Notices

Selling of a home

Old 04-27-2007, 11:13 AM
  #1  
Senior MemberCaptains Club Member
Thread Starter
 
Garett's Avatar
 
Join Date: Feb 2003
Posts: 24,085
Default Selling of a home

Garett is offline  
Old 04-27-2007, 11:14 AM
  #2  
Senior MemberCaptains Club Member
Thread Starter
 
Garett's Avatar
 
Join Date: Feb 2003
Posts: 24,085
Default Re: Selling of a home

I'm in the process of selling my home for another place hopefully out in the country.....still looking for that perfect place that I can afford..... ......man you would think everyone is rich!

- I've extensively shopped for a agent and feel comfortable that I have a good one.
- I've had several Realtors through the house to get a price and a "what should be repaired list".
* only one realtor suggested I replace the kitchen floor for something that is a little more up to date.
- Wednesday evening the Misses and I had a Mortgage Broker over to find out what our options are for a new place......results would be in a day or two.......still havent heard from her.
* Is it advisable to contact several Mortgage Brokers and try to play them against each other?
- had flooring people in early yesterday afternoon for a quote - 22' x 12' = $900 installed.....construction grade linoleum.
* I have not signed into an agreement with an agent/ Realtor nor is my house MLS listed as of yet.

************************************

Then later in the afternoon one of my neighbors comes over and expresses a strong interest in purchasing my house.......only light chit-chat at the time. (well call this party, A).
Then later again in the afternoon another neighbor calls and expresses a strong interest in purchasing my house. (well call this party, B).

************************************

- last night I go over to both couples homes (A then over to B) and have that sit down chat.....they are both very serious parties! Neither party at this time is aware another neighbor is interested in my property, but A expressed concerns that party B might make a move on my place as well. Actually party A last night offered me a check for 10k under my suggested listing price.......I didn't take it.....I told them they were 5K light. The second party did not offer me a check or suggest a deposit at the time.....they know my price and as far as I can tell they appear to be very seriously interested.


Now what do I do?
- Ive never sold a house privately? What do I need to know about?
- All Realtors that Ive had through the house feel I should be able to sell for approx. 20% over anything that has ever been sold in my neighborhood......Ive reworked my home from top to bottom and inside to out.
- Now I have two interested parties in my home and both parties are very good neighbors to the Misses and I. How do I handle them, do I play each against each other and drive the price up?
- How do I deal with the realtor Ive selected?

Garett is offline  
Old 04-27-2007, 11:28 AM
  #3  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Feb 2001
Location: Arlington, VA
Posts: 4,203
Default Re: Selling of a home

Here's my advice:

No offense to any realtors on this board, I'm sure they're nice people, but I hate their profession. Even though the tools are out there (the internet) for home owners/buyers to list and find their own homes, the "best" information is available only to realtors. Why? So they have a purpose on this earth. They're nothing but middlemen gate keepers. And they're snakes, almost always intersted in the comission above anything else. I'm sure there are exceptions, but I've dealt with about 15 realtors in the past 8 years and they keep getting worse. I even shopped around for the last one. bottom line, AVOID the realtor at any cost.

Regarding your neighbors, do you like them? Do you want to maintain a relationship with either of them? Are you happy with your asking price? If you answered yes to all of the above, I would go to each neighbor individually and let them know that there are other interested parties (don't name names) and say that you'll take the first offer that meets your asking price. First come, first served. Don't have a bidding war. This is fair to you and the neighbors in my mind.

Good luck!
Cooper is offline  
Old 04-27-2007, 12:08 PM
  #4  
Senior MemberCaptains Club Member
Thread Starter
 
Garett's Avatar
 
Join Date: Feb 2003
Posts: 24,085
Default Re: Selling of a home

You are so right Coop about realtors.......that's why I am not going with the person that sold me the place I am selling! IMO she raked me over the hot coals several times and she KNEW IT TOO!

