Question about selling as FSBO (RE agent, tenant, contingency, 1%)
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.
Long story short, we have a house to sell..The neighbor expressed an interest to buy it for his family.. We want to sell it AS IS as it needs about 50K to fix up .. he knows that.. ( we inherited it ) We have not signed with an agent yet, but spoke to a Realtor friend who we were going to have list it later.. Waiting for tenant to move out next month.
We asked him since we found a buyer, how much would his fees be to help do all tthhee paperwork and cost? He said 4% since he has to represent us both..
So I am kinda confused.. Would it be cheaper to just hire a real estate lawyer and draw up papers selling it AS IS to the neighbor .. assuming it was a all cash sale right..
This is our retirement so we need to get the most we can get.
Yes. Most FSBO transactions are just like yours and most people have an attorney look over contracts instead of using agents. You can also see if there is an hourly rate or flat rate agent around you that will do it for a set fee.
So I am kinda confused.. Would it be cheaper to just hire a real estate lawyer and draw up papers selling it AS IS to the neighbor .. assuming it was a all cash sale right..
If you're satisfied with the price and will be selling it to the neighbor then, yes, a real estate lawyer would be both cheaper and better than using an agent.
I would also like to add that there are plenty of independent Agents out there that will work with you. If you look on the forum, there are a couple of posts about agents offering discounts and cash back to get new customers. It is a very competitive market out there. Of course any agent working for a big firm is pretty much handcuffed.
Long story short, we have a house to sell..The neighbor expressed an interest to buy it for his family.. We want to sell it AS IS as it needs about 50K to fix up .. he knows that.. ( we inherited it ) We have not signed with an agent yet, but spoke to a Realtor friend who we were going to have list it later.. Waiting for tenant to move out next month.
We asked him since we found a buyer, how much would his fees be to help do all tthhee paperwork and cost? He said 4% since he has to represent us both..
So I am kinda confused.. Would it be cheaper to just hire a real estate lawyer and draw up papers selling it AS IS to the neighbor .. assuming it was a all cash sale right..
This is our retirement so we need to get the most we can get.
Cut out the realtor. Just hire a real estate lawyer.
If you go with realtor, your commission should be 1/2 of normal commission.
I ran into an old neighbor at the grocery store yesterday. I did a market analysis in October $425 to $450ish. She said she wanted to retire to AZ in May. I told her that if she wanted to move in May, put your house on the market in March.
I listed and just closed a similar house two blocks over in January. She told me she found a buyer through church and they are closing on the 28th. Great. She told me they got a great deal because they didn't have to pay the commission, so they agreed on $420,000. I told her congratulations and happy retirement.
I did not have the heart to tell her I sold that house in January for $15,000 over asking at $480. She will be getting my just sold postcard any day now.
So you are doing most of the work and the agent wants not just a full 3% commission but an extra bonus of 1% for the work they won't have to do. Unbelievable but I do know its true.
Looks like your RE agent's trying to take advantage of you. No way he has to charge 4% to represent 'both sides'.
I recently found a buyer for my home before I was ready to list it, and then asked a very experienced local broker what flat fee he wanted to guide me through the process: "$1800".
If you can't find a good experienced local broker to do the deal for a reasonable flat fee, a good RE attorney is the next best choice, imo.
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.
