[M Adri]

I have a condo in Northville that I would like to sell but do not want to pay the 6% commission. How legitimate are these "I Buy for Cash" kind of offers? If they are legit, does anyone know of a good reputable place? I'm trying to sell my condo by myself and then, if I'm not so lucky, use an agent. The condo is actually in a very good shape, less than 10 years old, very nice...My husband and I loved the place but his job got relocated. Thanks!

[AdemH]

Doesn't hurt to call the number and see what's up. It's usually a flipping or wholesaling company. They'll come check out the property and run the numbers to see if they can make money on it.

[zthatzmanz28]

Generally they come in around 60%--75% of value? depends on how quick they think it will turn over.

But why would it be easier to sell at a bigger percentage loss than use a realtor? 6% is a whole lot less than 10%--35% to a CASH FOR HOMES flipper...

You can even negotiate with the real estste agent to list at a lower rate---like 4%.

[wrema]

Be a real estate agent yourself.

[magellan]

Originally Posted by zthatzmanz28

Generally they come in around 60%--75% of value? depends on how quick they think it will turn over.

But why would it be easier to sell at a bigger percentage loss than use a realtor? 6% is a whole lot less than 10%--35% to a CASH FOR HOMES flipper...

You can even negotiate with the real estste agent to list at a lower rate---like 4%.

Exactly. Although 4% is pretty low. The other side (the buyer's agent) is pretty much assured 3%, so I don't know a lot of Realtors willing to work for 1% (which then usually gets split with their broker).

[magellan]

Originally Posted by M Adri

I have a condo in Northville that I would like to sell but do not want to pay the 6% commission. How legitimate are these "I Buy for Cash" kind of offers? If they are legit, does anyone know of a good reputable place? I'm trying to sell my condo by myself and then, if I'm not so lucky, use an agent. The condo is actually in a very good shape, less than 10 years old, very nice...My husband and I loved the place but his job got relocated. Thanks!

What are some strategies you've come up with for selling it yourself?

[jackmichigan]

Originally Posted by M Adri

I have a condo in Northville that I would like to sell but do not want to pay the 6% commission. How legitimate are these "I Buy for Cash" kind of offers?

While they may be "legitimate", they will usually only offer you a fraction of the price--certainly a greater discount than any commission charge. While I encourage people to try to sell on their own, the fact remains that most housing is sold through agents...and most homes sold through agents tend to command a higher price. You may be able to find a buyer but, oftentimes, purchasers of For-Sale-By-Owner (FSBO) will attempt to negotiate a significantly lower price to grab any "savings". That might be fine if you're comfortable with and capable of handling the sale on your own. Some people don't want the aggravation--even though hiring an agent will be no guarantee that there won't be some.

If you do happen to find a buyer at an acceptable price (make sure you know the true market value as best you can), you could probably save money by hiring a qualified real estate attorney to handle the closing. The biggest problem I see with many FSBOs is that the owners do not really know what their place is worth. Many will overprice it--preventing a sale within a reasonable length of time--or they will underprice it and receive less than market value. Try to thoroughly research sale prices in your area. Does the condo association keep track of sales? You could also check with the local assessor since they receive reports and prices of all property transfers. (Don't rely on list prices or tax assessment values.)

Another option is to pay an agent to merely have your property advertised on multi-list (without a listing agreement with an agent). You could even offer a buyer's agent 2 or 3% if they bring you a buyer. And although many people are wary of Craigslist because of all of the scams, I have found that Craigslist can be a good place to advertise.

Again, if you decide to try to sell on your own and find a buyer, it would be advisable to retain a qualified real estate attorney to handle the transaction. Good luck.

[dave w]

I sold my condo myself by listing on craigslist, I was always getting calls on it. I sold it by holding a open house along with scheduled viewing appointments on the same days. Know your comps in the area and if the house is clean and desirable it will sell itself. Especially in this market.The title company did all the paper work and ended up being an easy transaction.

[zthatzmanz28]

Originally Posted by dave w

I sold my condo myself by listing on craigslist, I was always getting calls on it. I sold it by holding a open house along with scheduled viewing appointments on the same days. Know your comps in the area and if the house is clean and desirable it will sell itself. Especially in this market.The title company did all the paper work and ended up being an easy transaction.

Did you pay the title company?

Originally Posted by jackmichigan

Again, if you decide to try to sell on your own and find a buyer, it would be advisable to retain a qualified real estate attorney to handle the transaction. Good luck.

I know as a buyer, I am not spending any money for a real estate deal. What does a good attorney cost>?

[jackmichigan]

Originally Posted by zthatzmanz28

Did you pay the title company?

I know as a buyer, I am not spending any money for a real estate deal. What does a good attorney cost>?

In Michigan, it is customary for the Seller to pay for a title insurance policy to assure to the buyer that good and marketable title is being conveyed. As part of their process of insuring good title, the title company will do a title search and note all encumbrances, easements and outstanding property taxes--as well as all deficiencies in the title which need to be cleared up in order for a Warranty Deed (primarily) to be conveyed to the purchaser.

If certain items cannot be cleared up or removed (such as existing easements, etc.) those items will usually be listed as exceptions to the title policy--meaning they will not be covered under the title insurance policy. It is important for purchasers to pay special attention to the listed exceptions--and it is very important for purchasers to have legal counsel in reviewing the exceptions and in reviewing the title policy or anything else that is not fully understood.

It is much cheaper to pay for a qualified real estate attorney to help you avoid problems...than it is to pay for an attorney to try to fix problems from a bad transaction.

Regarding attorneys, I realize that a lot of people, myself included, don't want the extra expense, but a good attorney can really be helpful--and even essential--under some circumstances. While it's generally more important from the buyer's perspective to engage the services of an attorney (the Seller may get their money regardless), as a real estate broker I generally recommend that it's advisable for people to retain their own legal counsel.

Originally Posted by zthatzmanz28

I know as a buyer, I am not spending any money for a real estate deal.

Well, as a buyer, you're spending a heck of a lot of money for a real estate deal. Don't be penny-wise and pound foolish.