Yes I do like both couples, their door is just as open as mine is. In spite of what I show here from time to time I am not one to screw with people...I like to be fare so I don't have to hang my head when I'm in amongst a crowd. I like your forthright approach Coop, it keeps everything open and honest and for me that is a path I travel anyways.
Garett is offline  
Old 04-27-2007, 12:18 PM
  #5  
wjf
Senior MemberCaptains Club Member
 
Join Date: Feb 2003
Location: Charlotte, NC
Posts: 493
Default Re: Selling of a home

If you're comfortable with the price, I'd avoid an agent, since it sounds like you don't need one. I'd recommend getting an attorney to draw up the contract for you. You may not want to pay for this, but it is a lot less expensive than the 5 or 6% the realtor would get. A simple real estate contract should be a few hundred dollars. You can probably get a package deal if you agree to use the attorney for your closing.
wjf is offline  
Old 04-27-2007, 12:43 PM
  #6  
Senior MemberCaptains Club Member
 
Join Date: Oct 2002
Location: Gloucester,Ma USA
Posts: 10,782
Default Re: Selling of a home

Go for top dollar! Put it on the open market,set your price and run with it. If the neighbor's end up in a bidding war,how that "war" plays out is between them. That's not "screwing with people" that's just good buisness sense.After all, it sounds like you put alot of heart and effort improving your home and deserve top dollar. And hopefully your neighbors will realize that.
Jay A is offline  
Old 04-27-2007, 12:46 PM
  #7  
Senior MemberCaptains Club Member
 
bsmit24's Avatar
 
Join Date: Aug 2004
Location: Republic of West Florida
Posts: 17,695
Default Re: Selling of a home

We recently sold my wifes old home. We contacted a realestate attorney and he gave us all of the paper work that we needed for the purchase agreement and reviewed the contracts before we signed them. The cost was about $300. Well worth the piece of mind IMHO.
bsmit24 is offline  
Old 04-27-2007, 12:52 PM
  #8  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: May 2005
Posts: 6,194
Default Re: Selling of a home

My advice would be to hang the FSBO sign, advertise in the local papers and hold an open house or two - and see what happens from there. You can always go with a realtor later if it is not moving.

My one caveat to this is - I know nothing about selling real estate in Canada.
RI Builder is offline  
Old 04-27-2007, 01:16 PM
  #9  
Junior Member
 
Join Date: Sep 2006
Posts: 13
Default Re: Selling of a home

Garett, Let me preface this by telling you that I am a SC Realtor. A mortgage broker isn't the best resource for evaluating the best maket value of your home. We pay alot of money to participate in our Local Board of Realtors which also provides the MLS. Thats the the most comprehensive resourse for what homes have actually sold for, what they are listed for. The easiest way to determine what your list price should be is to figure out what do you need to net? Then add the agents fees ontop of that. Say you have to net 100K on the sale of your house, and you negotiate a 6% fee with your agent 3% to cobroke 3% to his office, then your list price should be $106,000. I wish you luck and good fishing, hopefully you have enough equity for a new Boat : )
johndevlin3 is offline  
Old 04-27-2007, 01:54 PM
  #10  
gsniffen
Guest
 
Posts: n/a
Default Re: Selling of a home

If you've received an offer(s) that you feel are reasonable, sell the house without a broker and only get an attorney to do the closing. You can get state specific contract forms and disclosure statements online. I've done the last two that way without any issues.
I understand your quandry about two neighbors wanting to buy. I would suggest that you approach each of them to determine their ability and desire to move forward. A lot of people play bidding games without the first desire to complete a transaction. Assuming they're both financially able (upon a bona fide offer you have a right to know about their financial soundness), ask them to complete an offer to purchase (available online) along with a deposit check that will be returned if the offer is declined. Give them a deadline and let the winner enter a contract. Be sure to include absolute dates for inspection acceptance, closing, etc.
Good luck on your sale.
 
Old 04-27-2007, 01:56 PM
  #11  
Admirals Club Admiral's Club Member
 
Join Date: Jul 2006
Location: Bermuda
Posts: 892
Default Re: Selling of a home

Negotiate a 6% fee???? Are you kidding? He has 2 people ready to buy his house. Use a lawyer. Mortgage broker was for his future loan.
edale99 is offline  
Old 04-27-2007, 03:18 PM
  #12  
Admirals ClubCaptains Club Member Admiral's Club Member
 
Join Date: Sep 2005
Location: Tennessee
Posts: 2,009
Default Re: Selling of a home

No realtor.

