New to Real Estate · CHICAGO, IL · Member since 2019 · 11 posts · 5 votes
I purchased my first duplex property a year ago for 335k (house hack). However,I have to do a sudden move to California due to my job (military) from Chicago. I want to place it on the market but I want to avoid realtor 6% commission which would put me in the negatives. My comps are ranging 345k-370k. Do anyone have any recommendations selling my property without being in the negative?
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
5y
@Caressa Wilkinson You can try selling it yourself. However, Realtors earn their commission!
There are a lot of steps required - marketing, disclosures, showings, offers, deposits, vetting the buyer's lender and pre-approval, inspections and the negotiations that follow, appraisal and possibly more negotiations and seeing ot through to closing. Here in Maine, there's a list of about 25 different forms we need to get a property closed.
BTW, there's no such thing as a "standard" commission. You can probably negotiate a lower rate.
Look around here on BP and on YouTube and search on the term "FSBO". You might find some ideas on selling it on your own.
Thank you for your service. I would ask if you could put their commission in the purchase price, that way the buyer has to cover the cost so instead of selling for $345K you sell for $345K + 6%= $365,700.00. Hopefully,that helps.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
5y
@Caressa Wilkinson You can try selling it yourself. However, Realtors earn their commission!
There are a lot of steps required - marketing, disclosures, showings, offers, deposits, vetting the buyer's lender and pre-approval, inspections and the negotiations that follow, appraisal and possibly more negotiations and seeing ot through to closing. Here in Maine, there's a list of about 25 different forms we need to get a property closed.
BTW, there's no such thing as a "standard" commission. You can probably negotiate a lower rate.
Look around here on BP and on YouTube and search on the term "FSBO". You might find some ideas on selling it on your own.
I purchased my first duplex property a year ago for 335k (house hack). However,I have to do a sudden move to California due to my job (military) from Chicago. I want to place it on the market but I want to avoid realtor 6% commission which would put me in the negatives. My comps are ranging 345k-370k. Do anyone have any recommendations selling my property without being in the negative?
When looking at FSBO vs Hiring an agent you should know that agent's typically sell homes for more than 6% higher than the average FSBO. Sounds like you're going to lose money either way. Going with an agent you'll likely lose less.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
6% seems a bit greedy.
How about you talk to 2+ realtors and have them give their resumes? Inform them you are talking to 2+ realtors and what' is their commission. Ask if they can do better on their first number. Commissions are NOT locked in.
1. There're few services available online that you can sell with minimal agent involvement/fees, there're few companies working like this. (REX?). 2. Have it as a rental, sell it in Roofstock, you only need to pay 3%
1. There're few services available online that you can sell with minimal agent involvement/fees, there're few companies working like this. (REX?). 2. Have it as a rental, sell it in Roofstock, you only need to pay 3%
How about you talk to 2+ realtors and have them give their resumes? Inform them you are talking to 2+ realtors and what' is their commission. Ask if they can do better on their first number. Commissions are NOT locked in.
Rental Property Investor · OH (ohio) · Member since 2018 · 166 posts · 113 votes
5y
@Caressa Wilkinson
I agree with James a good realtor should be able to offer enough value to pay their own commission. If you want to do it yourself look at "flat fee mls" services. They're limited service brokers that will post your listing on the mls for $100-300 so it goes to realtor.com, then you can offer the commission you want to the buyers agent. I sold two houses like this and was far better than just posting FSBO on Zillow. The 3% motivated realtors to bring me buyers and do the legwork so all I did was make a few calls and sign some papers. So it can save you 3-4%, but you have to know how to price your property and market it with decent photos, maybe some staging etc. my first house I overpriced, and it sat for two months, so did I really save 3%? Idk. The second house I priced better, and saved $2500 with a flat fee service. But it's more work and putting that responsibility to do the legwork on yourself
Real Estate Broker · San Diego, CA · Member since 2015 · 725 posts · 129 votes
5y
@Caressa Wilkinson Go with a flat fee MLS listing ($100 - $300). Get pro photos, price it fairly or slightly below market, and offer a market rate commission to buyers agents (typically 2.5 - 3%). Let the buyer agents do their job.
