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SVTPerformance's Chain of Restaurants
Road Side Pub
Negotiate Real Estate Commission?
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<blockquote data-quote="slider701" data-source="post: 7762698" data-attributes="member: 50443"><p>Here is my $0.02 worth of opinion..........from some background I have been trying to sell my house in the Detroit area for 18+ months. </p><p></p><p>I started out FSOB for 3 months because I wanted to be cheap and thought that I could do all the marketing work myself by e-mailing local agents, flyers, Craigslist, and for sale by owner signs at busy intersections near my house. All I got was agents calling me trying to sign me up and telling me they wouldn't bring anyone through without listing with them, crackheads and section 8 welfare moms calling from CL wanting to rent, and the city tearing my signs down (this got expensive to keep buying signs)</p><p></p><p>Then I moved on to my sister-in-law.....a very good agent who was now working part time at a bar because the Detroit market was so bad. She was doing it for 4% (1% to her and 3% to a buyer's agent). I did most of marketing, building virtual tours for her, and getting frustrated because her second job was getting in the way of showing the house and doing the things a full time agent would do. After 9 months with her I moved on to a full time agent creating WWIII in my family between my wife and her sister.</p><p></p><p>Immediately with a full time agent and listing it at 7% (3% for my guy and 4% for a buyer's agent) I got 20+ showing in a matter of a month or two. Unfortunately at this point my house was worth significantly less than what I had owed because of the downward spiraling market and I was forced into a short sale to get out of the house....delaying the process even further. Hopefully the deal with my buyer will be finalized in the next week or two and one of the most stressful events in my life will finally be over.</p><p></p><p>The bottom line with Realtors is that it is an old-school good old boys network and if you are not participating with them they just won't show your house.</p><p></p><p>A 4% listing will give 1% for your guy and 3% to the buyer's agent....this is the absolute minimum that will get you another agent to bring a buyer into your house. Generally your own agent will do little to no marketing, put it on the MLS and on their company web site with only one picture, and if they do show a customer your house they will most likely steer them to a different property they have listed to get a higher commission (this advise is directly from my agent)</p><p></p><p>A 5% listing will give you a 2%/3% split and yield little more than a 4%. A 6% will get you in the game with 10K+ other guys trying to sell their houses in this horrible market.</p><p></p><p>A 7% will give your guy 3% and a buyer's agent 4%..........a better incentive for them to show your house over the guy's down the street.</p><p></p><p>It all comes down to how long you can afford to leave it on the market. If you have a $150K house with a $1000 a month mortgage payment every month extra it is on the market will cost you another $1000 of mortgage payments. 1% commission is $1500, 2% is 3000, 3% is $4500. Most sales are averaging 6-9-12 months depending on market you are in. Trying to be cheap on a commission will add another 3-6 or more months. An extra 6 months adds up to 6K in mortgage plus probably another $1500 in fees like utilities and upkeep on the property if you are not living in the house any more. Tack that 6 months on to a normal 6 months of "time listed" and it quickly blows past what an extra 2% or 3% would cost you.</p><p></p><p>If I had just bit the bullet right away, listed with top notch agent, paid the 7% I would of probably got close to my asking price. Instead I was cheap, chased the downward spiral of pricing going down and after 18 months I am finally selling my house at a 100K loss on a short sale that has essentially destroyed my credit.</p><p></p><p>Of course if you're not in a hurry or need to move and can afford to ride out the storm and wait for some magical buyer to appear through your adds in Craigslist or at the local supermarket..........go for the FSOB route.</p><p></p><p>Just prepare yourself for one of the biggest stress events you have ever experienced in your life.</p></blockquote><p></p>
[QUOTE="slider701, post: 7762698, member: 50443"] Here is my $0.02 worth of opinion..........from some background I have been trying to sell my house in the Detroit area for 18+ months. I started out FSOB for 3 months because I wanted to be cheap and thought that I could do all the marketing work myself by e-mailing local agents, flyers, Craigslist, and for sale by owner signs at busy intersections near my house. All I got was agents calling me trying to sign me up and telling me they wouldn't bring anyone through without listing with them, crackheads and section 8 welfare moms calling from CL wanting to rent, and the city tearing my signs down (this got expensive to keep buying signs) Then I moved on to my sister-in-law.....a very good agent who was now working part time at a bar because the Detroit market was so bad. She was doing it for 4% (1% to her and 3% to a buyer's agent). I did most of marketing, building virtual tours for her, and getting frustrated because her second job was getting in the way of showing the house and doing the things a full time agent would do. After 9 months with her I moved on to a full time agent creating WWIII in my family between my wife and her sister. Immediately with a full time agent and listing it at 7% (3% for my guy and 4% for a buyer's agent) I got 20+ showing in a matter of a month or two. Unfortunately at this point my house was worth significantly less than what I had owed because of the downward spiraling market and I was forced into a short sale to get out of the house....delaying the process even further. Hopefully the deal with my buyer will be finalized in the next week or two and one of the most stressful events in my life will finally be over. The bottom line with Realtors is that it is an old-school good old boys network and if you are not participating with them they just won't show your house. A 4% listing will give 1% for your guy and 3% to the buyer's agent....this is the absolute minimum that will get you another agent to bring a buyer into your house. Generally your own agent will do little to no marketing, put it on the MLS and on their company web site with only one picture, and if they do show a customer your house they will most likely steer them to a different property they have listed to get a higher commission (this advise is directly from my agent) A 5% listing will give you a 2%/3% split and yield little more than a 4%. A 6% will get you in the game with 10K+ other guys trying to sell their houses in this horrible market. A 7% will give your guy 3% and a buyer's agent 4%..........a better incentive for them to show your house over the guy's down the street. It all comes down to how long you can afford to leave it on the market. If you have a $150K house with a $1000 a month mortgage payment every month extra it is on the market will cost you another $1000 of mortgage payments. 1% commission is $1500, 2% is 3000, 3% is $4500. Most sales are averaging 6-9-12 months depending on market you are in. Trying to be cheap on a commission will add another 3-6 or more months. An extra 6 months adds up to 6K in mortgage plus probably another $1500 in fees like utilities and upkeep on the property if you are not living in the house any more. Tack that 6 months on to a normal 6 months of "time listed" and it quickly blows past what an extra 2% or 3% would cost you. If I had just bit the bullet right away, listed with top notch agent, paid the 7% I would of probably got close to my asking price. Instead I was cheap, chased the downward spiral of pricing going down and after 18 months I am finally selling my house at a 100K loss on a short sale that has essentially destroyed my credit. Of course if you're not in a hurry or need to move and can afford to ride out the storm and wait for some magical buyer to appear through your adds in Craigslist or at the local supermarket..........go for the FSOB route. Just prepare yourself for one of the biggest stress events you have ever experienced in your life. [/QUOTE]
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