Cost of a realtor (Denver: flat fee, sale, real estate)

[tulips&roses]

If a person were to sell a house that cost ~300,000-320,000 and buy another house for about 675,000, how much would the realtor fees be? Are they negotiable?

[2bindenver]

Sure Realtor commissions are negotiable (Federal Law)

In most areas the Seller agrees to pay the fee to the listing brokerage. The listing brokerage agrees to share that fee upon successful sale through a cooperative agreement with the members of the local MLS.

Sometimes, the buyer wants to pay their agent separately (hourly, flat fee, a percentage of the purchase price, a bonus....) and the brokerage is instructed to reject the coop offered in MLS.

[tulips&roses]

Thanks. What's the standard rate? We were originally planning to move to TX sometime in the next year, but that may be put on hold for 3-5 yrs. now, so we're trying to decide if we want to go ahead and buy a larger house (we currently live in a townhome) and just need an idea of the fees/etc. we would be paying.

[2bindenver]

Originally Posted by lovetntx

Thanks. What's the standard rate? We were originally planning to move to TX sometime in the next year, but that may be put on hold for 3-5 yrs. now, so we're trying to decide if we want to go ahead and buy a larger house (we currently live in a townhome) and just need an idea of the fees/etc. we would be paying.

There is no such thing as *the standard rate* real estate commissions are negotiable.

First consider what you need (marketing, advice, transaction management) then consider the level of service you would want. Then figure what you would offer as incentive to the brokerage that procure the buyer.

Also it might be a good idea to check out what your competition is paying the buyers broker (it is published in MLS) and depending on how motivated you are...offer more.

I wouldn't sell and buy if you are seriously considering relocating to Texas. Moving twice in 3 years would not be fun.

Denver is in a market where marketing (to both Realtors with buyers and unrepresented buyers) and advise are key factors in getting an offer through to closing. You can find MLS entry only for free to full VIP type service for 7-8% including a generous coop fee...and everything in between.

[OutOfSoCal]

Not sure about there but here only the seller pays the fees. If you're buying you will pay closing cost but no commissions to the realtor. When you sell you get hit with those.

On a related not do they have escrow companies in CO or do they use lawyers?

[2bindenver]

We don't typically use escrow companies or attorneys. We close at time of signing and funding happens the same day. No funds, no closing.

Our real estate contracts to list or purchase comes from the state's real estate commission, and are in plain language.

Most folks skip the attorney, their prerogative. But, I counsel my clients that if the other side has an attorney, you should too. If your deal is complicated, or combative...I would recommend you consider hiring a real estate attorney.

[OutOfSoCal]

Originally Posted by 2bindenver

We don't typically use escrow companies or attorneys. We close at time of signing and funding happens the same day. No funds, no closing.

Our real estate contracts to list or purchase comes from the state's real estate commission, and are in plain language.

Most folks skip the attorney, their prerogative. But, I counsel my clients that if the other side has an attorney, you should too. If your deal is complicated, or combative...I would recommend you consider hiring a real estate attorney.

WOW so I come like a house it funds the same day I sign the contract ? the money is NOT put in an escrow acct?

I an Cali so if you sign today it won't fund for usually 30-45 days and then you still have 3 days to back out after that.

[formercalifornian]

Originally Posted by OutOfSoCal

WOW so I come like a house it funds the same day I sign the contract ? the money is NOT put in an escrow acct?

I an Cali so if you sign today it won't fund for usually 30-45 days and then you still have 3 days to back out after that.

What are you trying to say? Your statement doesn't make any sense at all.

[2bindenver]

Originally Posted by OutOfSoCal

WOW so I come like a house it funds the same day I sign the contract ? the money is NOT put in an escrow acct?

I an Cali so if you sign today it won't fund for usually 30-45 days and then you still have 3 days to back out after that.

No. You make an offer. Once it is accepted, your earnest money is deposited, you go through all the contingencies and it funds the day you close. Closing is where you sign all the real estate and loan documents.

In Denver, the buyer gets occupancy after closing, vacant houses same day, occupied houses usually a day to three after.

[yukon]

Isn't the earnest money placed in an escrow account until closing?

Hiring a real estate attorney is especially wise if you are buying from the owner with no realtor involved. Here in FL, there are required disclosure forms and often the buyer doesn't realize the seller is obligated to provide those forms (and of course the seller doesn't), and the buyer doesn't find that out until it's too late - as in after the sale when the first major problem pops up. Surely Colorado has some disclosures designed to protect the buyer?

I don't particularly care for attorneys in general, but I do think a good real estate attorney is worth his/her weight in gold.