Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We own a rental property out of state. The area is in a very tight market where little is for sale in the lower end of the market. We have received several offers from cash buyers (flippers, or investors) for our property. Most of them seemed like form letters sent to the whole neighborhood and they were just fishing for a desperate seller. We're definitely not desperate, but are thinking of selling while the prices are up and the market is tight for a quick sale. Well we recently got a letter from a RE broker offering to buy for a specific client (of course we realize that buyer may be fictional). We are wondering what the appropriate real estate commission or fees would be if the buyer were real and this sale went through?
Second issue is we have a long-term tenant who would need to relocate, and we are wondering how this whole process would flow. We would want to be fair and give the tenant 60 days to move out, but can that be guaranteed if we close sooner than 60 days? By CA law we can give 30 day notice after we open an escrow, but only if the buyer will be moving in and not renting to someone else. Is that something that must be in the purchase contract?
You will not know about the real price you can get on the open market by having a private unpublished sale.
You will need to communicate with the tenants, if your tenant refuses to relocate - the lease stays with the property. Then you have a smaller buyer pool and will not get top dollar. If your tenant wants to relocate - figure out the best course of action with their cooperation.
It's a month-to-month lease, so I'm guessing the new owner can just give him a 30 day notice if they plan to live in the property themselves.
I'm still needing to know realtors' thoughts about the typical fees/commission for handling a private sale, without MLS, or showings, or advertising, etc.
It's a month-to-month lease, so I'm guessing the new owner can just give him a 30 day notice if they plan to live in the property themselves.
I'm still needing to know realtors' thoughts about the typical fees/commission for handling a private sale, without MLS, or showings, or advertising, etc.
Well the buyer agent would let you know what fee they want. You typically just pay the buyer agent portion of the fee since there is no listing agent involved.
Were I you I would let YOUR real estate lawyer handle the sale. You will be negotiating, in theory, with a buyer represented by a knowledgeable negotiator. Have someone on your side.
call any brokerage in that area (where the property is) and ask them what the "typical" buyer's agent fee is. Pay no more than that. Your question issue is actually in another topic that was being discussed actively yesterday either here or the RE Professionals subforum.
you're getting some "extra" input because you don't indicate whether you have a solid idea of the market value of the property. How do you know what price you'd accept?
I've been looking at comps of homes sold in the last year that are identical to ours, same subdivision, builder, floorplan, and age. These are 30 year old halfplexes in a neighborhood of around 100 of the same. Only about 4 have marketed and sold this year, but pretty much all within $10K + or - of one another.
you certainly know the value then! As has been said here and the other thread I referenced, let the agent in question propose a fee first. you should negotiate it so that it's no more than the typical fee I mentioned before
This happened to us recently. A realtor sent letters to several people in the neighborhood - he said he has a relo client looking to live in our neighborhood. We invited him over to see the house. He told us the BUYERS would pay the fee (3%) since he is working for them. There were no fees to us. He had us name the price we would sell for.
I'm still trying to figure out if he had *real* buyers or if he was just fishing.
Snuffy, has he made a written offer? We are getting so many of these letters (4 in the last 2 months) that we think some are BS, or just fishing for someone desperate to sell at a lowball price. We are not NEEDING to sell, we just feel that with the elevated values and tight market, the timing might be best to get our maximum gain. This last letter seemed more on the level to us for some reason.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
