FSBO Helper Marketing Program

Real Estate Services for By Owner Sellers

In addition to traditional commission-based real estate brokerage services, that all brokers offer, I have designed a fixed fee program that many “by owner” sellers and buyers have been asking for. This program does not include any marketing services, so the work to be performed by the real estate licensee is pretty much the same, regardless of the sale price of the home. That is what allows me to offer this kind of program at a very reasonable fixed price.

FSBO Helper Prerequisites

• The Seller is responsible for all marketing, including newspaper advertising, home showings, yard signs, property flyers, etc. I can provide some sample flyers and flyer files in Word or Publisher formats, that the Seller can then customize.
• The seller and buyer have a basic verbal agreement that the buyer will buy the home for a given price. I will assist with additional negotiations of terms as described below.
• The buyer must be preapproved by a local lender for any loan that may be required, subject to final contract, appraisals, survey, clear title, etc. If the buyer does not already have a mortgage lender or broker, I can refer them to several good ones. Pre-qualification by Internet or out-of-state lenders does not satisfy this requirement.
• Buyer and Seller must both agree to use me as their exclusive Transaction Broker, as defined in the applicable State of Colorado Agency Disclosure form. Further details will provided at first meeting with sellers.
• Buyer and Seller must both agree to use our preferred service providers for all closing services, including title work, transaction management, closing services, escrow agent, home inspectors, and survey contractor, if required by the lender. Using our preferred service providers for these services will allow for a smooth closing, as they are familiar with these kinds of transactions.

FSBO Helper Fees

• Buyer and/or seller must both agree to my fixed fee of $4,000. They may choose to share and split this fee. There is no other “transaction fee” or other agency costs.
• $2,000 of the fee is payable up front, and is non-refundable, regardless of whether the transaction closes or not. The remaining $2,000 is payable at closing. All payments are made to Denver Home Value Realty LLC by the closing agent or title company.
• If the Buyer already has a real estate broker, and Seller wishes to accept an offer contingent on Seller paying Buyer’s brokerage fees on Buyer’s behalf, then Seller must agree to pay a co-op brokerage fee to the Buyer’s broker. In Denver, this is typically 2.8% of the final negotiated sale price. In this case, seller will still be responsible for the entire “FSBO Helper” fee as specified above.

On a $250,000 home sale, this fixed fee plan fee represents a savings of $12,000 vs. a typical full service listing fee of 6%, and a savings of $3,000 vs. the typical 2.8% co-op fee most local Realtors request when they bring a buyer to a by-owner seller. Obviously, the savings are even greater on higher value homes! The real savings are in reduced effort and risk for all parties, and in having a “one-stop” provider for all of the included services.

FSBO Helper Services Included

• All up-front consultation and contract preparation services are done with all parties in attendance at our office, or at the property, and generally takes about 2 to 3 hours, depending on the complexity of the offer.
• First, I prepare good-faith estimates of closing costs for all parties, based on the negotiated purchase price and information from buyer’s lender regarding loan terms. Sellers and buyers often do not know what their final closing costs will be until the last minute. The deal could fall apart at the closing table when faced with the final HUD-1 closing statement that details these costs. Buyers may not be prepared to pay all of their closing costs. Sellers may not have enough proceeds after closing expenses to pay off prior mortgages. These are common issues that occur, especially in today’s tight market.
• Once everyone is comfortable with and understands the good-faith estimates, everyone executes my limited services brokerage agreement, and the up-front part of my fee is paid.
• Building a good and fair contract is the key to a successful transaction. Using standard forms specified by the State of Colorado, I assist buyer and seller jointly with final contract negotiation and preparation, including all required seller property disclosures, closing instructions, all federally required addenda and other disclosures as may be required. All time lines, terms and responsibilities of all parties are clearly spelled out. I use a special software program that prepares and prints ready-to-sign contract documents.
• Buyer and Seller sign the final contract and all addenda and disclosures, and buyer remits a check for the earnest money, payable to and held by the selected our escrow and closing company.
• I deliver the earnest money to the closing company. I arrange for and attend all inspections and appraisals that may be required. The buyer’s lender will usually specify the appraiser. All other services will be done by our preferred providers.
• I assist the parties with negotiation of any repairs that may need to be done as a result of the inspections. Any repairs, if required, would be contracted to any of several preferred providers or other qualified contractors, based on a low bid process. Seller is responsible for contracting for, approving and paying for all repairs, unless otherwise negotiated with the buyer.
• I work with buyer and buyer’s mortgage lender as required.
• I arrange for and attend the closing with all parties. The remainder of my fee is paid at this time.