When it comes to paperwork, get a transaction coordinator (~$450) and they will make sure you have all the correct disclosures and the sale is moving along the way it should. They will also be able to answer general questions that you have.
Yes, it will be a bit more work than using a full-service broker (though not a huge difference), and you will save a substantial amount of money. If you get a buyer that comes along without an agent, you will also not have to pay a buyer agent commission (be sure to check your listing agreement confirms that) and the transaction coordinator should be able to assist in putting everything together (may be a slightly higher fee).
You may hear some people saying that agents will sell it for more money. I've seen studies from independent third-parties that totally disagree with that statement (Northwestern, Stanford). I'm only aware of 1 study that slightly suggests agents will make you more money and that study was done by... the National Association of Realtors (NAR). One of the issues with the NAR study is that it doesn't factor in the fact that lower priced homes (e.g. mobile, manufactured, etc) often sell FSBO because agents can't make the same commissions on those listings so they don't take them. The NAR study is not making fair comparisons and it's causing otherwise reasonable agents to create the false narrative that they will make you more money.
Real Estate Investor · Minneapolis, MN · Member since 2011 · 49 posts · 19 votes
5y
You sound like a proto-typical self MLS listing seller. Reputable self MLS listing brokerages provide professional guidance, the same or better exposure as traditional agents, and the required forms for $300-500. They typically offer additional services for sellers who need them, such as pricing assistance.
Just be careful, there are some TERRIBLE self MLS listing companies. Many of the most advertised and cheapest websites you may find have tons of really ticked off, unsuccessful, and unsatisfied sellers who have posted negative reviews. Avoid any company if you don't see hundreds of positive reviews on google my business, the Better Business Bureau, Facebook, etc.
New to Real Estate · CHICAGO, IL · Member since 2019 · 11 posts · 5 votes
5y
@Spence Kal Thank you so much for your feedback and your experience by putting things in perspective for me. I totally agree a Good Realtor should offer enough value to pay make their commission and not leaving the seller to pick up the remainder. I will also look into the MLS listing as well.
New to Real Estate · CHICAGO, IL · Member since 2019 · 11 posts · 5 votes
5y
@Jonathan Minerick You gave me TONS of information and so thankful for it by giving me HOPE. Speaking numbers painted a good picture for me as well. Thank you!
Florissant, CO · Member since 2013 · 184 posts · 69 votes
5y
If you have the time - you can sell it yourself. I've only sold 2 houses - both FSBO - so I'm no expert, nor 'experienced'. Even if you sell it yourself - you will likely have to pay the buyer's agent commission - however, you can specify in your listing - or counter-offer - how much you're will to pay them. When I listed FSBO - I always encouraged buyer's agents and stated an upfront 2%. The key to FSBO (IMHO) is knowing what your property is worth and negotiating the best deal. Know what your property is worth - go to some open houses and talk to agents about the local market - good free info (though I'm always careful not to interfere with a potential 'real' buyer, and I always tell the agent that I'm not buying so they don't get the wrong impression). Depending on your market - don't be afraid to decline the first offer. Just keep the negotiation alive while allowing additional showings/offers. I had several 'low-ball' offers on my last sale, and I just waited - most came back with a better offer; or I countered with a price slightly above my asking - just to keep the negotiation alive. If you go FSBO - 'marketing' (I think) is Everything! Take good photos, prepare flyers and have them available out front for 'passer-bys'; I even dropped flyers off at local RE offices just to let them know my house was on the market. I listed on Zillow and a flat-fee MLS. As I recall - Zillow got it done for me. Search the forums for many more conversations about FSBO, Zillow, Flat-fee etc
Florissant, CO · Member since 2013 · 184 posts · 69 votes
5y
ok - can anyone tell me why my posts are double-spaced?? this is the second of 2 posts and I can't find anything in the 'formatting' options to cause this
The REIA in Chicago is very strong and well populated. You may want to reach out to them and see if they have anyone looking for a duplex. If the rents support the price, you may be able to sell direct to an investor. Good luck and let me know if you need any info on the REIA.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
Sorry, I've done a few resi deals with 6% guys and 3%-4% guys - I don't see much diff beyond the 6% guys send out hired help and don't answer questions.