Commission savings

B - List and Still Sell By-Owner: Is this a smart approach?

Buyer exceptions:

When selling by-owner, you'll show your home to a number of prospective buyers. Later, if you list your property, you can have these prospects excluded from the listing agreement. This means that you can avoid paying a commission if one of these prospects buy your home.

• This is a common practice

Agents expect exceptions from owners who have previously worked to sell on their own. When listing with an agent you need to stipulate on the agreement the names of these prospects. Limit the exception period to a month. Your list should only contain a few good prospects, not everyone that saw the house.

Even if you didn’t attempt to sell on your own, you can list individuals that have previously expressed a sincere interest in your home. For a quick sale, contact them and encourage them to buy your home and save the commission.

• A great selling opportunity

This is an excellent reason to call these people and advise them that they are an exception to your listing agreement. This could get them motivated to buy at what most likely will be a better price. Let them know that you can be flexible on price if they buy before the deadline when the agent takes over.

Get listed and sell by-owner:

• Here’s how

When listing with an agency, you'll be signing a listing agreement that is an "Exclusive Right To Sell." This common agreement gives them the exclusive right to be your listing agent and receive a commission for doing so. But agencies can also offer a listing agreement called an “Exclusive Agency Agreement.” It allows you to continue selling on your own and also be listed with that agency. This way you will be listed on the MLS and the national Realtor web site. This gives you the best of both worlds: real estate agents will help to sell your home, plus you can continue to advertise and sell on your own. Selling without an agent means no commission. Sounds tempting.

Agents will discourage this agreement and want you to sign their exclusive agreement. However, all agencies offer the Exclusive Agent Agreement allowing you to sell your home yourself and not have to pay a commission. They just keep quiet about it.

• Beware, the problem

Agents are reluctant to show your home if you also display a by-owner sign. They know that their buyers will see the real estate agency sign in your front yard along with your own sign. They will spread the word among their fellow agents. They know that buyers could go directly to you and negotiate a better deal. If you want to appeal to agents, have only the agency sign posted.

• Getting around this dilemma

Take advantage of being able to list and still sell on your own. Don’t put up a FSBO sign. Concentrate your marketing efforts on classified ads. These should not include your address (forcing a phone call where you can explain your listing arrangement). Also, advertise your home on many low cost internet sites displayed on the Seller_Resource_pages.