Author Topic: Selling a home - Should I get a realtor  (Read 7738 times)

Offline henche

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Re: Selling a home - Should I get a realtor
« Reply #40 on: October 23, 2018, 10:27:37 AM »
I did some research on Redfin, not the best reviews. They charge a 1% listing service (sellers commission) and the buyers commission I guess would vary 2-3%. I could just go with a local realtor at 3% for the entire thing.

Which local realtor will do it for 3% all in? They need to take something themselves, and also offer a buyer's commission.  That's 1.5% each, and they not gonna do that

Offline xodus8

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Re: Selling a home - Should I get a realtor
« Reply #41 on: October 23, 2018, 10:45:58 AM »
Which local realtor will do it for 3% all in? They need to take something themselves, and also offer a buyer's commission.  That's 1.5% each, and they not gonna do that

I got offers from Fillmore, Exit, Pride and Highclass Realty. Fillmore even said if the buyer is direct they would lower it to 2%. There are so many realtors which is causing a lot of competition. Also rex realty is offering a 2% flat charge for everything. With prices being what they are these days and having Zillow/Trulia agents are willing to take a bit less I suppose.

Offline Dan

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Re: Selling a home - Should I get a realtor
« Reply #42 on: October 23, 2018, 11:01:20 AM »
From what I've seen locally, FSBO homes that wind up going to realtors almost always end up selling for less than the original FSBO price. The reasons they didn't sell is invariably that they were overpriced.
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Offline Dr Moose

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Re: Selling a home - Should I get a realtor
« Reply #43 on: October 23, 2018, 11:03:15 AM »
As someone once said, being a sellers agent is like having hundred agents working for you to get the buyer.

Most buyers have agents that they're working with and if their agent comes across a deal that they'll get 3%, they'll be sure to push their clients towards it.

Unless you're giving 5-6%, you won't get a sellers agent that will offer that much to a buyer's agent because it will take from their cut. That is why I posted that link, I know people who've successfully used that website.
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Offline Dr Moose

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Re: Selling a home - Should I get a realtor
« Reply #44 on: October 23, 2018, 11:03:56 AM »
From what I've seen locally, FSBO homes that wind up going to realtors almost always end up selling for less than the original FSBO price. The reasons they didn't sell is invariably that they were overpriced.
That is definitely a benefit to having an agent, one that knows the local market.
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Offline Toasted

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Re: Selling a home - Should I get a realtor
« Reply #45 on: October 23, 2018, 11:08:08 AM »
From what I've seen locally, FSBO homes that wind up going to realtors almost always end up selling for less than the original FSBO price. The reasons they didn't sell is invariably that they were overpriced.
I think there's a credibility issue when values are totally subjective. FSBO is hanging a red flag saying I'm a cheapskate and vary from mainstream to squeeze another buck. Buyers automatically suspect that it's overpriced. Another hunch I'd have as a buyer is that since seller is saving on commision and doesn't have a broker to run negotiations, he'll cave on low offers or bad terms.

By the time a realtor comes in after it's rotting on the market, there's kind of proof that the price was unreasonable.

Online yitzgar

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Re: Selling a home - Should I get a realtor
« Reply #46 on: October 23, 2018, 11:09:49 AM »
From what I've seen locally, FSBO homes that wind up going to realtors almost always end up selling for less than the original FSBO price. The reasons they didn't sell is invariably that they were overpriced.
+ especially since everyone talks about how hot the market is, sellers are in the clouds about how much they can actually get.

Offline henche

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Re: Selling a home - Should I get a realtor
« Reply #47 on: October 23, 2018, 11:10:29 AM »
I got offers from Fillmore, Exit, Pride and Highclass Realty. Fillmore even said if the buyer is direct they would lower it to 2%. There are so many realtors which is causing a lot of competition. Also rex realty is offering a 2% flat charge for everything. With prices being what they are these days and having Zillow/Trulia agents are willing to take a bit less I suppose.

Ask them what they're offering the buyer's agent.  The buyer's agents won't come if they're not getting paid, which means you may as well be FSBO

Online yitzgar

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Re: Selling a home - Should I get a realtor
« Reply #48 on: October 23, 2018, 11:12:32 AM »
I think there's a credibility issue when values are totally subjective. FSBO is hanging a red flag saying I'm a cheapskate and vary from mainstream to squeeze another buck. Buyers automatically suspect that it's overpriced. Another hunch I'd have as a buyer is that since seller is saving on commision and doesn't have a broker to run negotiations, he'll cave on low offers or bad terms.

By the time a realtor comes in after it's rotting on the market, there's kind of proof that the price was unreasonable.
He was talking about houses that we're fsbo but ended up going to realtors. Most houses sold lately in CLE were fsbo and got snapped up right away. Those were probably priced normally. (Or suckers from NY came and overpaid)

Offline xodus8

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Re: Selling a home - Should I get a realtor
« Reply #49 on: October 23, 2018, 11:13:08 AM »
Ask them what they're offering the buyer's agent.  The buyer's agents won't come if they're not getting paid, which means you may as well be FSBO

From my understanding it's 50/50 split so 1.5% to seller agent and 1.5% to buyer agent.


