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Old 04-11-2016, 12:43 AM   #41
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What agents do in our area often is they set a date and say they will review all offers on X date. If you have multiple families interested and your house is priced below market maybe that would work for you.

We have always had a real estate attorney review our home buying and selling contracts and avoid using realtors when we can help it. We use escrow companies for drawing up and signing the documents.
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Old 04-11-2016, 09:49 AM   #42
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Not sure if my advice would change depending on what state you live in...but my advice would be to get a real estate lawyer ASAP. You should run everything (all offers/counter offers/contracts) through your lawyer.

We sold our last house by ourselves, and that's what we did.
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Old 04-11-2016, 02:10 PM   #43
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Here is a snippet from a local RE writer/blogger where some home buyers give opinions on real estate transfer customs.

Quote:
Let’s look at the math in this example:

Home sells for $400,000.

Sellers owe $300,000.

Gross gain is $100,000.

Agents get $24,000, or 24 percent of the seller’s equity. Then the county takes 2 to 2.5 percent so subtract another $8,000, leaving the seller $68,000. If the sellers took out a second mortgage to get repairs done and do some painting or staging for the sale, subtract another $8,000 (roughly), and we’re left with $50,000 profit.

So the agents and brokers take home $24,000 in commission while sellers get $50,000 profit — nearly 50 percent of the take.

Agents and their commissions might have made sense in the 1950s for people moving across country who didn’t know a thing about neighborhoods, crime, homes or local prices. Now, all of these can be researched online and comps pulled up.

It’s a dinosaur industry, and the players are doomed.
The 6% commission: Is it the best way to pay agents? | The Seattle Times

Darn few homes selling for $400,000 in Seattle today, except tiny, old, obsolete if not unsafe houses. One son and DIL recently sold an OK but nothing special town home in Ballard on the first day of the listing, for $600k+. Except in the far south and perhaps far north of Seattle City there are not many modern, no shared wall houses available for less than ~$1mm. The builders will not/cannot build small when the lots costs so much. So agents would walk away with 6% of $1mm, or $60K. Not too shabby.

It seems that messing with residential real estate is worth it when you are able to buy really well, or if you are a skilled flipper or if you hate rental accommodations, or you see affordability issues coming down the road Otherwise, avoid a real risk, save yourself a lot of time and worry and instead of working in the yard, go to the beach or the mountains or the fishing stream. Put your money in your index fund allocation and party on.

I have spent 1/2 my adult life as an owner, and 1/2 as a renter. I have always made money owning, but preferred renting. I own now, because my retirement income and resources would not have guaranteed me that I could certainly remain in my chosen central area of a fairly expensive city. Even if my other son moved to a new job/city, there are few places I would want to move, and all of them more expensive than here.

I think some other cities are very nice, but I am a creature of habit and my feelings about my home city are very positive, and have always been so.

Ha
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Old 04-11-2016, 02:59 PM   #44
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I'd tell the buyer's agent to pound sand or as a minimum, pay less than 3%. Unless you agreed to it, you don't owe it.
It's more likely that the buyer's want you to pay 3%, not the buyer's agent.

I'm guessing that the buyer has signed a Buyer's Representation Agreement stating that they will pay the buyer's agent/broker 3% but that this amount will be reduced by whatever amount is received from the seller or listing agent.

Therefore, the buyer is on the hook for the 3% if you don't pay it.

So it comes down to whether they want to pay 3% extra on top of what they offered or they will reduce their offer amount accordingly to account for the amount they will need to pay their agent. That answer will come down to their level of motivation and whether they think the home is still a value at 3% more.
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Old 04-12-2016, 07:26 AM   #45
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House is under contract now. We are splitting the 3% with the buyer and they struck out a few clauses we did not feel comfortable signing. They really really want the house, and I guess getting over a half acre on a top salmon/steelhead river, a 4500 sq-ft house with 5 car garage, all about 40 minutes from Seattle was a good enough deal at $285k.