Your neighbors are your buyers. Like RI Builder says, put a FOR SALE BY OWNER sign in your front yard, if only for a short time. You Just might be surprised at what happens.

Develop the sales yourself. I suspect you are already talking to your eventual buyer.

By coincidence, sold some property today. We sold it to a fella who lived next door to the property.

Let us know how it goes.



Ray, Tennessee 2180DLX Carolina Skiff 90HP Honda

rayteagarden1 is offline  
Old 04-27-2007, 04:15 PM
  #13  
Senior MemberCaptains Club Member
 
Join Date: Nov 2005
Location: Chesapeake Bay
Posts: 311
Default Re: Selling of a home

Don't use a realtor. Your neighbors will only hate you for it. I represented myself both buying and selling our last few homes. I was able to find a real estate company that would list my house on the MLS with my contact info for a flat fee (around $250 for a month). Then anyone searching the popular websites will see it. Run an add in the paper and put a sign in the yard. You'll be surprised at the offers.

I got my hands on the standard real estate sale contract for my state (the one all realtors use) from a previous transaction. I used the clauses that applied and had it blessed by a real estate (settlement) attorney. The settlement attorney also handled all of the closing/title work. You'll pay for his/her services regardless of if you use a realtor, so it's not money wasted, although you can negotiate to split attorneys fees with the buyer.

It's easier than you think. You can rely on the settlement attorney for questions along the way.
bayboater1 is offline  
Old 04-27-2007, 05:16 PM
  #14  
Senior MemberCaptains Club Member
Thread Starter
 
Garett's Avatar
 
Join Date: Feb 2003
Posts: 24,085
Default Re: Selling of a home

The Misses and I chomped and chewed on this idea of putting the house up on the open market well into the wee hours of this morning..........could we get a bidding war happening on our home with strangers through a broker? If so, that bidding war would have to exceed the amount of money we could pocket if we sold it privately to one of our neighbors? I know basically all of our neighbors know what Ive done to this place and I guess that is why there is this expressed interest, whereas strangers do not. The Misses and I have looked at how much additional monies we would need to get out of this place if we were to list it to match our private sale offer. Three thou would be needed just to break even with the amount wed end up in our pockets of a private sale.

The real danger to this gamble we see is, we already know we are exceeding fair market value in our area by at least 25-30k! That is in its own right is a huge leap for my quit little area, but to hope I get a bidding war that will draw an additional 3+k more Im thinking could be a far stretch??? But who knows, my place could draw 10-15k more for all I know??? All I know the home is worth every penny and more then the asking price considering what Ive done to it, but that doesnt mean Ill ever see a nickle of what I know its worth. Some of you guys follow the stock market daily/ weekly, well thats how Ive been following the housing market here for the past 6 to 9 months....I know full well how far of a stretch my asking price is on the open market, its big for my little area of town.

Yah no the Mortgage Broker was only for know how much we can get approved for....for our next place, which will probably be double what we sell this place for.....country property is Very expensive.
Garett is offline  
Old 04-27-2007, 07:43 PM
  #15  
Senior MemberCaptains Club Member
 
Join Date: Jun 2001
Location: CT
Posts: 18,347
Default Re: Selling of a home

What am I missing? I like Garett's posts and want Coopers boat, but the first post is edited and there is nothing there. I can make no sense of any of the comments.....seriously can someone restate the problem or question???
LI Sound Grunt is offline  
Old 04-27-2007, 08:27 PM
  #16  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Feb 2001
Location: Arlington, VA
Posts: 4,203
Default Re: Selling of a home

I think there was a double post and the second is the one with the important stuff.
Cooper is offline  
Old 04-27-2007, 09:22 PM
  #17  
Senior MemberCaptains Club Member
 
Join Date: Dec 2002
Location: On the beach
Posts: 2,444
Default Re: Selling of a home

First things first.

When you sell your house will you be making a profit?

I would assume the answer is yes. If you purchased it 5 years ago you probably will make a nice profit.

Think about this. Unless you live in a few select areas of the country the real estate market is soft. So when you purchase the new house that is costing twice the amount you will most likely be buying that property at a good price and you will lock in a good interest rate.

I just want to throw this out there also. The costs to build new houses or to renovate existing houses are not going down. Materials and labor costs will continue to escalate as will the cost of land.

