Realtor options

[Del Q]

Hi all, I'm going to sell my current primary residence in 2015. I already own my next primary residence and will be living there full time when I retire in January 2016.

My primary residence is a modest rambler in a small town. It will sell relatively quickly if priced reasonably. I'd be happy walking away with $125,000. I've got a buyer interested and would like to sell it to him privately, I really don't want to list it with a realtor - privacy has a value to me. I like the potential buyer and they're willing to be flexible with the current condition of the house closing date.

I don't know how to price it. Should I hire an appraiser ? I'm not going to ask a realtor to price it for me and then turn around and sell it privately, that wouldn't be fair to the realtor. But at the same time I don't want to add 6% to the price of the house for putting a price on it and handling the paperwork.

Do realtors work on a fee basis or smaller commission in a situation like this ? I don't expect to get their service for free.

 

[Walt34]

Yes you want an appraiser if for no other reason than to have a disinterested third party give you a price.

Others will disagree but I'd also hire an RE attorney to handle the contract and paperwork. There are so many little "gotcha's" in RE transfers, and most people do it so infrequently that to me it would be worth the attorney's fee to assure that all the paperwork was done right with no surprises later.

 

[Ronstar]

I agree with Walt. Get an appraisal. The buyer may need an appraisal to support the purchase price to the lender. If this is the case, get the appraisal done in the buyer's name and then split the cost. And also like Walt said, get a real estate attorney-especially since there is no realtor involved. The attorney needs to write/record the deed, order a title commitment/ policy, prepare closing statement, and maybe handle tax transfer.


Sent from my iPhone .using Early Retirement .//82339)

 

[tryan]

Realtor comps are "free" ... but you need an appraisal that will support financing for the buyer and give you a warm fuzzy feeling you got FULL price. Pay the $500 or ask the buyer to split-it with you since he benefits (banks require one).

 

[pb4uski]

You should be able to come up with a reasonable price by looking at recent sales of comparable properties in your area. If those are not available online (like through Zillow) then you may need to make a visit to your town or county land records office. You can also look to asking prices for similar properties in your area. You may need to make some adjustments for differences between the subject properties and your property. What I described is broadly what an appraiser will do. If you don't think you have the expertise to do it then you can hire it out.

However, it is unlikely in my experience that your buyer will be able to use an appraisal that you commissioned. In my experience the lender must originate, select and manage the appraiser.

I recall once wanting to get an appraisal of a property from an appraiser to comfort myself that I had it reasonably priced and was willing to forgo a formal appraisal report for just comps and a computation of value in exchange for a lower appraisal fee (since it would involve more work) and the appraiser that I normally use was unwilling to do it. I suspect that she was just so busy doing more fruitful work that my proposal wasn;t attractive to her.

If you do end up listing, you could exclude the potential buyers from the listing contract so if you sell to them you would not owe anything to the realtor.

We have bought and sold property in the past privately, including our home in 2011.

I agree with others that getting a good local real estate lawyer to handle the paperwork is important.

 

[38Chevy454]

X2, buyer will need an official appraisal if they finance, so get one now. Check with the lender buyer is using for what appraisers they have on approved list. Splitting cost with buyer seems a fair deal for both parties. This also assures you that the sale price is good for both parties.

You might be able to get by with just title company to process the closing paperwork, but a review by real estate attorney is probably worth the additional few hundred cost. Even doing the sale without realtor, remember that this is a formal contract, so ensuring it meets current legal requirements is wise.

As an alternative, you could ask realtor for a lower fee for a deal where they get both list and sale. Some will do it given you have a buyer ready.

The lender will still require to get some inspections done, and who pays for that is local custom.

 

[jfn111]

You could get a BPO (Broker Price Opinion) from a local real estate Broker for about $150.
You could get a CMA (Comparative Price Analysis) from any local agent for $50-$75 bucks.

 

[Mango1956]

I agree with others who said you can find out the right price for your house based on comparable recently solds and current comps on the market. I sold my mom's house a few years ago, using a realtor recommended to me by a friend in that area. I told the realtor that I had a buyer, and would he be willing to handle the paperwork for one percent. He said yes. He did a great job, and worked really well with mom. Good luck with your transaction!

 

[travelover]

Hire an appraiser and a real estate lawyer. You are saving $7500 in realtors fees, plus you will know if you are asking an appropriate price.

 

[robertf57]

A real estate agent brings a willing seller and buyer together. You already have this. You don't need a Realtor. I also disagree that this is a complicated endeavor. You can get a real estate contract at a stationary store or download it from the web. In everyplace I have ever lived, these are standard forms for the state and easily obtained. You do need an appraisal and survey for any financing and to help you set a price if you aren't firm on one already.

I don't think a real estate attorney adds anything but cost to this deal. In most states, the escrow, transaction, deed, and recording are all handled by a title company. You will need one for the title insurance and because they are on the hook if there is a defect in title, they will handle the paperwork (even if you do engage an attorney).

(note: I am not an attorney nor do I play one on TV)

 

[Del Q]

Thanks a bunch everybody. Here's what I plan on doing. First I'll contact the title company that handled the closing when I purchased the house and tell them what I have in mind and if they could handle a purchase agreement, then I'll ask them if they know an appraiser or realtor that can assist with the price.

Houses are selling well in our town, and our house is affordable to many people, including young families. I have nothing against realtors, I just want to avoid having a sign in the yard and all the neighbors talking about where I'm moving and dealing with curious people wanting to stop by and look through the house anytime they want just for fun. I'll accept 6% less than a realtor would ask if a willing buyer paid cash on the spot. I'd still pocket about the same amount.

Chances are the purchaser will need his own appraisal once the purchase agreement was signed, I don't think their lender would accept anything but their own.

 

[jIMOh]

Hi all, I'm going to sell my current primary residence in 2015. I already own my next primary residence and will be living there full time when I retire in January 2016.

My primary residence is a modest rambler in a small town. It will sell relatively quickly if priced reasonably. I'd be happy walking away with $125,000. I've got a buyer interested and would like to sell it to him privately, I really don't want to list it with a realtor - privacy has a value to me. I like the potential buyer and they're willing to be flexible with the current condition of the house closing date.

I don't know how to price it. Should I hire an appraiser ? I'm not going to ask a realtor to price it for me and then turn around and sell it privately, that wouldn't be fair to the realtor. But at the same time I don't want to add 6% to the price of the house for putting a price on it and handling the paperwork.

Do realtors work on a fee basis or smaller commission in a situation like this ? I don't expect to get their service for free.

Some realtors work on a fee basis, you need to ask around.

 

[outabout]

When I sold my last house in 2014, I researched for-sale houses within certain radius by using realtor.com, zillow, trulia, and cross reference with the county assessor records. I came up with a price that was exactly the same as suggested by the realtor I hired. I hired a flat-fee realtor that charges a flat fee and also gives a flat co-op to the buyer's agent which totaled to be about 1/3 of their standard fee, and my house was sold at full price. The contract papers are standard templates, not complicated in my opinion, and can certainly handled by an educated seller/buyer. The title company will NOT let the contract go through if there is something wrong with it, I don't see the need of an attorney.

 

[Sunset]

You can get a real estate agent to work for less than the 6%, those are fully negotiable rates and are really the "rack rate". I recently just read they will go down to 4% often.

 

[Winemaker]

For the last three properties that I purchased, I was the one who drew up the purchase agreement. The last 2 contracts were copied from attorney prepared agreement. If you insist in making up the agreement, why don't you re-use the same contract that you used when you purchased it? It satisfied your needs when you bought the property; adjust it to meet you, the seller's, needs.