I am pretty confident the sale will go through since they have 20% down for a conventional loan, but you never know about these things. Still, it looks like we will be homeless in 45 days

Now we can go park our RV in front of haha's condo in Seattle, or partake in Seattle's waterfront free RV park for homeless drug addicts (I have a mean coffee addiction).
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Old 04-12-2016, 07:47 AM   #46
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That seems an extraordinarily low price, to me. I don't know the market out there, obviously, but I'm selling an 1800 sq-ft house with no garage in poor shape on a dirt road on the Shenandoah River in VA (don't eat the fish) and expect to get in the $225K-$250K range. It's on 3 acres, but 2 of them go straight up, and about 1.5 hours from DC. Is property really that cheap out there?
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Old 04-12-2016, 09:00 AM   #47
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Originally Posted by Fishingmn View Post
It's more likely that the buyer's want you to pay 3%, not the buyer's agent.

I'm guessing that the buyer has signed a Buyer's Representation Agreement stating that they will pay the buyer's agent/broker 3% but that this amount will be reduced by whatever amount is received from the seller or listing agent.

Therefore, the buyer is on the hook for the 3% if you don't pay it.

So it comes down to whether they want to pay 3% extra on top of what they offered or they will reduce their offer amount accordingly to account for the amount they will need to pay their agent. That answer will come down to their level of motivation and whether they think the home is still a value at 3% more.
Congrats on your contract. Here's hoping it goes to closure.

Ha
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Old 04-12-2016, 09:24 AM   #48
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That seems an extraordinarily low price, to me. I don't know the market out there, obviously, but I'm selling an 1800 sq-ft house with no garage in poor shape on a dirt road on the Shenandoah River in VA (don't eat the fish) and expect to get in the $225K-$250K range. It's on 3 acres, but 2 of them go straight up, and about 1.5 hours from DC. Is property really that cheap out there?
That's for sure, especially since the first looking made a quick full offer, and the second looker seemed ready to.

It's the OP's business, but I'd rethink this "wife is always right" policy. It's one thing when she's wrong about a tax issue that'll work itself out when you fill out the forms. It's another when it's probably leaving 10s of thousands of dollars on the table. Maybe I'm out of line, but I feel like if this was a woman posting about her husband being this way, a lot of people would be telling her to assert some control. I don't know why it should be different with the roles reversed. That's all I have to say, and in disclosure, I'm divorced and probably not one to listen to for relationship advice.
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Old 04-12-2016, 09:38 AM   #49
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I am leaving out a lot of details about the work needed on the house (roof work, siding, deck, plumbing) and the square footage I quoted would be after some unfinished rooms are finished.

$280k ($285k minus the split commission) is a below market price but not horribly out of line with the house condition and this area. Prices do drop off dramatically as you go east from Seattle. A 3900 sqft riverfront HGTV quality home with a new $50k kitchen a few blocks from us (also on the river) was on the market for 7 months at $450k and finally sold for $400k this March. We had a couple of agents do a walk through last year and they suggested because of the work needed on the house that we list it under $300k.

So we came up with $295k - $15,000 saved in commission and decided a quick sale by owner at the $280k level would be better than potentially spending many months on the market to get top dollar.

There is a lot lower stress in a sale knowing that your buyer is getting a good deal and is very unlikely to want to back out.

So my wife probably was right after all.

(and remember, before we retired my wife was making $280k A YEAR, and if potentially we need to get some cash early in retirement she still has tons of contacts in the software industry all over the country)
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Old 04-12-2016, 09:47 AM   #50
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Removed since it had nothing to do with Fermion's deal, his wife or anything else other than my general social commentary which is likely best kept to myself.
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Old 04-12-2016, 10:13 AM   #51
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Congratulations Fermion for selling your house and for having a smart and stubborn woman. Those are excellent qualities and she will treat you very well. Enjoy sailing the world together!
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Old 04-12-2016, 10:20 AM   #52
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That's for sure, especially since the first looking made a quick full offer, and the second looker seemed ready to.

It's the OP's business, but I'd rethink this "wife is always right" policy. It's one thing when she's wrong about a tax issue that'll work itself out when you fill out the forms. It's another when it's probably leaving 10s of thousands of dollars on the table. Maybe I'm out of line, but I feel like if this was a woman posting about her husband being this way, a lot of people would be telling her to assert some control. I don't know why it should be different with the roles reversed. That's all I have to say, and in disclosure, I'm divorced and probably not one to listen to for relationship advice.
I'm interested in this thread and want to see if everything works out for the OP. FSBO is an area with a lot of interest on this board. Let's not go down a road that will lead to this thread being closed, please...
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Old 04-12-2016, 10:28 AM   #53
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Quote:
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......We had a couple of agents do a walk through last year and they suggested because of the work needed on the house that we list it under $300k.

