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He would have had to pay you $30600 so he would have pocketed 479400.
If he paid redfin 1% .......483000 minus 4830 = 478170
You would have saved him a whopping $1230
Your math is all wrong. I had him an offer in hand at $510 at a 6% commission. Redfin sold it 5 months later at $483 with a 4-4.5% commission. If he had taken my $510 at 6% he would have been ahead by about $17,000 over the final sales price. Redfin had to pay the Buyers agent their % so it was not the 1% you think.
Redfin did no marketing or open houses. They let it sit on the market and he had to dump the house.
It also cost the Seller about $1000 a month in property taxes and insurance or $5000 by letting it sit for another 5 months. Every day a house sits on the market costs the seller $$.
We sold a house FSBO this past week. It was part of an estate. We were working on the house doing painting, landscaping, etc., and decided to put a "For Sale" sign in front of the house. The third person who looked at the house bought it. We were planning to list the house once we get in condition to take pictures. We never reached that point.
We did not get an appraisal. I created a spreadsheet of all similar sales withing two years and and houses currently for sale within a 2-3 mile radius. It gave me a pretty good idea of what we realistically could expect to sell the house. The buyer offered 6% less than what we were asking for the house. We would have continued working on the house, and paying ongoing utility, insurance, taxes, and mowing grass, etc., so we thought the offer was fair. I was actually expecting the process to drag on for a long time once we listed the house.
We used the lawyer who was handling the estate but basically all she did was review the contract.
The buyer knew what they were doing. It was an estate house and people want to get rid of those. I'm surprised they waited until a sign was up, the vultures scour the obituaries and death records to get to them first. They got a deal, but you wanted the house gone so it worked out for both of you.
The buyer knew what they were doing. It was an estate house and people want to get rid of those. I'm surprised they waited until a sign was up, the vultures scour the obituaries and death records to get to them first. They got a deal, but you wanted the house gone so it worked out for both of you.
So you are telling me what I did?
Yes it was an estate but I was expecting to be working on this house and mowing the grass at least until next summer. The person who bought the house was a single female buying her first house. She grew up in the area and saw the sign. I did my own market analysis by creating a spreadsheet of every house that sold in the past two years and those on the market in a two mile radius. I had around 150 houses in my spreadsheet. The spreadsheet included square footage of the house, square footage of the property, number of rooms, baths, whether it had a furnished basement, AC, garage, etc.
I came up with a price that I thought was the max we could get for the house. We took their offer, which was 7% less than my max price.
If I would've thought the house would sell so quickly, I would not have done as much work as I did on the yard.
since no one said a real estate license = licensed attorney (JD degree doesn't allow you to practice law, btw), perhaps you can explain the difference between representing yourself in court vs selling your own home.
I will tell you one difference - if it's a criminal charge that would involve prison time, definitely higher risk to represent yourself in court than the risk selling your home without an agent representing you.
1. It is always better to use an agent to sell your house, rather than to do a FSBO.
2. It is always better to do a FSBO sale, rather than to use an agent.
3. None of the above.
Answer:
Spoiler
3. None of the above. Of course.
Was that on the NCRE exam?
I kid. I kid.
These threads always wander into the weeds. Everyone wants this binary answer and the real world is totally different.
I’ve done combinations of all of it.
FSBO - Unrepresented buyer. Title company close. We had both bought/sold before and it was pretty smooth. Honestly, the biggest issue was opening title to begin with. They really don’t like working outside of the industry.
Advertised property as an unrepresented buyer. Negotiated price reduction of 2% and a couple of fixes/credits that amounted to another point or so.
Advertised property with a realtor. Twice totally easy, one complete train wreck when the realtors got in a pissing match and both myself and the seller had to go to their brokers to get the deal done. It was a good thing the seller was a super rational couple that were on the same page with me.
No one dynamic is the “best” for everyone in all situations. A first time seller/buyer combo as an FSBO would be fun to watch though.
I'm thinking it would be more beneficial financially when we're ready to sell
We are the first owners and the house will only be about 15 or 16 years old when we sell. I would hire a professional photographer at about $200. Id have a company add my home to the MLS for $100 to $200. Id probably post on Zillow and possibly another real estate site and then I'd hire a real estate attorney for around $500 to 750.
Granted there's nothing wrong with the home and after an inspection it seems like it could be a good decision. I would maybe add a $2000 dollar cash offer to any realtor that brings a buyer.
So if I sold my own home I could probably do it for about $3500.
Better than paying $21,000(6% realtor fee) on a $350,000 sale!
We sold about 4 homes by owner. We ended up working with a buyer's agent, paying 3% commission on a couple of the houses. On one of the houses, the buyers split the 3% commission with us. It always worked out well.
I didn’t get the memo, a 45 hour sales course is now equivalent to a JD degree. . . . delusional much?! smh.
Love it!
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