I would look to cut down on the Realtor/marketing cost by becoming a Realtor and going with a broker who does (at least) 70/30 your favor.?
I would go one step further and suggest staying away from the big firms that take a big percentage of your commission.
As an example, a 30% split on this $200K sale would equate to about $1800. You can probably find many smaller brokerages who would take a flat couple hundred dollars (or less). Over a few transactions per year, the savings adds up!
Looks great, the staging goes a long way too…simple. Hope it sells quickly!
I don’t know if you have posted the #s for this project in another post (if so where), I am always interested in what deals look like in paper if you care to share.
Sorry Jonathan,
I was so busy trying to get the picture in my post that I forgot the numbers.
Purchase price $62900
Closing cost on purchase $3100
Total = $66,000
Rehab= $45000- I just rounded up to the nearest $1k
Holding costs- We bought cash so holding costs like light and utilites were under $100
Realtor fees +5% closing cost help $19,700
Sales price $197,000
Expected profit $66,300
Sorry Jonathan,
I was so busy trying to get the picture in my post that I forgot the numbers.
Purchase price $62900
Closing cost on purchase $3100
Total = $66,000
Rehab= $45000- I just rounded up to the nearest $1k
Holding costs- We bought cash so holding costs like light and utilites were under $100
Realtor fees +5% closing cost help $19,700
Sales price $197,000
Expected profit $66,300
Gotta love those numbers.
The pictures look amazing. Hard to believe that was "just" a $45k rehab. Would love to see some "before" pictures.
It is so awesome to see a finished rehab product. I get giddy just looking at the pictures. Feel like going out and buying something...oh wait, I did :D
I would look to cut down on the Realtor/marketing cost by becoming a Realtor and going with a broker who does (at least) 70/30 your favor. It's an excellent way to keep track of market trends, find your own buyers for your rehabs, control the marketing (you'd be surprised at how many Realtors have cost their sellers buyers by not being professional yet the seller has no idea) and keep costs down.
Again good job Ophelia! I think you've made me a fan of staging. How many bedrooms and baths?
I would look to cut down on the Realtor/marketing cost by becoming a Realtor and going with a broker who does (at least) 70/30 your favor.?
I would go one step further and suggest staying away from the big firms that take a big percentage of your commission.
As an example, a 30% split on this $200K sale would equate to about $1800. You can probably find many smaller brokerages who would take a flat couple hundred dollars (or less). Over a few transactions per year, the savings adds up!
Agreed J Scott. I only suggested the 70/30 outfits because I'm thinking any less (correct me if I'm wrong anyone) may not offer much support at all. I see the 50/50 outfits like Weichert and they offer tons of support for the newbie agent who has no real working experience in real estate. My 70/30 EXIT Broker gives some support. The folks at Remax where I hear there's no commission split but do require a $1k/month desk fee (again this is what I hear) expects you to be able to swim with the rest of the sharks. Might not be good for Ophelia who is sort of new. Just my opinion.
I'm at work and only able to access the site via blackberry so will post before pics later as well as answer questions however with my current full time job the bank doesn't allow me to hold a realtors license as it's a conflict of intrest. So all discussion about that is null and void until I do real estate full time or work for a company that doesn't have the restriction.
In your first post, you used "we bought this house". Have your partner get the license then. Plus, if you are buying REO's, you get the buy commission as well. Just food for thought.
Great job! The kitchen is sure to be a show stopper during your showings. Thats a really nice fridge your selling with your house. Are most homes in Maryland sold with a fridge?
Jeremiah- yes there are before pictures will try to post them before I head off to work this morning.
Luis, Amanda and Justin thanks for the wonderful feedback.
Ibrahim- Its a 3 bedroom 2 full baths and 2 half baths. - there was no roof work done- the bank had done a new roof- we did change the siding however it was an ugly blue color when we first bought.
Kevin-Thanks so much- I'll post before pictures as soon as possible- rehab took exactly 5 months- yesterday was 5 months to the day that we bought it- Longer than it should have taken.
Justin- As far as the whole realtors license will have my uncle look into if he wants to pursue that- I'm not able to do that due to my current employer.
Raj- I'm located in PG county maryland.
Zak- Thanks for the comments.
Stinson- Yes houses are usually sold with a fridge in maryland- The applicance I actually got them at a 4th of july sale so I bought the whole set including microwave for $2300
Tim- Thanks for the comment- I scoured mls for the property, its also in a neighborhood we knew as I lived there years ago and my uncle and I also have a few rental properties in the same subdivision- I'm an MLS junkie- I look on it morning, night and while at work.
I search a lot of RE sites but do not have direct access to MLS. I do like to see that success can be found this way. I'm guess you made a low offer on a property that was sitting on the market for a while?
No we made an offer on a property just listed sight unseen for the list price- I thought list price was pretty fair so didn't think we needed to low ball-asked for zero closing and cash offer. My uncle usually says I can sniff out properties. Too bad I don't have the cash to get them-lol.
I see something I like and text the realtor and we go from there.what kept happening was I'd see a property I like we go visit- its on the market 6 months no offers and as soon as I like it and make an offer, they got an offer day before- felt like someone was watching me.
There was a split foyer on the market for 56k- we just had snow and I think we will take it subdivision can sell for 200- they had 26 offers.
So this came on and we waited the 13days and put in the moment it was available to investor offers