I will only make a profit of about 100k. Ill be paying about 25k to the realtor and buyers agent plus 15k for the prepayment penalty. I really need advice. How can I get the most profit in my situation?
2006-09-13 19:18:45 · 15 answers · asked by muuuua 2 in Business & Finance ➔ Renting & Real Estate
You can try selling it yourself (Craigslist, Loot, your local paper) or with an online or discount real estate agent.
If the house is easy to sell why pay 5% (nobody with any negotiating ability at all pays 6% anymore)?
2006-09-13 19:22:01 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Trying to skimp on the service is like sabotaging your own car, or shooting your own horse.
Yes, listing agents cost money, and if you want buyers to come look at your property, you won't stint the buyer's agent either. They are, after all, the ones who are most likely to bring buyers to you. That listing agent is the pro who will work to publicize your property and find you buyers, and putting a discount agent, even if they're luck enough to find you a buyer, up against a full service buyer's agent is dumb. You save 1% on the fee, and lose five times that on the final price.
People think they're being smart by saving on those "wasted commissions", and if you're lucky and a good buyer's agent decides you're property is worth their clients time, you'll only get nailed in negotiations. If a real shark finds you first, watch out.
In a gonzo seller's market it makes a certain amount of sense to go cheap, although even there the people who go full service will end up with more money. The market we're in right now is a buyer's market, and trying to sell profitably when there are 40 sellers per buyer is a hard enough row to hoe when you have someone who knows what they're doing. Try and do it alone, and the real estate sharks will get you.
I'm a buyer's specialist. Try to sell without a good pro on your side, and my clients, or those of somebody like me, will be made very happy by that decision. Yes, it's mean. But to you, I owe only the truth. It's my clients that have my loyalty.
Source(s):
Realtor and Loan Officer in San Diego. Website http://www.danmelson.com
Not sure if this would help. Usually, a housing market correction last for years. It is unlikely things will brighten up in a few months, afterall, this bubble took 5 years for form.
It might be better to give some discount so you unload the house quickly and can use the gain of the home to make money elsewhere quickly. At the same time, you will save money by not paying mortgage for the next 5 months.
For example, if mortgage is $2500/mo. and you have $300,000 gain sitting in the house, by selling it now rather than 5 months later will save you $12500. It will also earn you as much as $7000 from interests (Assuming CD are paying 5.5% or higher).
Total financial benefit for selling early would be $20,000. I would give buyer some discount just because of that.
Finally, keeping a house in selling condition is a lot of work. If your realtor does staging, it costs extra to rent furnitures. If you are living in the unit, it takes extra effort to keep it clean. So, sell it fast!
http://money.cnn.com/2006/09/08/real_est...
http://money.cnn.com/2006/09/05/real_est...
2006-09-14 06:58:33 · answer #2 · answered by (*)(*)(*) 2 · 0⤊ 0⤋
Not sure if this would help. Usually, a housing market correction last for years. It is unlikely things will brighten up in a few months, afterall, this bubble took 5 years for form.
It might be better to give some discount so you unload the house quickly and can use the gain of the home to make money elsewhere quickly. At the same time, you will save money by not paying mortgage for the next 5 months.
For example, if mortgage is $2500/mo. and you have $300,000 gain sitting in the house, by selling it now rather than 5 months later will save you $12500. It will also earn you as much as $7000 from interests (Assuming CD are paying 5.5% or higher).
Total financial benefit for selling early would be $20,000. I would give buyer some discount just because of that.
Finally, keeping a house in selling condition is a lot of work. If your realtor does staging, it costs extra to rent furnitures. If you are living in the unit, it takes extra effort to keep it clean. So, sell it fast!
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
2006-09-14 05:05:58 · answer #3 · answered by Price is what you pay for value. 3 · 1⤊ 0⤋
Trying to skimp on the service is like sabotaging your own car, or shooting your own horse.
Yes, listing agents cost money, and if you want buyers to come look at your property, you won't stint the buyer's agent either. They are, after all, the ones who are most likely to bring buyers to you. That listing agent is the pro who will work to publicize your property and find you buyers, and putting a discount agent, even if they're luck enough to find you a buyer, up against a full service buyer's agent is dumb. You save 1% on the fee, and lose five times that on the final price.
People think they're being smart by saving on those "wasted commissions", and if you're lucky and a good buyer's agent decides you're property is worth their clients time, you'll only get nailed in negotiations. If a real shark finds you first, watch out.
In a gonzo seller's market it makes a certain amount of sense to go cheap, although even there the people who go full service will end up with more money. The market we're in right now is a buyer's market, and trying to sell profitably when there are 40 sellers per buyer is a hard enough row to hoe when you have someone who knows what they're doing. Try and do it alone, and the real estate sharks will get you.
I'm a buyer's specialist. Try to sell without a good pro on your side, and my clients, or those of somebody like me, will be made very happy by that decision. Yes, it's mean. But to you, I owe only the truth. It's my clients that have my loyalty.
2006-09-14 02:53:47 · answer #4 · answered by Searchlight Crusade 5 · 0⤊ 1⤋
Don't use a realtor. List it on one of the FSBO websites. Make sure to list your asking price and the complete address and your contact info. With those three items, a person can find out about anything they want to know about your house. Then only serious buyers will call you.
BTW, if your house is in Las Vegas or Phoenix area, I may buy it.
2006-09-14 03:12:21 · answer #5 · answered by arizona wolfman 5 · 0⤊ 0⤋
Get a good real estate agent! They will make sure you get top dollar and show your house a lot. You could try and sell it yourself by placing a classified ad in your local paper, putting a for sale by owner sign out etc. but t WILL take a lot longer and you probably are not going to be able to get top dollar for your home...Real Estate agents know what they are doing and will help you along the way because it's how they make their living!
2006-09-14 02:24:34 · answer #6 · answered by MeInUSA 5 · 1⤊ 1⤋
All you really need is a lawyer that can handle the paperwork. List it on craigslist or something, that's what my folks did. It is much less humbug to go through a realtor which is what you are paying for.
2006-09-14 02:26:28 · answer #7 · answered by alwaysmoose 7 · 0⤊ 0⤋
You can log on to any property selling website and post your property there, that way buyers will directly contact you and you don't have to pay anything to the realtor.
2006-09-14 05:33:18 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Eliminate the realator or get a new one privatly at a lesser rate yethigher than they are getting paid from the real esate co
2006-09-14 02:29:12 · answer #9 · answered by Double Bubble 2 · 1⤊ 0⤋
Make a website of it you will reach more people with it who like to move to your city.
2006-09-14 02:24:24 · answer #10 · answered by Chantal D. 6 · 0⤊ 0⤋