Real Estate Home Question

[Kurtdesign1]

Justin, (because I hate the process) I'd use the Realtor and negotiate the fees with her. Tell her you would be up to a 6 or 7% commission if she sold for the price/time you'd want. Technically it can't (or shouldn't) be done but these sorts of things are always finagled. Obviously you can lower the commission depending on how long it sits. Be realistic (perhaps after 6 months there's a draw below her norm rate) and she might just agree. One strategy you guys might go after is to put your house in a different price range. List it at $350. If it's as nice as you put it or has as many special features, you may get someone who wants a specific thing who's interested and then be able to deal, while still within your safe price range. Who wouldn't think they were getting a great deal if they "negotiated" off 50k from the contract?!?

I will say this, if you'll COMMIT to selling this baby, I mean really commit, list it yourself. The benefit of a great Realtor is they get it out there in areas most people wouldn't get themselves. If you can do that alone, don't list lower, list it where you want it and use that cushion as your negotiation parameters.

Wish I had more for you bro but this is about the end of my rope. Best of luck, my friend.

 

[Electric Sheep]

FYI -- your Realtor does not make 5% commission; they only make 2.5%, with the other 2.5% going to the buyer's Realtor. Then on top of that, it's not uncommon for a Realtor to have to pay the company they work for (eg, Coldwell) .5% to 1% of their 2.5%, so in reality the commission the Realtor themself earns is likely to be in the 2% range. Realize that it's quite difficult to negotiate much more than 1% discount because in all likelyhood, a Realtor would rather NOT do your deal than have to work their ass off to make 1% or less.

Also, realize that if you FSBO your home, you may think you're avoiding the 5% commission, but you're still going to have to pay the buyer's Realtor their 2.5%. If you don't, then it's up to the BUYERS to pay their Realtor that 2.5%, and you'll find that most buyers will walk away from your house to go buy one down the street that the seller is covering their Realtor's 2.5% fee.

On top of that, if you want your house listed in the MLS (which really is a requirement if you want buyers to know about it) then you're still gonna pay for that anyways. So if you FSBO, you lose:

- The operational expertise of the Realtor (keeping the deal on time and on track)
- The legal expertise of the Realtor (things can get screwy without expert advice)
- The property comparison data of the Realtor (** sqft on recent sales being the key)
- The negotiating experience of the Realtor (they know when to hold, and when to fold)
- The marketing expertise of the Realtor (telling other Realtors about your house)
- The staging expertise of the Realtor (how to best present your house to sellers)

Can you do it without a Realtor? Sure, of course. People do it all the time--but typically, the successful ones are people who have a lot of experience doing FSBOs.

A good Realtor (which is admittedly difficult to find) will work their ass off and EARN the 2.5% they'll charge you--saving you a lot of headaches along the way.


One more thing...

Remember that a Realtor does not set the price of your home. Neither do you. Your investment in your home also is completely irrelevant to the price of your home. The *ONLY* thing that dictates the price of your home is the market itself. Homes that are priced correctly for the market sell; those priced incorrectly do not.

 

[Jfire]

Duane I ment "Chop" that half By taking 5% @ 13000(total commision to buyer and seller agent). in half (my realtor out) 6500.00 off the price of the home. Then list a MLS FSBO w a 2% commision to a buyers realtor for bringing in a client.
My heart tells me to go with the realtor but I hope in this case shes doing everything in her power just to get clients in and make a sale.

 

[Electric Sheep]

Sorry. I read this in your original post...

I know I need a Realtor but Im pissed that Im going to take such a big loss and there going to want 5% still.

...and took that to mean you didn't want to pay the 5%, but then missed your "chop" comment 6 posts later.

 

[Electric Sheep]

My heart tells me to go with the realtor but I hope in this case shes doing everything in her power just to get clients in and make a sale.

The key there is to go with a known-good Realtor. Not a friend. Not someone with a slick sales brochure. Not someone with years-and-years of experience. Not someone who owns their own Realty company.

You need to find someone who is moving houses RIGHT NOW, in this economy.

Then, you need to shut your mouth, keep your opinions to yourself, do whatever they tell you to, and let them do their job...because the only reason they're moving houses is because they know what they're doing. So let them do it.