[JonathanLB]

Originally Posted by lvmensch

The overall peak on SFR was 315K in 2006. That is now at $295K. At the present appreciation it will hit $315K in March or April.

But you need to understand it is specific to the development and the model. For instance virtually every model in Sun City Summerlin below $300K is above the peak. High price ones not nearly so good... but they never dropped that much either.

And note that peak price does not get you out whole. You still have 8% of selling costs to deal with. And if you want to get into the time value of money you got a half dozen years before you break even.

Umm who are you using?! The rate is 6% not 8, never has been anywhere. I only pay 5, no issues finding agents happy to take the money. Redfin can do it for 4.

[lvmensch]

Originally Posted by JonathanLB

Umm who are you using?! The rate is 6% not 8, never has been anywhere. I only pay 5, no issues finding agents happy to take the money. Redfin can do it for 4.

Sorry LB but you are not paying attention. Closing cost is not just commissions. The total closing cost to the seller with a 6% commission will run around 8.25%. If you get a 5.5% commission it will run around 7.75%.

And Redfin will do 4.5% with a closing cost of 6.75%. But the last Redfin deal I dealt with they blew by about 2% so their actual cost was about 8.75%. Airics will argue he did better than that...but Airics is not a naive seller...he has I believe been licensed and has skills beyond the normal.

And be careful of deals where the seller wants the buyer to pay all transfer costs...in some places they can run up to 1.5%. Generally under 0.5% but not always.

[Tek_Freek]

We bought in May of 2014 for $245k. Redfin just sent me an email telling us that it is now worth $353K.

[airics]

Originally Posted by lvmensch

Sorry LB but you are not paying attention. Closing cost is not just commissions. The total closing cost to the seller with a 6% commission will run around 8.25%. If you get a 5.5% commission it will run around 7.75%.

And Redfin will do 4.5% with a closing cost of 6.75%. But the last Redfin deal I dealt with they blew by about 2% so their actual cost was about 8.75%. Airics will argue he did better than that...but Airics is not a naive seller...he has I believe been licensed and has skills beyond the normal.

And be careful of deals where the seller wants the buyer to pay all transfer costs...in some places they can run up to 1.5%. Generally under 0.5% but not always.

With this market, I offered no seller concessions what so ever

[JonathanLB]

Originally Posted by lvmensch

Sorry LB but you are not paying attention. Closing cost is not just commissions. The total closing cost to the seller with a 6% commission will run around 8.25%. If you get a 5.5% commission it will run around 7.75%.

And Redfin will do 4.5% with a closing cost of 6.75%. But the last Redfin deal I dealt with they blew by about 2% so their actual cost was about 8.75%. Airics will argue he did better than that...but Airics is not a naive seller...he has I believe been licensed and has skills beyond the normal.

And be careful of deals where the seller wants the buyer to pay all transfer costs...in some places they can run up to 1.5%. Generally under 0.5% but not always.

Oh I'm paying attention, I've sold 4 houses and condos, I have never paid closing costs on any of them, even during the recession. Buyer pays closing costs, not the seller, unless your agent sucks. And I've had 3 different agents, none of them sucked. Like airics said, no concessions for the buyer. I've never had to do that either in Los Angeles, Long Beach, Portland, or Beaverton. I've never even heard of the seller paying closing costs haha no thanks! If you don't want it, take a hike. I always sold above asking price on every place I've sold but the last, where I actually made the most money, so that was because I asked a lot for the last and still made a $135K gain. I was just greedy and wanted even more :P

PS: I think I found my dream home finally. It's a generous half acre lot, no HOA dues, and tons of natural light. That might be because of the minor fire damage, but nothing a coat of paint and a few 2x4 wouldn't fix: https://www.zillow.com/homes/for_sal...07_rect/10_zm/

[lvmensch]

Originally Posted by JonathanLB

Oh I'm paying attention, I've sold 4 houses and condos, I have never paid closing costs on any of them, even during the recession. Buyer pays closing costs, not the seller, unless your agent sucks. And I've had 3 different agents, none of them sucked. Like airics said, no concessions for the buyer. I've never had to do that either in Los Angeles, Long Beach, Portland, or Beaverton. I've never even heard of the seller paying closing costs haha no thanks! If you don't want it, take a hike. I always sold above asking price on every place I've sold but the last, where I actually made the most money, so that was because I asked a lot for the last and still made a $135K gain. I was just greedy and wanted even more :P