Now the practical side of the matter, Assuming you Are making a nice profit then this is my opinion:

Does your neighbor that made an offer need to sell their place before purchasing yours?

If so then put up the "For Sale By Owner" sign and shop for a real estate attorney. Price it right and it will sell.

If the interested party doesn't need to sell their house prior to purchasing yours, sell it to them. You can always tell them you'll take the offer if they are willing to cover the cost for your attorney. So you en up picking up a couple of grand.

Because as you claim----"for our next place, which will probably be double what we sell this place for..... Country property is Very expensive." Another 10 K will not matter much in the long run.

If you house is sold and you are shopping for a house that is worth twice the amount. You'll be in a good position because you are a buyer that can buy without having to sell a house. You have a good strong position from which to negotiate from.

When you negotiate the purchase of your next house, if you really want to get the 10K back, keep in mind that in comparison to the cost of the house you sold, it will be a lower percentage off of the new house. 10K off of the price of a 300K home is 3.333%. 10K off of a 600K home is 1.6%. So find a house that you like and negotiate hard and if it makes you feel better, try to get the 10K back.


glassman is offline  
Old 04-27-2007, 10:20 PM
  #18  
Senior MemberCaptains Club Member
 
Join Date: Jun 2001
Location: CT
Posts: 18,347
Default Re: Selling of a home

Cooper - 4/27/2007 8:27 PM

I think there was a double post and the second is the one with the important stuff.
Thanks

Wow sorry - my mind somehow just skipped from the lead post to Coopers.....this happens on Fridays after work occasionally. I assume you got the "suggested price from the realtor. If thats the case then I would put in on the market for a while either way - FSBO or with an agent for a short term contract - see what it is really worth - then you really know your options.... good advice above - an offer without a deposit MAY be nothing. You always have the option of refusing. Right now you owe neither the neighbors or the agent anything. Using the agent may save you some headaches in dealing with some aholes and MAY give your house larger exposure. I tried the FSBO route and nothing happened until I got it listed in the MLS (and a new preacher in town from the Midwest bought it....).

God Luck!!!!!! Hope you get rich - new houses aint cheap! All 3 kids are in a home search now in this "soft" market....
LI Sound Grunt is offline  
Old 04-28-2007, 12:17 AM
  #19  
Senior MemberCaptains Club Member
 
Join Date: Sep 2001
Location: Chatham Mass
Posts: 588
Default Re: Selling of a home

Other things to consider- Have you lived in it for more than 2 years- long term vs short term capital gains. Is the house you will buy more money- ie 1031 exchange -no taxes paid. Brokers up here only get 5% but houses are big money. Keep in mind the people buying your house can present an offer sheet through a broker/ friend and you still have to pay half the commission. If they know this they will take 3% off your price to not use a broker. Are the two offers cash or are they contigent upon financing or them selling their homes? If financed are they preapproved. The P+S should specify dates by which financing must be in place and closing dates. Hire a REAL ESTATE lawyer- not an ex state rep who can get you out of a DWI. If you signed up with a realtor you will have to pay them if you sell privately If they just gave you some info then you have no legal obligation to pay them although a gift cert. for a restauraunt would be a nice gesture. If you signed up it should be for a specific amount of time (probably 6 months)
GOODNYOU is offline  
Old 04-28-2007, 07:51 AM
  #20  
Senior MemberCaptains Club Member
 
Join Date: Jan 2007
Location: On The Tenna Sea
Posts: 6,212
Default Re: Selling of a home

Hey man, selling a house is no big deal. Buying one is where you have to be careful.

Sounds like you've had enough suggestions to cover the part about selling, but I would only add that you need to have a professional independent home inspection done on any house you plan to purchase. Most contracts will have provisions for this in a purchase, and it will allow you to void the contract or negotiate the cost for any repairs into the purchase price. DO NOT have an inspection done by anyone the seller or seller's agent recommends, and don't let a "buddy" do it unless that person is a professional in every aspect of home inspection. I know you have expressed your opinion of me personally, but trust me on this point.

If you have the time to weed through would be buyers and tire kickers, forget about listing your house with a realtor and hope the house you are looking at will be FSBO when then time comes as well.
TN FREEBIRD is offline  

Thread Tools
Search this Thread