FSBO or Realtor?

Rare FSBO spotting in Hoboken

You’d think with the economy “tightening” that more and more people would try to sell their homes themselves. But the FSBO spottings are far and few between in Hoboken.

Here’s one we saw the other day at 1218 Washington Street, unit 8C. You interested? Email 1218Washington@gmail.com for more info.

FSBO Hoboken NJ 1218 Washington Street

Would you sell your Hoboken apartment yourself (FSBO)?

10/24/2012 Update:

I noticed this property at 1123 Washington Street had a big banner out front, clearly indicating that it was for sale by owner (FSBO).

They boasted that there was no brokers or Hoboken Realtors involved, which obviously means one thing: No middle man, and no fees.

On paper, this allows the buyer to pay a bit less, and the seller to keep a bit more (provided the condo is sold at less than it would had an agent been involved.)

The average price paid for a condo in Hoboken as of late is around $525,000. With the 6% fee, that’s over $30k that you can take out of the equation!

Is having a Realtor worth the 6% fee?

It definitely seems that the majority of home owners use Realtors versus trying to sell their apartment themselves.

Do the services that real estate offices provide justify the price? With some of the larger brownstones – you could be talking between $60k and over $100k! For what? Color brochures and open houses?

I can certainly understand that if your home is listed in the Hoboken MLS listings, that you’d certainly get more exposure.

But with sites like FSBO.com, Craigslist and Zillow – coupled with the fact that Hoboken is a “hot” market, perhaps either Realtors aren’t as necessary as they used to be, or could cut their commissions down in half or more?

8 Responses

  1. homeworld says:

    You can always negotiate that commission % down.

  2. briank says:

    In a strong market you can list FSBO and probably do ok. I sold my place by owner 2 years ago (at te time the market wasn’t great). I did have previous work experience in the mortgage business so I had experience. Even with that, one caution others should think about is dealing with showings and open houses. I have kids as a dog- you need to get them all of oh the house and find somewhere to go for a couple hours on weekends, evenings for showings, etc (it as especially a pain with the dog and that it was the middle of te winter). Anyway, one spouse will not be happy with that situation.
    Also, even if you list by owner, make it clear you are willing to pay a buyer’s realtor. Otherwise you lose probably half of your potential buyers because agents won’t brim their buyers to our home if you are not paying a commission.

  3. xrayfox says:

    at least there should be a maximum $$ amount that a realtor is able to receive! Realtors do basically the same amount of work toward the sale of a 300,000 property as they do for one that’s a 1,000,000 or over.

  4. 212transplant says:

    If you’re in no hurry, FSBO is the way to go. Just a little more work, but worth it.

  5. MidnightRacer says:

    Depends on which side you find yourself.

    As a buyer, you think you can knock off 6%, but don’t realize the owner set a price above realtor listings understanding people will do that. Say they post theirs at 10% above realtor listings, you come under at 6% and basically pay a 4% premium. Typically, people who shop FSBO are low ballers, so it’s stalemate. Sellers of FSBO are not flexible from my experience. You need a third party to convince you to take any offer and work with them.

    As a seller, it is a headache to deal with people who are not screened (by a realtor). Sooooo many dreamers who take up your day, are late, never show, or pretend to be a married couple when really they were just bored one Saturday. You think you’re saving 6%, but when you value your time, you find out after a few months whether or not it’s worth it.

  6. jcboyz says:

    Most qualified buyers use Realtors to help them find a home. Most Realtors do not show FSBO’s so you might get showings but maybe 10 instead of 100. Believe me, the 100 showings will produce higher offers which will ultimately pay for your realtors commission.

    Also, I do not think that Hoboken 411 has any idea what a good Realtor does when it comes to marketing and selling a home.

    Besides all of the web marketing, MLS and “pretty brochures”. The listing agent keeps track of every showing and will accompany all showings if requested by the sellers. They will get critical feedback which will enable home owners to make educated decisions. they will stage a home if necessary which will enable a seller to get top dollar. The listing agents typically pay for professional photos which will help owners sell their home for more money. The listing agents over see all of the attorney correspondence which could be hundreds of emails. They also handle the home inspection as well as meet the appraisers and make sure the appraiser is receiving the correct comps. Zillow and Trulia are not 100% accurate while realtors have up to the minute data. Also, many homes are sold by realtors that are never on the MLS or other real estate web sites so knowledge of these sales is critical when listing a property. Realtors have relationships with hundreds of other brokers so behind the scenes, we are emailing each other and constantly comparing listings, we basically talk about your home to other agents which can result in a sale. Realtors handle smoke certificates which must be issued by the fire department in order for a home to close, Im sure 411 has no idea about smoke certs since he has rented for ever! Good realtors know what their buyers are looking for and are able to send them listings as soon as they appear while Trulia and Zillow can take up to 24 hours to post a listing. Realtors will show comparables to buyers so they know if they are buying something at below or above market value I can go on but I think you get the point. Hoboken 411 simply has no idea what they are talking about, again!

    • homeworld says:

      But is that really $30,000 worth of work? At $100 an hour, that’d be two months of non-stop work. [quote comment=”217683″]Most qualified buyers use Realtors to help them find a home. Most Realtors do not show FSBO’s so you might get showings but maybe 10 instead of 100. Believe me, the 100 showings will produce higher offers which will ultimately pay for your realtors commission.Also, I do not think that Hoboken 411 has any idea what a good Realtor does when it comes to marketing and selling a home.Besides all of the web marketing, MLS and “pretty brochures”. The listing agent keeps track of every showing and will accompany all showings if requested by the sellers. They will get critical feedback which will enable home owners to make educated decisions. they will stage a home if necessary which will enable a seller to get top dollar. The listing agents typically pay for professional photos which will help owners sell their home for more money. The listing agents over see all of the attorney correspondence which could be hundreds of emails. They also handle the home inspection as well as meet the appraisers and make sure the appraiser is receiving the correct comps. Zillow and Trulia are not 100% accurate while realtors have up to the minute data. Also, many homes are sold by realtors that are never on the MLS or other real estate web sites so knowledge of these sales is critical when listing a property. Realtors have relationships with hundreds of other brokers so behind the scenes, we are emailing each other and constantly comparing listings, we basically talk about your home to other agents which can result in a sale. Realtors handle smoke certificates which must be issued by the fire department in order for a home to close, Im sure 411 has no idea about smoke certs since he has rented for ever! Good realtors know what their buyers are looking for and are able to send them listings as soon as they appear while Trulia and Zillow can take up to 24 hours to post a listing. Realtors will show comparables to buyers so they know if they are buying something at below or above market value I can go on but I think you get the point. Hoboken 411 simply has no idea what they are talking about, again![/quote]

  7. MidnightRacer says:

    Worth it?

    In a strong market, no. In a weak one, maybe. If the realtors would offer a 6% total (split agents) for a sale within 3 months, and then 3% for any sale longer than 3 months, then it makes more sense. You paying for something, might as well get it. Otherwise, anyone cal sell in the long term, and no need for a realtor. However, FSBO always receives low ballers, ewww.

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