Need house selling advice - RV-Dreams Community Forum

cejones4210 · RV-Dreams Family Member

Need house selling advice

Jake62 · RV-Dreams Family Member

Dave,

We sold our house in Tucson in July, but it was through a Realtor since my company offered ReLo benefits. However, having gone thru the process, you can certainly negotiate the Realtor's percentage. For example, you should be able to easily offer 6% to the Realtor to list and potential the Realtor bringing the client for purchase. I've also seen where you could offer the Realtor 2%-3% to list your house on "MLS" and agree they don't have to aggressively market your property, i.e., Open Houses, etc.

The Market picked up in Tucson in the Spring/Summer but is now back to normal since Interest rates are on the rise.

Also, having just gone thru this, I would not advertise your house to allow prospective buyers to come into your house until "all" your issues in your house have been addressed. The buyers who come into your house will not be back if it does not show well. My Realtor said that the first 30-days are critical. But since you're not on MLS, I think you still have a good window, but I would get these all these items fixed/repaired/replaced before trying to negotiate your house to be listed on MLS and have more prospective buyers come thru the house.

Good luck ...

The Restless Youngs · RV-Dreams Family Member

Getting your listing on the MLS is important and I know in some markets you can purchase packages for a flat fee MLS listing package that gets your house out on the MLS. We sold two houses by using this service....end up doing a lot of the leg work yourself but exposure was important. You can list open houses, etc via your posting. Google flat fee MLS listings to see what's available in your area. We did offer 2.5% to realtors so there was an incentive for them to bring their clients to our house. If there are any new or expanding businesses moving into your area, you may also want to send a flyer about your house to the local HR office that they could share with those relocating to the area.

Good luck!!

Hopefully class of 2015 as well.

GENECOP · RV-Dreams Family Member

Selling a house is about two major things, Pricing and Marketing, if you say you are priced right then you need to hook up with a competent realtor. Many people today go through brokers, and multiple listing service, without those advantages you are essentially off the market. Decide how bad you want to sell, if the answer is BAD, suck it up and get a Broker.....good luck....Ps, a broker will also tell you what you should and should not do as far as pricing, staging, painting, content, etc....

NWescapee · RV-Dreams Family Member

We used a realtor who was a marketing genius, house was only on the market 5 days, over the Memorial Day weekend, 5 offers, bidding war, etc., sold above listing price. He held 2 open houses over the holiday weekend and the driveway and street around our house were wall to wall people / cars. Did we have to pay for that service? Was it worth it to get it over quickly and not have to keep the house spotless through weeks of showings and just to be able to get the dream on the road? Absolutely, it was to us.

One HUGE selling point for us was the pre-sales inspection we decided to have done and then complete the vast majority of repairs from that inspection. Yes, some of them were nit picky, but we went ahead and did them. Our inspector then issued an updated pre-sales inspection and every single bidder waived any further inspection. Our agent told us that at one point during the open house there was a line 6 people deep to look at that report. Our agent said it was worth it's weight in gold. That also helped facilite the closing and not having to go through an inspection, wondering what a different inspector might find.

Jake62 · RV-Dreams Family Member

Just to add to NWescapee's comments on the Home Inspection. It was "crucial" to in selling our home within the first 30-days. We had a "cleared" Termite Inspection, HVAC, Electrical & Plumbing, Roof (My Realtor thru-in an additional 2-year warranty at her cost), Major Appliances, and Pool/Spa. Basically, the buyers were assured that all issues were corrected or were never an issue and, the house was thoroughly "scrubbed" for the white glove test. And to follow-up to EWescapee, it's worth not having to keep the house in that condition "month-after-month" which certainly wears on someone over time.

Good luck

RVKevi · RV-Dreams Family Member

Something we did, which I do think helped, was to offer a one year home warranty that our realtor told us about. It is paid for as an item at closing out of our profit, but IIRC didn't cost very much, but gives the new owner some peace of mind.

Ckerr · RV-Dreams Family Member

Okay, I'm a little biased here being a Realtor...

The other responses are correct. If you really want to sell your home, find a great Realtor -- interview several -- Ask them to bring marketing proposals and sample marketing materials when they come to meet with you. And the Realtor's commission is negotiable. One of the things a Realtor can tell you that you can't find on your own in many markets is what comparable homes actually SOLD for -- not what they were listed at. Often 2 very different things...

Sometimes pricing a home too low is a negative. It makes people wonder what is wrong with it relative to the other homes and they don't come look.

So my advice is to find a great Realtor and negotiate the commission. But don't beat em up too hard because the good ones earn every penny and more.

If you still want to list it yourself and use a flat fee service to get it on the MLS, make sure you state that you are willing to pay the selling broker at least 2-3%. In the real world of real estate, your listing agent splits their commission with the selling agent -- they don't keep the whole fee. And if you don't make it clear you will pay them many Realtors won't show your listing to their buyers. Why work for free?

The suggestion about offering the 1 year residential service contract (that's what we call them in Texas) is a great one. It gives the buyer the piece of mind that if the AC or furnace or dishwasher etc gives out in the first year they are covered. They run between $350 and $500 here in Texas depending on what's covered and it gets paid at closing from your profit as they said. You might also be able to get coverage while your home is listed covering all those same things for a nominal additional fee -- maybe $50 or so. I don't know if you can do that listing it yourself, but definitely available when using a Realtor.

Good luck!

Technomadia · RV-Dreams Family Member

When I first listed my house, I did a 'for sale by owner' (FSBO) with flat fee MLS listings. I think we got about 3 showings and no offers after about 4 months.

