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lesmiles13 
LSU Fan
Member since Aug 2008
665 posts
| FSBO vs Realtor (Posted on 2/7/13 at 12:04 am)
The background is we have been in our house for just 18 months and need to relocate in April. I don't mind paying the mortgage and renting in this new location for about 3-5 months.
Would like to sale as quickly as possible and maximize profits
Housing market in this area has come up. I really don't want to pay realtor fees.
What other information would you need?
Are realtor commission rates negotiable?
Based on. Y research realtor houses sale much faster
Thanks
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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
4581 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 5:23 am to lesmiles13)
You could fsbo until April and then get a realtor when you move. Yes, some realtors will cut their commission, but you usually get what you pay for. Doesn't mean they can't or won't sell your house. I would advise renting unless the area being relocated is familiar or you.
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nolanola
Member since Nov 2010
3215 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 7:05 am to lesmiles13)
You can also pay to have your house listed in the MLS even if you are FSBO. To me that always sounds like a good idea. The people I bought from were FSBO and were MLS listed, that is how I found it. The transaction was so much easier and faster without a Realtor involved.
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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
4581 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 7:49 am to nolanola)
quote:
You can also pay to have your house listed in the MLS even if you are FSBO. To me that always sounds like a good idea. The people I bought from were FSBO and were MLS listed, that is how I found it. The transaction was so much easier and faster without a Realtor involved.
You can do this as well. The transaction being easier and faster without a realtor is of course absolutely incorrect.
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DieSmilen 
Southeastern LA Fan
My Rubbermaid Desk
Member since Dec 2007
1184 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 8:02 am to ItNeverRains)
There are pros and cons for both. I have seen some fsbo listings offer 3,000-5,000 commission to a buyer’s agent, in hopes of not scaring away a buyer who is already under a buyer brokerage agreement. I also believe you price you home right to begin with you can make it work without an agent.
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dagrippa
LSU Fan
Saigon
Member since Nov 2004
1429 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 8:13 am to lesmiles13)
quote:
Would like to sale as quickly as possible and maximize profits
I wouldn't expect to make a profit after living there only 18 months. Maybe I'm wrong.
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bryso 
Clemson Fan
The Real Death Valley
Member since Dec 2006
26768 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 9:14 am to lesmiles13)
quote:
Would like to sale as quickly as possible and maximize profits
i love that people think home values always go up
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donRANDOMnumbers 
SW Missouri State Fan
Lafayette Rouge
Member since Nov 2006
9709 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 10:08 am to lesmiles13)
do it with FSBO and list is on MLS with them. that's what i did and i've got a lot of looks.
also it will drastically reduce your price point because you don't have to pay a selling realtor 3%, and you might get lucky and do the sell directly with the customer and not have to pay the buying realtor 3%.
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jojothetireguy 
New Orleans Saints Fan
Live out in Coconut Grove
Member since Jan 2009
8450 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 11:18 am to lesmiles13)
i am in the middle of selling mine now that was listed through FSBO. Ours has been on the market for about 6 months. Two more homes came up in my neighborhood using a realtor at 6K higher than mine. I called my realtor that i plan on using for my next purchase and asked what she thought about me raising my price. She said to raise it to cover the commission and add to the listing that we would be willing to pay a buyer agent 2%-2.5%. This was last friday. I changed the listing friday night and had two realtors call saturday morning. They came look Sunday at around 11:00. Offer was made at 1:00 on sunday and house is pending sale. So what i'm saying is when you don't welcome agents, you limit the pool of potential buyers. Be willing to work with an agen at 2% commission and just raise the price of your house to cover than expense.
This post was edited on 2/7 at 11:24 am
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Springlake Tiger
LSU Fan
Uptown
Member since Aug 2006
11788 posts
 Online
| re: FSBO vs Realtor (Posted on 2/7/13 at 11:46 am to lesmiles13)
quote:
been in our house for just 18 months
You will need to pay capital gains tax on any profit since you have not lived there for 24 months. The formula is pretty much below.
Original sales price less your sales price less selling costs that you pay at closing less realtor commission less any "permanent" improvements that you made to the home after you purchased it. The key is permanent, paint is not considered permanent. If that # is positive, you need to pay the tax.
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Janky
LSU Fan
Team Primo
Member since Jun 2011
2497 posts
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quote:
You will need to pay capital gains tax on any profit since you have not lived there for 24 months
Not if rolls the funds into another property.
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LSUGUMBO
New Orleans Saints Fan
Shreveport, LA
Member since Sep 2005
3804 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 12:25 pm to Janky)
quote:
Not if rolls the funds into another property.
I think you will still owe. We sold a house 5-6 years ago after living in it for 20 months, and had to pay taxes on the profits, even though we bought another house.
However, I don't think cap gains applies if you're moving a certain distance, or for work related purposes.
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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
7638 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 12:27 pm to LSUGUMBO)
Realtor will tell you that he wants to sell low to generate quick interest which means no maximization of profits.
I'd FSBO that beast, but that's me.
I've signed two contracts on two homes in less than a year, and both builders hated me. I've done a ton of mortgages in the past so I have all the info I need to take care of things. But YMMV in that department so perhaps a realtor is necessary.
In short, good luck, I have no opinion.
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Janky
LSU Fan
Team Primo
Member since Jun 2011
2497 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 12:35 pm to LSUGUMBO)
quote:
I think you will still owe
As far as I know when you do a 1031 exchange you are not taxed. It is a way to defer the taxes. However, there may be a holding period to qualify for the 1031 exchange.
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Springlake Tiger
LSU Fan
Uptown
Member since Aug 2006
11788 posts
Online
| re: FSBO vs Realtor (Posted on 2/7/13 at 12:46 pm to LSUGUMBO)
quote:
work related purposes
that is the key.
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VABuckeye 
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
8115 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 1:05 pm to GFunk)
quote:
Realtor will tell you that he wants to sell low to generate quick interest which means no maximization of profits
That's a pretty broad and unethical stroke you paint there.
My experience with FSBO buyers is that a lot of them are looking for under market deals. They know the seller is looking to cut Realtor fees out of the transaction and they are looking for those savings on their side of the deal.
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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
4581 posts
| re: FSBO vs Realtor (Posted on 2/7/13 at 1:13 pm to GFunk)
quote:
Realtor will tell you that he wants to sell low to generate quick interest which means no maximization of profits.
 to your dumbassery
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