All Forum Posts by: Sarah Ziehr

1. Every brokerage I know of lets you buy and sell your own property 1x every 12 months free of any commissions paid to the brokerage you work for. You would still need to pay the commission to the broker that brings the buyer. 

2. As a broker, all compensation must be paid through your brokerage, so maybe they are confusing selling your own property with income. 

3. Best thing to do would be to check with your local association and confirm the local rules. 

4. You are correct, no matter what, you must disclose AGENT INTEREST in the property.  

Besides the statistics that say 90% of people use a broker, there are other reasons I think FSBO is not a good use of your efforts.

1. Any buyer that sees FSBO instantly thinks they are going to get the property for a discount. You say you want to save money, but now you are dealing with buyers who are going to try to low ball you.

2. Most buyers use a broker, so even if you try FSBO you still need to think about paying the broker that brings your buyer.

If you go the discounted broker route, there are brokers out there that will list your property on the MLS for you, pull comps and provide minimum services. For the discounted broker commission, you would need to have pictures taken of your property, handle all showings and scheduling appointments with prospective buyers (in my experience, when sellers try to do this themselves it always turns off buyers), negotiate the offers and work with the lenders and attorneys to get you to the closing table.

That is definitely not Pilsen. 

 http://izigg-mobile.com/

Hi Rachel, At a minimum the broker will be fined, worse case scenario their license will be suspended. If they have had multiple violations or ethics complaints, they could lose their license.  

To look up the LLC go to your secretary of state website and there should be a link to find out the stakeholders.

By the way, in dual agency the broker cannot advise you on the purchase price at all, besides sharing comps. Dual agency is a huge conflict of interest and unless you really trust that sellers agent, I hope you did not share anything confidential with him. 

I would start with asking him directly if he is a member of the LLC.

Daria, I think its really smart that you are basing your decision on the area and cash flow. 

There seems to be a lot of people here who follow crazy assumptions and rules and I wonder if they spend all their time on calculations and writing up offers that never get accepted. :)  

They say NOI is $46k, then later say actual NOI is $30k. Thats a difference of $16k per year, which equates to $1333 per month.

Where are these tax figures coming from? Make sure you are looking at your county assessor/treasurer site. That will tell you exactly what the taxes are and if there was an exemption. 

1. They need to sell, they need cash right now (they will settle for a good down payment).

2. There are lots of expenses, what are they spending $1333 per month on?? Thats crazy high. 

3. 7% cap rate is fine if the area is A++++

If you move on this I would recommend getting your own independent appraisal. 

It really doesn't matter what I would pay, or what you would pay, what matters is what does the seller want and what are comps? What are other buyers paying for similar properties? 

That is what will dictate what the property will sell for.  

Also, why would the rents be raised? Can they be raised? What are market rents for your area? Is 10% occupancy normal for your area? Is the area an A, B or C? 

I am coming up with an NOI of $12k. If that is true, then a cap rate of 7 would value the property at $84k. A cap rate of 12 would value the property at $144k. Not knowing the area, or the other variables, its impossible to say what this property is worth.