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Started By
Message
re: Selling your house yourself
Posted on 4/29/16 at 12:15 pm to JonTheTigerFan
Posted on 4/29/16 at 12:15 pm to JonTheTigerFan
quote:
I've always wondered why realtors get a percentage. Is there really that much more work involved in selling a $350k house than there is a $200k house to justify them making $9,000 more for the transaction?
I kind of feel like this isn't the right comparison, that you shouldn't look at it with a 350k house vs a 200k house.
Instead you should look at it as, this house being sold by some schmuck realtor would go for 350k, but a good one can pull 375k.
Of course, at that point you got to ask yourself, can you do as well as the schmuck and get 350k yourself and is it worth it to get a realtor who can sell for 25k more but will take most of that as commission? Do you have the time to sit on the house or want it sold in a week, etc.
I had no qualms using a realtor to sell the house I currently have listed. I had to move in 5 weeks and put the house on sale, and also time the sale with me being out of state. It was under contract a week after I left it. No way I could do that myself with everything else going on, so realtors still have their uses.
This post was edited on 4/29/16 at 12:17 pm
1
Posted on 4/29/16 at 1:39 pm to LSUAfro
quote:
Find similar homes in your area and see what they sold per Square foot. That's a good start.
not a good plan. This is far and away the most overrated number when determining the value of a house. Appraisers don't use it, lenders don't notice it, builders seem to be the only ones who care about it, as it determines how much profit they make. Once that first sale is done, this number is irrelevant going forward. Just because a house sold for X/sq foot and it is on your street does not make it a comp. In fact, that number is not directly proportional, the larger the house is, the less the number moves. If a 2000 sq ft house is worth 100/sq foot, it is absolutely logical that the 1900 sq ft house next door could be worth 150/ sq ft OR 50/sq ft. Either way, the price per sq doesn't have much credibility. I hear all the time "but 4 houses in my neighborhood sold for $30 more per sq foot" and you know what the typical, and acceptable response from all appraisers, and lenders is?..... So
Posted on 4/29/16 at 1:55 pm to Helmethead
so you think a pre-appraisal to sell is a good idea?
Posted on 4/29/16 at 2:29 pm to Teddy Ruxpin
quote:
I had no qualms using a realtor to sell the house I currently have listed. I had to move in 5 weeks and put the house on sale, and also time the sale with me being out of state
This would be one of the only times I would use a realtor to sell.
quote:
It was under contract a week after I left it. No way I could do that myself with everything else going on, so realtors still have their uses.
Out of curiosity, why not? Who brought the buyer in? Your realtor or theirs?
This post was edited on 4/29/16 at 2:41 pm
Posted on 4/29/16 at 2:33 pm to Helmethead
quote:
not a good plan.
I think it is in many instances. And I can point you to an endless list of neighborhoods where comps are similar per sq ft for updated homes and not updated homes.
quote:
That's a good start.
Which is why I ended with this. It's a good start. Lot size/additions to home/updates etc. Of course they all matter. But you can look in your area at houses with similar features and get a general idea of what you can expect to get. What the hell do you think a realtor is doing? You think these people became master appraisers after 90 hours of school where they used flash cards to remember real estate terms and basic real estate contract law?
It takes doing some digging and some homework if you're not familiar with real estate, but it sure isn't that difficult to come up with a good estimate. Start on the high side and the market will dictate from there.
