Price difference without real estate agent (5%, commission, mortgage, mortgage)

[phetaroi]

In mid-February I will be contacting a real estate broker who will work to sell my house for a 5% commission.

Meanwhile, just by word of mouth, I am getting a couple of nibbles.

If I were going to price the house at $227,500 through the real estate agent, how much should I price the house if I don't use a real estate broker (I realize there are still expenses without a broker, but I have no idea what they are)?

Thanks for any input.

[Jkgourmet]

Originally Posted by phetaroi

In mid-February I will be contacting a real estate broker who will work to sell my house for a 5% commission.

Meanwhile, just by word of mouth, I am getting a couple of nibbles.

If I were going to price the house at $227,500 through the real estate agent, how much should I price the house if I don't use a real estate broker (I realize there are still expenses without a broker, but I have no idea what they are)?

Thanks for any input.

I'll be blunt: If you have to ask, you shouldn't be taking the financial or legal risk of even considering buying with out an agent. Especially considering the bolded line.

Don't take it personally: I'd give the same advice to 95% of people, including myself! And I'm an ex-accountant who also worked as a mortgage salesperson at one point in my career.

[froglipz]

5% less.

[sj08054]

Originally Posted by phetaroi

In mid-February I will be contacting a real estate broker who will work to sell my house for a 5% commission.

Meanwhile, just by word of mouth, I am getting a couple of nibbles.

If I were going to price the house at $227,500 through the real estate agent, how much should I price the house if I don't use a real estate broker (I realize there are still expenses without a broker, but I have no idea what they are)?

Thanks for any input.

So what are those "nibbles" offering? Where did the $227,500 come from? If you don't know the market, that 5% commission may be more valuable than you think.

[grampaTom]

If the house is worth $225K going through a broker it's worth $225K period.

[davebarnes]

Originally Posted by Jkgourmet

I'll be blunt: If you have to ask, you shouldn't be taking the financial or legal risk of even considering buying with out an agent. Especially considering the bolded line.

What JK said.

[cargoman]

Originally Posted by grampaTom

If the house is worth $225K going through a broker it's worth $225K period.

Thank you for saying what I was thinking.

[cargoman]

Originally Posted by Jkgourmet

I'll be blunt: If you have to ask, you shouldn't be taking the financial or legal risk of even considering buying with out an agent. Especially considering the bolded line.

Don't take it personally: I'd give the same advice to 95% of people, including myself! And I'm an ex-accountant who also worked as a mortgage salesperson at one point in my career.

And I will be blunt. The OP is talking about selling his place, not buying one.

[OrgNative]

I would sit down with two or three agents, get a market evaluation and then decide if what you are doing is worth the brokers fees in relation to your profit. Most buyers look at a fsbo as a discount as they know that there are no brokers fees and expect the difference in savings on their side of the deal. So what you are expecting to save may be lost to the buyers side.

There are many risks involved with doing it alone. Best of luck and I would like to hear what you finally decide.

[Diana Holbrook]

The value of the house is the value of the house, your expenses really don't change the value. What matters is whether you will accept the price that someone else wants to pay.