[airics]

Originally Posted by twoeeyy

All I can say is that I am happy with the current real estate market. We put our house on the market last weekend. We had 15 offers within 24 hours. We have lived in our house in the south west area of town for 1.5 years and we sold it for 40 grand more than we paid for it.

Curious. What was the ratio of cash buyer to finance? And what price point was the house at? And congrats by the way. At most I’m holding on 1 more year to sell but I’m thinking this year. Did you stay in the area? If so then you didn’t make money considering what you would pay for the new house

[Michael2016]

Originally Posted by twoeeyy

All I can say is that I am happy with the current real estate market. We put our house on the market last weekend. We had 15 offers within 24 hours. We have lived in our house in the south west area of town for 1.5 years and we sold it for 40 grand more than we paid for it.

Would this proft not be taken away by seller`s and buyer`s agent commissions around 6% plus other closing costs like title insurance?

[WorldKlas]

Originally Posted by Michael2016

Would this proft not be taken away by seller`s and buyer`s agent commissions around 6% plus other closing costs like title insurance?

If using realtors, I always calc full typical closing costs are about 10% of sales price. So if the house sold for $400K its just a wash.... Hopefully, the poster sold for under $300K and is not buying again in the valley. Otherwise not much of a profit.

[lvmensch]

A full 6% commission closing will cost about 8.25%. With the common current discounting around 7.75%. That presumes normal splits.

18 month price gain for the median home is roughly twice that.

[OmegaSupreme]

Why pay a realtor what they want? if you're selling the house, YOU negotiate their commission. Out of the 12,000+ realtors, I'm sure you can find an excellent realtor who is much more inexpensive than what seems to be the industry norm. As the seller, you just have to put in some initial work with setting up interviews.

I would gladly take a 1% commission as a listing agent if I was still active. It's basically zero work. Give 3% to the buyer's agent to (indirectly) encourage more buyers. Paying more than 4% to sell your home makes no sense.

[airics]

Originally Posted by Michael2016

Would this proft not be taken away by seller`s and buyer`s agent commissions around 6% plus other closing costs like title insurance?

On 200, it’s only 12k commission. When we sell this year, I expect close to 100k profit

[Michael2016]

Originally Posted by OmegaSupreme

Why pay a realtor what they want? if you're selling the house, YOU negotiate their commission. Out of the 12,000+ realtors, I'm sure you can find an excellent realtor who is much more inexpensive than what seems to be the industry norm. As the seller, you just have to put in some initial work with setting up interviews.

I would gladly take a 1% commission as a listing agent if I was still active. It's basically zero work. Give 3% to the buyer's agent to (indirectly) encourage more buyers. Paying more than 4% to sell your home makes no sense.

The seller/owner of my house was a real estate agent himself. I found the house in Zillow and approached them directly. We ended up with 0% commission for the seller and 0% commission for the buyer. I saved a ton of money going this way. As a buyer, you have the internet and the houses are listed, why to pay a average yearly salary in the valley on commission if you can locate the houses over the internet yourself? The contracts are simple fill in forms that really everyone with basic business knowledge can fill out and if needed,you can hire a lawyer (for 500$ just to review the documents).

[lvmensch]

Originally Posted by Michael2016

The seller/owner of my house was a real estate agent himself. I found the house in Zillow and approached them directly. We ended up with 0% commission for the seller and 0% commission for the buyer. I saved a ton of money going this way. As a buyer, you have the internet and the houses are listed, why to pay a average yearly salary in the valley on commission if you can locate the houses over the internet yourself? The contracts are simple fill in forms that really everyone with basic business knowledge can fill out and if needed,you can hire a lawyer (for 500$ just to review the documents).

As you are well aware your situation is somewhat unique. First off the place is owned by an RE agent which gives certain privilege. then you have pretty good knowledge of contracts and a lawyer close at hand.

Even then though it can be tricky. Do you have a septic system for example. You may not but they are common in that area as are wells. Would you know what to do about a sale involving a septic system?

And those places have CC&Rs even if no HOA. With an agent seller you would likely receive them...though with a standard FSBO you might well not. And how is the street set up? Those cul de sacs are virtually always private and are not maintained by the municipality.

So yes you did well. But it does not always work out that way.

[foundapeanut]

^^^ Yikes, would never buy with a septic system, seen too many friends have issues.

If you've never been in the situation like the cul de sac, you don't know what can come up. Wow sound like it could be a mess. Never heard of CC&R'S with out HOA?

No thanks, I would pass on the house even saving on the commission.

Does the RE agent not getting a fee allow them to not disclose info that is very relevent to the house, just askin'.

[Michael2016]

Originally Posted by lvmensch

As you are well aware your situation is somewhat unique. First off the place is owned by an RE agent which gives certain privilege. then you have pretty good knowledge of contracts and a lawyer close at hand.

Even then though it can be tricky. Do you have a septic system for example. You may not but they are common in that area as are wells. Would you know what to do about a sale involving a septic system?

And those places have CC&Rs even if no HOA. With an agent seller you would likely receive them...though with a standard FSBO you might well not. And how is the street set up? Those cul de sacs are virtually always private and are not maintained by the municipality.

So yes you did well. But it does not always work out that way.

Hi,

no we don`t have a septic tank. All houses around are also connected to sewer system, maybe more north, but not exactly where we are. As for the road, I am now on business trip and don`t have all papers with me, but as far as I remember, the road belongs equal to the 4 houses in the cul de sac, and therefore any maintenance would be the responsibility of the 4. I would look it up once I have time to see detailed stipulations. And yes this was a unique situation that saved us the commissions. Also unique was that the house owner put in more than 80.000$ in making the home "smart" and when selling he never got the many upgrades he invested in back... So we got a lot of stuff almost for free. The homeowner build his home for his retirement but had to leave overnight due to his job in another state, and sold at a big loss compared to what he has put in the house... So we are pretty happy with the price paid.