Offline xodus8

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Re: Selling a home - Should I get a realtor
« Reply #50 on: October 23, 2018, 11:18:10 AM »
As someone once said, being a sellers agent is like having hundred agents working for you to get the buyer.

Most buyers have agents that they're working with and if their agent comes across a deal that they'll get 3%, they'll be sure to push their clients towards it.

Unless you're giving 5-6%, you won't get a sellers agent that will offer that much to a buyer's agent because it will take from their cut. That is why I posted that link, I know people who've successfully used that website.

This makes a lot of sense. The question is with houses in brooklyn jewish areas being at 1M and over would sellers actually commit to an agent for a 6% commission. A house in some random place that costs 400k 6% nets 24k. When your talking about a house that is much more expensive what is the real estate agent doing extra to be getting such a high commission to a realtor in some random state.

A lot of these offers I got are from this website upnest.com basically you fill out a form and local agents give you their proposals and some stats. I got 4 offers ranging from 3.5% to 4.5% I was able to talk all of them down to 3%.

Offline ChaimMoskowitz

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Re: Selling a home - Should I get a realtor
« Reply #51 on: October 23, 2018, 11:18:27 AM »
You really need to get commission rate based on the price of the house out of your head. Do you change the percent you tip at a restaurant on a 100 and 500 bill?
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Offline xodus8

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Re: Selling a home - Should I get a realtor
« Reply #52 on: October 23, 2018, 11:20:27 AM »
You really need to get commission rate based on the price of the house out of your head. Do you change the percent you tip at a restaurant on a 100 and 500 bill?

I see your point but I don't agree with it. A 500 bill in a restaurant indicates most likely more people and much more dishes being ordered. The waiter is doing a lot of extra work. An agent if the house costs 400k or 1M is pretty much doing the same job.

Offline Toasted

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Re: Selling a home - Should I get a realtor
« Reply #53 on: October 23, 2018, 11:25:33 AM »
I see your point but I don't agree with it. A 500 bill in a restaurant indicates most likely more people and much more dishes being ordered. The waiter is doing a lot of extra work. An agent if the house costs 400k or 1M is pretty much doing the same job.
Welcome to the world of commision. Is an insurance agent selling a 5k policy doing 5x work than a 1k policy?

Offline xodus8

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Re: Selling a home - Should I get a realtor
« Reply #54 on: October 23, 2018, 11:27:35 AM »
Welcome to the world of commision. Is an insurance agent selling a 5k policy doing 5x work than a 1k policy?

Usually top clients do get a better commission % then a guy placing one small order. I work as an actuary and I can tell you first hand commission % vary greatly with premium size.

Offline xodus8

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Re: Selling a home - Should I get a realtor
« Reply #55 on: October 23, 2018, 11:32:59 AM »
+ especially since everyone talks about how hot the market is, sellers are in the clouds about how much they can actually get.

I have been looking at Zillow recently sold listings in the area for months. Looking at what other houses have sold in my area I'm priced pretty fair, some agents who came and saw the house suggested I should've listed even higher (not buying their BS). With the rates going up by about 3/8s or so and the winter coming has not helped me. A guy from my shul had his house by owner, then with an agency, then back to FSBO and he sold recently. It took about a year or so, but he listed initially at 859, then it went to agency at same price, after a month dropped to 815. He took it off the market for a month and put it back FSBO at 879, he sold for 850.

Offline thaber

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Re: Selling a home - Should I get a realtor
« Reply #56 on: October 23, 2018, 11:41:54 AM »
a good selling agent does a lot more than put up a sign and put the house online. Showings, stagings, advice on what small things you can do to appeal to a broader audience, etc. I've seen homes that weren't getting offers with one agent go for 10-15% above asking with another. Don't underestimate the value of an experienced professional. You'll very easily make back your 2-3%. It'll sell quicker nad you'll save yourself a headache or 10.
Standard full commission on an SFR is 5% where I live, and the home prices start at 1.8mm for a tear down. Every market is different though.

Offline xodus8

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Re: Selling a home - Should I get a realtor
« Reply #57 on: October 23, 2018, 11:46:45 AM »
Can anyone recommend some agents they have dealt with personally? There is one agency Elite connect, they have an interesting strategy they put an asking price on a house that's below market value and then create a bidding war. Supposedly this works really well, has anyone had any experience with them?

Offline Dan

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Re: Selling a home - Should I get a realtor
« Reply #58 on: October 23, 2018, 11:48:03 AM »
home prices start at 1.8mm for a tear down. Every market is different though.
And now we know why dozens of LA families moved to CLE this year ;)
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Offline henche

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Re: Selling a home - Should I get a realtor
« Reply #59 on: October 23, 2018, 11:49:14 AM »
You really need to get commission rate based on the price of the house out of your head. Do you change the percent you tip at a restaurant on a 100 and 500 bill?

You should. It doesn't really make sense that I have to tip the waiter more if I order the steak than the burger.

Flat tipping would make much more sense.