This post was edited on 4/29/16 at 2:41 pm
Posted on 4/29/16 at 2:48 pm to Helmethead
quote:
not a good plan. This is far and away the most overrated number when determining the value of a house. Appraisers don't use it, lenders don't notice it, builders seem to be the only ones who care about it, as it determines how much profit they make. Once that first sale is done, this number is irrelevant going forward. Just because a house sold for X/sq foot and it is on your street does not make it a comp. In fact, that number is not directly proportional, the larger the house is, the less the number moves. If a 2000 sq ft house is worth 100/sq foot, it is absolutely logical that the 1900 sq ft house next door could be worth 150/ sq ft OR 50/sq ft. Either way, the price per sq doesn't have much credibility. I hear all the time "but 4 houses in my neighborhood sold for $30 more per sq foot" and you know what the typical, and acceptable response from all appraisers, and lenders is?..... So
It's a good start for a non real estate agent. You can guesstimate based on pictures of Apple to Apple rooms in similar sq ft homes to dial that number in closer to reality. I have a tool that uses an algorithm to determine value based on similar home with spec vs custom kitchen, en suite master bath, etc...that is based on what appraisers in our area use to determine value
Posted on 4/29/16 at 2:51 pm to ItNeverRains
quote:
ItNeverRains
I apologize for coming off offensive towards Realtors. I've just come across too many lazy ones who rope sellers in to contracts and don't do much of anything.
Posted on 4/29/16 at 2:55 pm to Helmethead
quote:
Appraisers don't use it,
Are you claiming that appraisers don't use price per SF on comps? It's a field on the standard form even.
Posted on 4/29/16 at 2:59 pm to LSUAfro
I'm still trying to figure out the use for realtors. I sold my first house in a week on my own. Buyer didn't have an agent. We agreed on price, I wrote the contract and she took it to her bank. Did the exact same thing with the seller of the house I bought. Agreed on price and I wrote contract and took it to my bank.
What paperwork do realtors push through, exactly? Why would I pay the buyer's realtor 3% if I'm the one selling it?
Also curious about the pre-appraisal. When I bought my house, the appraisal came back $5,000 lower than what we on because the appraiser said it was like 35 sq. ft. less than what the seller had it listed for. Seller came down off the price after I threatened to walk but I don't know if the appraiser he used when he bought it a few years ago measured a different sq. footage or what. I need to at least get the measurements.
What paperwork do realtors push through, exactly? Why would I pay the buyer's realtor 3% if I'm the one selling it?
Also curious about the pre-appraisal. When I bought my house, the appraisal came back $5,000 lower than what we on because the appraiser said it was like 35 sq. ft. less than what the seller had it listed for. Seller came down off the price after I threatened to walk but I don't know if the appraiser he used when he bought it a few years ago measured a different sq. footage or what. I need to at least get the measurements.
Posted on 4/29/16 at 3:21 pm to LSUAfro
quote:
I apologize for coming off offensive towards Realtors. I've just come across too many lazy ones who rope sellers in to contracts and don't do much of anything.
No worries. There are some horrible ones. I'm working a deal with one that on our repair proposal she CC'd me on the email to her client and told client they needed to meet all our demands. Hung him out to dry, which is deplorable representation IMO. Glad for my buyers, but stuff like that gives guys like you well deserved ammo against us.
This post was edited on 4/29/16 at 3:33 pm
Posted on 4/29/16 at 3:37 pm to LSUAfro
quote:
Out of curiosity, why not? Who brought the buyer in? Your realtor or theirs?
Way too much going on. I was already doing a bunch of painting and fixing up of the place leading up to the sale while working. I was also coordinating the move and securing the rental that we were moving too.
If I had to also go out and hire a professional photographer, make the listing, pull comps and all that I would have offed myself.
In the future if I have more time I'd explore doing it myself.
Eta: I also got a recommendation on one of the supposedly better realtors in New Orleans. Got a little over ask after listing for 3 days and 1.5 days of showings that I would have had to fly back home to do myself. I think he has his system in place which makes it look easier than it would have been for me to do it.
This post was edited on 4/29/16 at 3:41 pm
Posted on 4/29/16 at 8:10 pm to ItNeverRains
quote:
No worries. There are some horrible ones.
Just like any industry there can be quite the variance in talent and worth, but the relative ease of barrier to entry for RE agents makes that industry gap wider than most. I just had two very terrible experiences with family in the last two years leaving a bad taste in my mouth.
Posted on 4/30/16 at 12:23 am to LSUAfro
Talking about paying for appraisal to determine price to ask to sell FSBO... Why not call 2 or three realtors and act like you might list it with them. They come over and give you an idea what they would list your house for. You are under no obligation to list it with them. Just use them to get better idea what it's worth.
