors are the middleman/middlewoman...they are commission salespeople who make their living by selling for max value. They do not add value to the deal (from a buyers perspective).

3. Be patient, be diligent, be flexible and be ready to jump on a good deal. You will have to look at a lot of homes and it's hard work. Most people don't want to do this work, but there's a LOT of money on the line.

What you are looking for is motivated sellers that have the kind of home that is desireable to you. You need to have your down payment and financing in order and be prepared to close in a hurry for the right deal. You need to be a tough negotiator and willing to walk away. If you are not embarrassed by your offer then you are offering too much.



NoStockBikes
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Posted: 4/22/2012 5:50:10 PM EST
[Last Edit: 4/22/2012 5:52:00 PM EST by NoStockBikes]
A good buyer's agent is worth their weight in gold. They know the area, know the market, and they watch houses come and go. That insight can be very valuable. We just worked with a very good one. Best realtor experience we've had. Crappy ones that are mailing it in are paperweights. I bet they can get jaded by wasting day after day with tire kickers, though.

I think that a person can get away with FSBO in certain markets. We did it with a townhouse way back in the day. Was a real easy win-win for us and the buyer because it was a simple transaction. I do think a lot of FSBO's tend to be people who think the market analysis was crap, and they don't want to pay out 6%. Of course, in an underwater (or close to it) situation, the reluctance to go with a realtor is even greater. When you're coming out ahead, it's easy to share the profits. When you're selling a house that you owe $300,000 on for $300,000, you're not coming out even, you've still got to pay some guy $18,000 out of your pocket. That can be hard for people to swallow, even impossible in some cases. Their only choice is to go FSBO, or raise their price enough to cover the commission.


How must I prepare you must ask yourself. Should I jump off the tallest building in the world? Should I lay on the lawn and let it run over me with lawnmowers? Should I go to Africa and let it trample me with raging elephants?