Finally decided to sell, need some advice

NEW -> Contingent Buyer Assistance Program
K

Kali_IHB

New member
After 5 years of ownership, I am done with home ownership and want to sell my home.

What is the best way to market the house? Should I do FSBO or use an agent?

I do have a sales license placed with an agent, but have limited experience and knowledge. I am sure I can learn the process, I just want to get this done with effectively, quickly and limit my losses.



How many points should I offer for the buy side commission? Is that really a motivating factor in this market? List price will be $570,000.

I purchased in 2004 and I will more than likely loose money on my purchase after all the closing costs and fees :)



I am not forced to sell, but prefer too. Found a rental that is more suitable for my needs..



Thanks!
 
[quote author="Kali" date=1243608088]After 5 years of ownership, I am done with home ownership and want to sell my home.

What is the best way to market the house? Should I do FSBO or use an agent?

I do have a sales license placed with an agent, but have limited experience and knowledge. I am sure I can learn the process, I just want to get this done with effectively, quickly and limit my losses.



How many points should I offer for the buy side commission? Is that really a motivating factor in this market? List price will be $570,000.

I purchased in 2004 and I will more than likely loose money on my purchase after all the closing costs and fees :)



I am not forced to sell, but prefer too. Found a rental that is more suitable for my needs..



Thanks!</blockquote>
You should seriously consider talking about hiring IR2 about listing your home. I used a 3% buy-side commission on the condo I sold last year. Good luck and keep us posted.
 
<a href="http://www.irvinehousingblog.com/forums/viewthread/1307/">I thought you were going to list your home a year and a half ago</a>. Are you really serious this time, or what?
 
[quote author="usctrojanman29" date=1243608535]

You should seriously consider talking about hiring IR2 about listing your home. I used a <strong>3%</strong> buy-side commission on the condo I sold last year. Good luck and keep us posted.</blockquote>


I cannot believe how much money is lost in commission. What a racket.
 
[quote author="graphrix" date=1243609617]<a href="http://www.irvinehousingblog.com/forums/viewthread/1307/">I thought you were going to list your home a year and a half ago</a>. Are you really serious this time, or what?</blockquote>
Not to mention, the drop in price if he sold then instead of now. There was still much Kool-Aid and FCBness back then... now... not so much (well... outside of Irvine).
 
[quote author="graphrix" date=1243609617]<a href="http://www.irvinehousingblog.com/forums/viewthread/1307/">I thought you were going to list your home a year and a half ago</a>. Are you really serious this time, or what?</blockquote>


LOL, yes 100% this time.
 
It seems like a good time to sell in Irvine right now, as there are hordes of Irvine knife catchers. Good Luck.
 
[quote author="MojoJD" date=1243639632][quote author="usctrojanman29" date=1243608535]

You should seriously consider talking about hiring IR2 about listing your home. I used a <strong>3%</strong> buy-side commission on the condo I sold last year. Good luck and keep us posted.</blockquote>


I cannot believe how much money is lost in commission. What a racket.</blockquote>


Yea, I don't want to start a war on here, but I can never get past this issue. The borrower/owner risks several hundred thousand dollars to buy an asset, pays maintenance, insurance, taxes, etc. on that asset, so that later someone can take up to 6% whether or not that asset appreciated in value. Don't get me started on mortgage brokers.
 
[quote author="norcaljeff" date=1243761919][quote author="MojoJD" date=1243639632][quote author="usctrojanman29" date=1243608535]

You should seriously consider talking about hiring IR2 about listing your home. I used a <strong>3%</strong> buy-side commission on the condo I sold last year. Good luck and keep us posted.</blockquote>


I cannot believe how much money is lost in commission. What a racket.</blockquote>


Yea, I don't want to start a war on here, but I can never get past this issue. The borrower/owner risks several hundred thousand dollars to buy an asset, pays maintenance, insurance, taxes, etc. on that asset, so that later someone can take up to 6% whether or not that asset appreciated in value. Don't get me started on mortgage brokers.</blockquote>
That's the unfortunate part, real estate sales have relatively high closing transaction costs. The problem for me not giving a 3% buyside commission (I'm sure I could have offered 2% or 2.5%) would have shrank the potential pool of buyers because what incentive would buyer's agent have in bringing their buyers to my property if they aren't gonna get paid? Fighting the system is an uphill battle and I wanted to get out while the getting was still good.
 
I look forward to the day when internet self-managed services force real estate agents and brokers to go the way of the travel agents.
 
[quote author="MojoJD" date=1243910500]I look forward to the day when internet self-managed services force real estate agents and brokers to go the way of the travel agents.</blockquote>
Is this possible?



To also respond to norcaljeff... I see the need for realtors.



1. They give you physical access to a home

2. They are supposed to protect said home while prospects are viewing it

3. They are a human knowledgebase for the area you are buying/selling

4. They provide 3rd party marketing services that many homeowners are unable to do



Travel/vacations is much different from real estate as it requires physical human contact. Even the "online" realtors like RedFin still need to send someone out to show you the home. Back when we bought our first home, we tried to use one of those discount RE brokers who charge a smaller commission and give you the rest, but it was always them getting the listing agent to show us the home which isn't the best way to shop for a house.



P.S. I'm not a realtor.
 
upon further reflection and the points you make, you may be right. I'm just frustrated with the prospect of losing so much of the home equity margin at the time of sale of my next home.
 
I get all this IHO, but they make a pretty big amount on sales alone. 6% of sales is huge. It needs to pay for all those other times you didn't buy and used an agent. If the model was based on usage instead of sales, you'd have a lot more people doing their homeworks before, saving time for everyone and it wouldn't only those doing transactions that would make revenue for RE. This would create a lesser fixed cost for transaction.
 
Oh... I'm not speaking on the percentages... I just think we need the human realtor vs. the internet bot.



But... there are some people who really earn that 2, 2.5 or 3% and I'm okay with it. And if a buyer's agent brings me a qualified buyer that close the deal quick in this market... that's also worth some percentage points.



And as much as we would like people to do homework... c'mon... people still don't know the invoice price of cars when they walk onto the lot.
 
You must log in or register to reply here.
Back
Top