This was a condo that I had previously been renting out, so there were no issues with keeping the place clean to show. I left a key to the condo with the Select-A-Fee people and buyers with brokers just picked up the key from there. Buyers without brokers I sent someone to show around.

Total cost including the virtual walkthough was $1000. 2.5% would have been about $6,000. Frankly, I felt so guilty that I tossed them an extra $500 gratis. That has actually worked great because they now give me real estate searches, alerts, research for free and direct deals my way.

I am a former real estate broker, so I know that sometimes more than 50% of deals result in no comission. That is, the house just does not sell – so the listing agent gets nothing. Instead, under this model you pay in advance. They get their money up front which takes the risk away (recognize that the reason that commissions are typically so high is that you are making the real estate agent bear the risk that the property won’t sell.)

Recognize however, that you are still going to have to offer the 2.5% co-op to the buyer’s broker, so you are only looking at a savings of about 2%-ish on the purchase price.

Also, I like this arrangement because I don’t have to worry about the listing agent putting pressure on me to sell (like they do in a regular arrangement because they want their money.)

You have to watch out with a FSBO because sometimes agents won’t show the property to prospective buyers – or may not bother looking as FSBO-only websites – and you really want to get traffic. In my area, most FSBOs seem to be having a rough time. There is plenty of supply, so buyers agents are directing sellers to high-commission properties.

There are many pains that the Seller has to take to sell it through this method. Basically, it starts with you defining everything you want to say in the MLS listing page. Second, you have to make some excellent collateral material to do the marketing of your own home/area/features.

Also, all showings are done by the Seller. So, you have to stop your life, stop most ‘smelly cooking’ and always keep the home neat and clean.

Finally, it will take a bit longer to sell in todays’ market unless you undervalue your home. So, you have to do all of the above for a good period of time (check avg lead time to sell homes in your area, and then check the shortest and longest time).

This is above all of the analysis you have to go through to determine the selling price, as well as preparing your home for a sale.

I am missing many things, like prequalifying your buyers, showing the home to nosy neighbors, getting phone calls at all times of day and night, and finally, the negotiations that you would have to enter into with one or more buyers.

I got all kinds of people, but I was determined to sell it myself, and finally got a buyer under the FSBO model, so I even saved the 2.5% I was supposed to pay, since the ‘real buyer’ saw my online FSBO ad and came in!

Hope this helps.

Kenny