Posted on 4/30/16 at 7:52 am to Hankg
quote:
Talking about paying for appraisal to determine price to ask to sell FSBO... Why not call 2 or three realtors and act like you might list it with them. They come over and give you an idea what they would list your house for. You are under no obligation to list it with them. Just use them to get better idea what it's
See guys, it's not just realtors who are bloodsucking leeches.
But I appreciate the honesty.
Posted on 4/30/16 at 3:12 pm to will1883
quote:
I can't tell you how many have called me wanting to "pre-screen" my house for a buyer they have that is "very interested," only to find out that all they wanted to do was list the property themselves....
This. I recently sold one myself. Some realtors down right berated us for selling by owner.
Posted on 4/30/16 at 3:29 pm to will1883
Create a Facebook page about your house, then make a post with pictures and boost the post. You can determine the age range and location(s) of where your ad will be displayed on other facebook newsfeeds.
Posted on 4/30/16 at 3:43 pm to purpngold
**Update** (and typical realtor story)
So a realtor, who has contacted me saying that she has a prospective buyer, sends me a form to sign saying that I'll pay her 3% commission if she brings a buyer. Here's the crazy part. She asked me to go up on the asking price to cover her commission, some closing costs, and a home warranty. She also told me not to budge much with this particular buyer. She knows the buyer and she thinks they will want the house because they almost bought a very similar one down the road and this one's nicer.
I'm excited about possibly making more on the house than I originally intended, but how would you like it if you, as a buyer, had a realtor that was asking sellers to go up on the price. I know I would be pissed.
So a realtor, who has contacted me saying that she has a prospective buyer, sends me a form to sign saying that I'll pay her 3% commission if she brings a buyer. Here's the crazy part. She asked me to go up on the asking price to cover her commission, some closing costs, and a home warranty. She also told me not to budge much with this particular buyer. She knows the buyer and she thinks they will want the house because they almost bought a very similar one down the road and this one's nicer.
I'm excited about possibly making more on the house than I originally intended, but how would you like it if you, as a buyer, had a realtor that was asking sellers to go up on the price. I know I would be pissed.
Posted on 4/30/16 at 5:29 pm to will1883
quote:
**Update** (and typical realtor story) So a realtor, who has contacted me saying that she has a prospective buyer, sends me a form to sign saying that I'll pay her 3% commission if she brings a buyer. Here's the crazy part. She asked me to go up on the asking price to cover her commission, some closing costs, and a home warranty. She also told me not to budge much with this particular buyer. She knows the buyer and she thinks they will want the house because they almost bought a very similar one down the road and this one's nicer. I'm excited about possibly making more on the house than I originally intended, but how would you like it if you, as a buyer, had a realtor that was asking sellers to go up on the price. I know I would be pissed.
Thats awful. You should report her to her local association and she should lose her license, but you may not want to kill your sale which I understand.
If I have an exclusive buyer representation agreement in place and my client wishes to go after a property not offering compensation, I will let them know they are responsible for my fees. If they would like to include that in the purchase price non contingent on appraisal I give them the option, but that is all full disclosure and after the negotiation to get them the best deal possible.
I have done a few deals in Louisiana and Alabama, I do not doubt any shady realtor story i've heard from either state.
Posted on 4/30/16 at 5:40 pm to will1883
Wow, that's so unethical on her part I don't even know where to start
Posted on 5/1/16 at 8:18 am to Civildawg
Increasing the sales price for closing costs and home warranty is not unethical at all and highly openly discussed during negotiations.
Now bumping the sales price so agent can make more $ is lol. Not really hurting you, but forcing her client to pay more is not right for her personal gain. That's wrong.
Now bumping the sales price so agent can make more $ is lol. Not really hurting you, but forcing her client to pay more is not right for her personal gain. That's wrong.
This post was edited on 5/1/16 at 8:19 am
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