hire a realtor. You dont want to drive there all the time and open a house for months. Figure the realestate commission and tak it on to the price you want for the house.
He said he wasnt in a hurry to sell. That was the reason for the tak on commision advice. Abviously, if you dont have it priced right it will not sell, realtor or no realtor. If someone isnt in a hurry, lives 50 miles away, and is aware they are in a slow market, what does it hurt? If nothing else you might gain some insite on what needs to be improved by having some realtors, as well as potental buyers come through the property.
Not to metion the property might even sell !
I was just wondering if it is ever truly worth it to sell yourself....
I tried to sell a house one time FSBO but didnt have anyluck. I Tried to sell it for 3 months. Open houses, newspaper ads, sign, and fliers in the take one with out any luck. 2 months later a realtor sold it for $10,000 more than i was trying to get by owner, because I taked it on to cover my commission.
You failed to acually give any advice Monk, You are the only one that suggested taking on cars and trips and I do agree with you that is dumb advice. Probably ranks #1 ive seen on this site.
[ Edited by Palmguy30 on Date 02/05/2006 ][ Edited by Palmguy30 on Date 02/05/2006 ]
I believe that the greatest benefit to using a Realtor is the local MLS.
In my opinion, that is really what you are paying for, for the exposure that the MLS offers.
Also an agent deals with escrow and loan proceedures and closings....however, I would never pay an agent to list my house without MLS participation.
Historically homes sold without the use of a real estate agent have sold for less than those where there was agent representation...
Depending on the type of sale and equity base in the property will dictate if an agent is required and should be used....
On a seller wrap or a Subject to deal I wouldn’t use an agent as these deals typically don’t have the up front room to pay commissions and are outside the parameters most brokers are comfortable representing..
However if you have a more traditional transaction and have equity sufficient to pay commission by all means take advantage of the agent and their broker...
Keep in mind that these brokers almost always carry an errors and omission insurance policy which, although protect them, it also affords a deep pocket if there is a future claim...
The 6% commission may seem expensive how ever as investors it may not be the highest and best use of our time to try and market properties ourselves over hiring an agent to facilitate the procurement of a sale and the management of escrow.
We should be out buying more houses looking for more deals… trying to save the 6% you pay in commission may stop you from finding the deal that would earn you 10 times that amount.
Especially if you as an investor are marginally experienced at best...
As you gain experience and have the ability to manage all situations then the role of an agent will diminish, but until that point they are more valuable than the mere MLS system they use.
Once you are a seasoned investor I would turn the tide two-differnt directions...
One method would be to use a flat fee plus MLS agent, most will charge 495 plus the amount you offer the selling agent. The downside to this is the open relationship and the requirement of the MLS system that these agents, in advance, notify other agents that your listing is in fact without representation.. This could cause the selling agent the feeling that they will be doing all of the work...
The other method is to use the "very Best" agent on your city to market your properties... the positive here is to use their reputation to sell your house. These agent sell house because they are NO BULLSHIT personalities and other agent know that doing a deal with them will be smooth and profitable...
I look at agent much like I would an attorney or legal battle... Sure if its simple I can go to small claims court and fight my way through it or I can hire the very best and win every time...
I Like winning...
As far as what to pay an Agent, that depends on your motivation to sell the house...
You can penny pinch your way through everything or pay the going rate and get the job done....Right...
Most agents don’t know the difference between a passive contract and an active contract... Unless you do you better hire the very best and they don’t work on a discount...
_________________
Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 02/07/2006 ]
Good advice....
However, the most successful agent in my town is also known as someone who will list at a discounted price rather than at the price that could be had on a given house, because she is too big to be bothered with details...
So I personally would not list with her.
She has assistants, etc.....big timer....
I have a very good agent who told me she would charge 4%, I could offer to pay 5% with the other agent receiving 3%.
I agree...the listing agent is basically a free ride...the selling broker earns their money...they are the ones that give you exposure...and the thing they all have in common is the MONEY. So if you pay full commission to the selling agent + a bonus (ex: $500. or $1000.)you will generate super traffic...in that they do not share the $ bonus with their broker...your place will be shown, you can bet on it....regards, CWal
Ruman...sorry, i could have rephrased that a little better...but, of all the houses I have listed over the years i have never had the listing agent sell one of them...now if you ask me what is more important "exposure" comes to mind...other than entering the listing in the mls, pictures & a sign...exposure to me means actually showing the property. The agent that is the hustler really earns their money & i feel that an even split between listing & selling is not "JUSTIFIED"...just my opinion of course...regards, CWal
hire a realtor. You dont want to drive there all the time and open a house for months. Figure the realestate commission and tak it on to the price you want for the house.
