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Me too! I want to see what they list it for as that'll give me some idea of what they expect to get. Now that that sale has been recorded I wonder how much it'll affect the comps as they'd have to come up a bit to meet this sale...
Jim, sorry for reviving this thread but could you actually break down the fees they charge you when you sell your house? Are they upfront with all the fees and no hidden fees anywhere? I mean I know thier website says 6.5-13%, how would I know which of this end I'll be paying? I'm looking to sell in early 2019 so just looking at some options. Skipping the major hassles of selling is a big deal to me. Please let me know, thank you.
JimJ, any update on what the final sale price was?
Their final sales price was $255k with a $3k credit to the buyers which I'm guessing was applied to closing costs. It went under contract in 6 days. It looks like they made out ok on their "flip" of our house.
Their final sales price was $255k with a $3k credit to the buyers which I'm guessing was applied to closing costs. It went under contract in 6 days. It looks like they made out ok on their "flip" of our house.
Jim,
I just scanned the thread and cannot find the amount they paid you for the house.
Maybe I overlooked it, but I would like to compare it to their result.
Jim, sorry for reviving this thread but could you actually break down the fees they charge you when you sell your house? Are they upfront with all the fees and no hidden fees anywhere? I mean I know thier website says 6.5-13%, how would I know which of this end I'll be paying? I'm looking to sell in early 2019 so just looking at some options. Skipping the major hassles of selling is a big deal to me. Please let me know, thank you.
The way it brakes down is 6% commission, you pay pretty much all closing costs, any HOA fees and any items that the inspection finds need to be fixed (which is normal). They give you two options on repairs, either pay to have their people fix it or you fix it. Had what they found needing repair been any higher than the $700 their repair people wanted I would have done it myself as their "contractors" are way high priced just like most.
The 6-13% spread that's worrying you breaks down like this. You WILL pay 6% commission. Where it "may" go up is if their computer algorithm finds your house "may/might" sit on the market for an inordinate amount of time. That extra 1% to 7% is a buffer on holding costs. They told me that in a busy area it's not normally charged. They WILL disclose every single charge AND you have the option to cancel up to the day of closing at NO cost to you.
They are very,very upfront about what they charge, the best advice I can give you is READ the contract AND the Estimate of Closing Costs. I didn't do that and even had my R.E. Agent friend look in over and we both missed the line item about "seller pays all HOA Transfer Fees". That, in our state is always paid by the buyer so they "got me" for about $600. Totally MY fault as I missed it. You will NOT have to fill out disclosure forms except some very basic questions they ask when you first go through the process. I found that interesting as every other sale required detailed disclosures. The only thing we could figure out is if they don't ask they don't have to tell the new buyers. To me, that's a plus for me as I won't be getting nit-picked to death.
Would I have argued about the basically $1200 worth of stuff I had to pay that in a normal sale I would not have? Maybe very lightly and "might" have gotten some adjustments but in the scope of the whole sale it's not much money, they cut me a break on renting back fees AND I couldn't say enough how valuable having all that time to get ready to move and find another house was to us not to mention not having to go through the normal selling process of showings,hassle,super cheap buyers wanting every little thing for nothing.
Also, I got to keep all my new appliances (including an $800 water softener system) as they didn't want 'em in the house (they don't warranty anything when they sell) so I got to sell all the appliances at our new house which were basically new AND didn't have to buy another softener system. I basically put on my "pragmatic" hat to get the deal done.
Again, you can change your mind at any time up to the day of closing with no cost to you. Everyone just walks away. They make that very clear with every document you sign and pretty much every page you look at says it at least once if not multiple times.
Jim,
I just scanned the thread and cannot find the amount they paid you for the house.
Maybe I overlooked it, but I would like to compare it to their result.
Would you share it?
Mike, they paid us $250k for the house minus the 6% commission and $1200 in misc charges like repairs and HOA crud as well as a $500 rent back charge (we had to rent back because we were using all the sale money on the new house).
Basically they made 9% commission on the deal and held the house for 30 days.
Mike, they paid us $250k for the house minus the 6% commission and $1200 in misc charges like repairs and HOA crud as well as a $500 rent back charge (we had to rent back because we were using all the sale money on the new house).
Basically they made 9% commission on the deal and held the house for 30 days.
So, they are in at $233,300 (if we count the rent back) and resell at $255,000.
In my market they pay 2.4% to a buyer's agent.
$248,800.
They have held 148 listings in my MLS. 17 county market, and I would have to dig deeper into the geography.
More than 2 million population, but some of that is a bit rural.
Average DOM here for Open Door is 48.
Median DOM here for Open Door is 36.
At a $15,500 gross profit and considerable operational expenses, that is a slim margin for the risks entailed. Most good flippers would not entertain it.
I wonder how they will tweak to build a LT sustainable model.
But, clearly in this instance it worked for you. Good enough, today!
Last edited by MikeJaquish; 07-13-2018 at 07:26 AM..
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