I will be buying my parents' home. We'd like to ask the local realtor to handle all of the details. Should we offer a percentage of the sales price or a flat fee for this service? She won't need to list the house or negotiate anything and the financing won't be an issue, so three percent seems to be a bit much.
2006-10-29 00:37:15 · 5 answers · asked by Shane 5 in Business & Finance ➔ Renting & Real Estate
Great answers so far! I did want to add that the local realtor (tiny town) owns her own business, so she has a lot of flexibility. And we'll have so many other things going on at that time that I'd really prefer to let a pro handle the details.
2006-10-29 01:09:23 · update #1
You said you live in a small town. Then you can appreciate the "investment" in good relations by paying the full 3%. You may want to sell the house down the road, or even refinance or get a home improvement loan.
Either way, it goes far to not burn any bridges and to maintain friendly relations.
Good luck.
2006-10-29 02:50:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Honestly, if your parents is selling the home to you as their child the only thing you will need is an attorney not a Realtor. I would suggest you get a home inspection, and appraisal on the property. The rest is just for the lawyer and the Mortgagee who is financing the home for you.. No need to use a Realtor for this one regardless of where you are..
1 The attorney ensure the title is clear for sale and deals with the title company to make sure it is all good to sale and that there are no back liens or easements with the property.
2 The Bank Mortgagee ensures you have the credit to purchase and that the home value is worth what you are paying and they are financing.. The rest is foot work you will have to do regardless if you use a realtor or not...
A Realtor/ Broker responsibility is to procure a buyer who is willing and ready to purchase and procure a seller who is willing to sale and ensure the contract between them get to the correct entity ( attorney & lender) so things flow smoothly; once that is done there is no need for a Realtor. As in your case.. your parents are selling, you are buying and the financing is secure and I'm sure your parents are not worried about you bailing out of the deal. And I am sure you won't haggle you parents to sell to you for less because I'm sure they are selling it at perhaps a fair or below market value, if not the Lender will be sure to let you know..
But, if you are uncomfortable dealing with your parent(s) one on one I would suggest you get a realtor to negotiate for you with them, which at that point 3% is a fair rate, or half of what it would cost if the agaent/ Realtor was working for both buyer and sellers. Good luck and congrats on being a new home owner..
2006-10-29 10:02:04 · answer #2 · answered by Teetee 2 · 1⤊ 0⤋
Do a "For Sale by owner" Transaction. Eliminate the realtor in all. Only thing you worry about is Financing. Also there are plenty of Agents and Realtors that will take a flat fee of like $3k to $4k just to walk you through the Sales contract. Or if you are Internet Saavy, go to the DRE (Department of Real Estate) website and look up what you are going to need to finish the transaction in your state on your own.
2006-10-29 07:44:14 · answer #3 · answered by aukasted1 2 · 0⤊ 0⤋
Realtors work under a broker, and the broker sets the rules on commissions. They will probably want the full 3%.
You might consider calling a few title companies and see if they won't take care of this for you for a fee. Otherwise you should contact a real estate attorney to handle it.
2006-10-29 07:50:22 · answer #4 · answered by Alterfemego 7 · 0⤊ 0⤋
You don't need a Realtor. She'll just walk you into an escrow office or lawyer's office (whichever is the case in your state).
Regards
2006-10-29 16:02:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