PS: I think I found my dream home finally. It's a generous half acre lot, no HOA dues, and tons of natural light. That might be because of the minor fire damage, but nothing a coat of paint and a few 2x4 wouldn't fix: https://www.zillow.com/homes/for_sal...07_rect/10_zm/

It is custom not law. In this area it is customary for the seller to pay half of escrow, the NV transfer tax, The Owner's Title Policy and HOA transfer fees. I have never seen a single exception to most of these though I have seen the payment of HOA transfer fees moved. It likely would not be possible in some deals with mortgages as the lender will not allow it. Other than that though it will simply result in a lower price from the buyer. There are also some fees from HOAs that may not be transferable to the seller. Money is of course fungible so These costs can be manipulated in the deal.

To a large degree it is all illusion. Those fees all come off the top of the transaction...so the seller pays them whether he thinks so or not.

Your lovely fixer upper is being sold well below the price of a nice vacant lot. That is for cause.

[Prosze]

Originally Posted by lvmensch

It is custom not law. In this area it is customary for the seller to pay half of escrow, the NV transfer tax, The Owner's Title Policy and HOA transfer fees. I have never seen a single exception to most of these though I have seen the payment of HOA transfer fees moved. It likely would not be possible in some deals with mortgages as the lender will not allow it. Other than that though it will simply result in a lower price from the buyer. There are also some fees from HOAs that may not be transferable to the seller. Money is of course fungible so These costs can be manipulated in the deal.

To a large degree it is all illusion. Those fees all come off the top of the transaction...so the seller pays them whether he thinks so or not.

Your lovely fixer upper is being sold well below the price of a nice vacant lot. That is for cause.

Yeah the lot itself is cheap huh, but the area is not good. Still, someone could always throw a manufactured home on it or something, right?

[WestieJeff]

lvmensch is spot on. Here in Clark County, paying "closing costs" typically refers to paying the buyer's loan fees or toward's the buyer's portion of escrow, etc. All the items below are typically paid by the seller.

While it would be possible to write the contract to offload all of these expenses to the buyer, I've never seen that done.

Real property transfer tax is approx 1/2% alone and typically paid entirely by the seller so yes ultimately the seller's selling costs are going to be a couple points more than the Realtor commissions.

Originally Posted by lvmensch

It is custom not law. In this area it is customary for the seller to pay half of escrow, the NV transfer tax, The Owner's Title Policy and HOA transfer fees. I have never seen a single exception to most of these though I have seen the payment of HOA transfer fees moved. It likely would not be possible in some deals with mortgages as the lender will not allow it. Other than that though it will simply result in a lower price from the buyer. There are also some fees from HOAs that may not be transferable to the seller. Money is of course fungible so These costs can be manipulated in the deal.

[airics]

Originally Posted by WestieJeff

lvmensch is spot on. Here in Clark County, paying "closing costs" typically refers to paying the buyer's loan fees or toward's the buyer's portion of escrow, etc. All the items below are typically paid by the seller.

While it would be possible to write the contract to offload all of these expenses to the buyer, I've never seen that done.

Real property transfer tax is approx 1/2% alone and typically paid entirely by the seller so yes ultimately the seller's selling costs are going to be a couple points more than the Realtor commissions.

All I paid was title insurance, transfer taxes, prorated utilities, and 4% real estate commission

[lvmensch]

Originally Posted by airics

All I paid was title insurance, transfer taxes, prorated utilities, and 4% real estate commission

You did not pay half of escrow? Have never seen anyone get out of that.

But actually you paid all of the escrow fee...The buyer may have put the money into escrow but you did not get it out. If one could actually work a private deal the only costs that would have to be paid would be the transfer tax. Practically though the escrow fee and title insurance are practical necessities.

Just closed one in Aliante where the HOA fees were the biggest I have seen. Couple of ground all in. And that is not duckable.