So we came up with $295k - $15,000 saved in commission and decided a quick sale by owner at the $280k level would be better than potentially spending many months on the market to get top dollar. ....
That is sort of the math we used when we sold our main house 4 years ago. We got a seemingly low-ball no-financing contingency offer with no realtors involved in September just before we were about to list it with a realtor. The way I figured it, it was unlikely to sell in that market in the fall and if it sold in the spring for what I thought it would sell for after deducting commissions and more importantly carrying costs for 6 months (power, heat, snowplowing, taxes, insurance, etc.) we were netting the same amount and a bird in the hand was worth two in the bush. In retrospect a very good decision for us.
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Old 04-12-2016, 02:15 PM   #54
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Well congratulations on the offer. I hope we're as lucky. I'll let you know how it goes.
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Old 04-12-2016, 09:54 PM   #55
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Huh. I got a call a couple of hours ago from my prospective buyer. He's floating a price to me, $235K. I had previously told him I wanted about $250, but I thought that my price was high to leave some negotiation space. If he actually comes through with that offer, I'm going to accept it. Amazing.

So I put a book on request at the library - For Sale by Owner by Robert Irwin | 9781427797469 | Paperback | Barnes & Noble. I'm going to get that one tomorrow, and read it real fast. I might buy another one online if it appears I need to know more.

This is trippy. I really didn't expect anything to come of this. Of course, we'll have to see whether it will appraise high enough to allow him to get his financing. If it comes up just a few $K short, I'll be willing to work with him, especially since we won't be paying agent fees. I hope it all works out.
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Old 04-12-2016, 10:06 PM   #56
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Well here's hoping that you soon have the money in your account.



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Old 04-12-2016, 11:05 PM   #57
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Find an Attorney that specialize in Closing Real Estate transactions. An Attorney will take care of payments, escrows, titles, etc.
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Old 04-12-2016, 11:26 PM   #58
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4,500 sq.ft. for $285K .. 40 min from Seattle .. are you serious? That's cheap. I bet the buyer feels lucky.


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House is under contract now. We are splitting the 3% with the buyer and they struck out a few clauses we did not feel comfortable signing. They really really want the house, and I guess getting over a half acre on a top salmon/steelhead river, a 4500 sq-ft house with 5 car garage, all about 40 minutes from Seattle was a good enough deal at $285k.

I am pretty confident the sale will go through since they have 20% down for a conventional loan, but you never know about these things. Still, it looks like we will be homeless in 45 days

Now we can go park our RV in front of haha's condo in Seattle, or partake in Seattle's waterfront free RV park for homeless drug addicts (I have a mean coffee addiction).
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Old 04-13-2016, 06:12 PM   #59
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House is under contract now. We are splitting the 3% with the buyer and they struck out a few clauses we did not feel comfortable signing. They really really want the house, and I guess getting over a half acre on a top salmon/steelhead river, a 4500 sq-ft house with 5 car garage, all about 40 minutes from Seattle was a good enough deal at $285k.

I am pretty confident the sale will go through since they have 20% down for a conventional loan, but you never know about these things. Still, it looks like we will be homeless in 45 days

Now we can go park our RV in front of haha's condo in Seattle, or partake in Seattle's waterfront free RV park for homeless drug addicts (I have a mean coffee addiction).
Now I see why people were lining up to buy a house on a salmon river near Seattle. I guess it could also explain why the homeless drug addicts are camping on the waterfront.

Salmon Caught Near Seattle Are Full Of Cocaine And Antidepressants
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Old 04-14-2016, 08:55 AM   #60
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Deal might be in trouble. Buyer got a quote for flood insurance of $5300 for $250k of coverage. Isn't that just insane? I know FEMA is trying to subsidize Katrina by juicing everyone else but really?

Our last premium in 2015 was $1025 but our elevation certificate needs updating to show we do have flood vents (I uncovered them from the shrubs). Our flood insurance should be around $500 to $600. Not a dime of claims since the house was built in 1985.

I am hoping we can get a updated certificate fast and then find a insurance agent who knows how to submit it to FEMA so the seller can get affordable insurance. Other than that, we would need to find a cash buyer or do owner financing?
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