He said he wasnt in a hurry to sell. That was the reason for the tak on commision advice. Abviously, if you dont have it priced right it will not sell, realtor or no realtor. If someone isnt in a hurry, lives 50 miles away, and is aware they are in a slow market, what does it hurt? If nothing else you might gain some insite on what needs to be improved by having some realtors, as well as potental buyers come through the property.
Not to metion the property might even sell !
I was just wondering if it is ever truly worth it to sell yourself....
I tried to sell a house one time FSBO but didnt have anyluck. I Tried to sell it for 3 months. Open houses, newspaper ads, sign, and fliers in the take one with out any luck. 2 months later a realtor sold it for $10,000 more than i was trying to get by owner, because I taked it on to cover my commission.
You failed to acually give any advice Monk, You are the only one that suggested taking on cars and trips and I do agree with you that is dumb advice. Probably ranks #1 ive seen on this site.
[ Edited by Palmguy30 on Date 02/05/2006 ][ Edited by Palmguy30 on Date 02/05/2006 ]
You failed to acually give any advice Monk...
Incorrect.
My advice was to not follow your advice.
[addsig]
I have read and I believe that open houses and ads in glossy real estate publications are more about marketing the realtor than the property.
I believe that the greatest benefit to using a Realtor is the local MLS.
In my opinion, that is really what you are paying for, for the exposure that the MLS offers.
Also an agent deals with escrow and loan proceedures and closings....however, I would never pay an agent to list my house without MLS participation.
To the original question....
Historically homes sold without the use of a real estate agent have sold for less than those where there was agent representation...
Depending on the type of sale and equity base in the property will dictate if an agent is required and should be used....
On a seller wrap or a Subject to deal I wouldn’t use an agent as these deals typically don’t have the up front room to pay commissions and are outside the parameters most brokers are comfortable representing..
However if you have a more traditional transaction and have equity sufficient to pay commission by all means take advantage of the agent and their broker...
Keep in mind that these brokers almost always carry an errors and omission insurance policy which, although protect them, it also affords a deep pocket if there is a future claim...
The 6% commission may seem expensive how ever as investors it may not be the highest and best use of our time to try and market properties ourselves over hiring an agent to facilitate the procurement of a sale and the management of escrow.
We should be out buying more houses looking for more deals… trying to save the 6% you pay in commission may stop you from finding the deal that would earn you 10 times that amount.
Especially if you as an investor are marginally experienced at best...
As you gain experience and have the ability to manage all situations then the role of an agent will diminish, but until that point they are more valuable than the mere MLS system they use.
Once you are a seasoned investor I would turn the tide two-differnt directions...
One method would be to use a flat fee plus MLS agent, most will charge 495 plus the amount you offer the selling agent. The downside to this is the open relationship and the requirement of the MLS system that these agents, in advance, notify other agents that your listing is in fact without representation.. This could cause the selling agent the feeling that they will be doing all of the work...
The other method is to use the "very Best" agent on your city to market your properties... the positive here is to use their reputation to sell your house. These agent sell house because they are NO BULLSHIT personalities and other agent know that doing a deal with them will be smooth and profitable...
I look at agent much like I would an attorney or legal battle... Sure if its simple I can go to small claims court and fight my way through it or I can hire the very best and win every time...
I Like winning...
As far as what to pay an Agent, that depends on your motivation to sell the house...
You can penny pinch your way through everything or pay the going rate and get the job done....Right...
Most agents don’t know the difference between a passive contract and an active contract... Unless you do you better hire the very best and they don’t work on a discount...
_________________
Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 02/07/2006 ]
Good advice....
However, the most successful agent in my town is also known as someone who will list at a discounted price rather than at the price that could be had on a given house, because she is too big to be bothered with details...
So I personally would not list with her.
She has assistants, etc.....big timer....
I have a very good agent who told me she would charge 4%, I could offer to pay 5% with the other agent receiving 3%.
Thanks.
I agree...the listing agent is basically a free ride...the selling broker earns their money...they are the ones that give you exposure...and the thing they all have in common is the MONEY. So if you pay full commission to the selling agent + a bonus (ex: $500. or $1000.)you will generate super traffic...in that they do not share the $ bonus with their broker...your place will be shown, you can bet on it....regards, CWal
Ruman...sorry, i could have rephrased that a little better...but, of all the houses I have listed over the years i have never had the listing agent sell one of them...now if you ask me what is more important "exposure" comes to mind...other than entering the listing in the mls, pictures & a sign...exposure to me means actually showing the property. The agent that is the hustler really earns their money & i feel that an even split between listing & selling is not "JUSTIFIED"...just my opinion of course...regards, CWal