I then listed with an agent - voila, had a cash offer and closing almost right off the bat.

What I found out, at least in the market we were in, a lot selling agents don't push FSBOs. They like working with a listing agent who has experience with all the paperwork (and managing the sellers to get moved out, etc.) that has to be done to successfully complete the sale.

So unless a client comes to them really wanting to see a FSBO listing, they don't really include them in packets of information about current listings to potential buyers. Especially in a market where there are many listings out there.

So my advice... if FSBO isn't working for you and you want to sell your house in a reasonable time frame - get an agent. They're worth every penny they earn to get your house sold and successfully closed. And heck, they may even be able to net you a higher sales price than you're listed at, which will more than cover the commission.

- Cherie

Dance Chick · RV-Dreams Family Member

We just recently sold our condo in central FL. The market there has been absolutely horrible, but is now beginning to be better.
We sold it in 2 days with a realtor. We also offered the 1-yr. warranty-around $400-$450.

According to our realtor, what helped it sell so fast was it was in absolute move in ready condition. Yes, we had spent some money to get it ready, but we didn't sit on the market, spend HOA fees, pay real estate taxes while waiting, and all the other expenses.
We had already moved and weren't living there. There was not one single thing the buyer needed to do to move in, and this one is really important in today's market...it was updated. With the decorating shows on TV, today's buyer wants the latest look. I think that is one of the keys to a quick sale in a decent market.

I would step back and look at it with a new, fresh, honest eye...how's the pricing and what condition is it in? Will the buyer be able to move right in and not have to fix or update a thing?

Good luck. I hope it sells tonight!!!

Dog Folks · RV-Dreams Family Member

Get a good professional appraisal. The banks won't let most buyers pay more than that anyways.

That is the only way you can be sure you have the right price.

cherylbrv · RV-Dreams Family Member

I am hesitantly prepared to list the house with a broker when the time comes. In the meantime, I have mine listed on Craigslist with the following disclaimer:

"We are recent empty-nesters and ready to retire. We have lived here for 20 years and it has been a wonderful home and community for our kids to grow up in. But now it's too much house for just the 2 of us and it's time to move on to the next chapter in our lives. The home is 30 years old and structurally sound; it just needs a bit of "prettying up." We are currently in the process of doing all the work ourselves and plan to list it at $xxx3 when done. However, we would be very happy if someone who likes to putter would be interested in buying it. We are knocking off $xxx (a significant amount) for someone else willing to do the work so that we can retire sooner (the actual work remaining will only cost about $10,000, so this is a great bargain!)."

I've had 3 people look so far, but I guess they're finding homes in a similar price range that are move-in ready.

Good news is that barring any medical or car emergencies, we just got a few extra dollars so we can do another project!

cejones4210 · RV-Dreams Family Member

Thanks for all the comments.

Cherie, that is just where we are, it's listed on the MLS and FSBO has it on Realtor.com too, so it's a matter of biting the bullet and listing with a realtor.

We had a realtor look at it before we decided to list on FSBO, so we are pretty on target with price before a realtor fee. Every realtor we have talked to and they have shown the house, said the price is not the issue. All of them said they would be glad to list it, but wanted 7%. 2 were willing to take 3 1/2% if we didn't list it but they found the buyer. 2 others were willing to take 2%. None are going to send buyers our way unless we list. That I understand and respect.

All of them told me that current buyers in this area prefer new because they don't want to make changes. Our neighborhood is a very desirable one, but there is still lots of new construction two streets over. The house is move in ready especially with the new carpet. No repairs on anything are needed. The roof was replaced due to hail damage a couple months ago. Every house on our street has had to replace. My understanding is also the city council made a decision that allows new home construction a 5 year exemption from property taxes,........ what a shot in the foot of existing homes and sellers. We aren't in a rush, but we would like to move forward in our plans.

We sold our previous home with a warranty and will probably do that with this one. Something I forgot. Now just need to decide if we want to list with a realtor and up the price, so we can still get the amount we need.

Cindy T · RV-Dreams Family Member

We sold our home when the market was really bad, but it still sold quickly. Our realtor had the house professionally staged & we also replaced all our white appliances in the kitchen with stainless steel. We already had granite countertops & upgraded cabinets. Stainless steel in the kitchen was something buyers in our area were looking for. Having the house staged plus new appliances helped ours sell quickly.

WestWardHo · RV-Dreams Family Member

For what it's worth, it's my impression that few buyers these days want to do the cosmetic work themselves, it's all about first impressions. I'm glad to hear you're getting good pricing feedback from showings because I've also often felt FSBO's were priced higher than current market but I'm sure it's not true for all. Just FYI, I had our house listed on Craigslist for c couple of months and lots of emails about it but no showings. Realtors sold twice (long story) before the ink was dry on their listing contracts.

Sherry

cejones4210 · RV-Dreams Family Member

I'm thinking we need to list with a realtor, but Dave wants to wait. I'll let him think about it.....
Hopefully, he'll come around soon. Thanks for all the comments. Looking forward to getting on the road and meeting some of you.

Terry and Jo · RV-Dreams Family Member

This may not be an option for you, but I'll describe our selling process for you. We were trying to sell our home back when the markets were really bad and our home was in that price range that wasn't selling all that good. We worked with a realtor for 2 1/2 years with no luck. Our realtor even told us she would only charge us for 2% instead of the normal 3%. After that length of time we decided to sell ourselves and Jo, my wife, found a realtor here in Oklahoma City that would list our home on the MLS for a flat fee of about $300. In addition, they told us that if we decided to let them do the paperwork related to the closing, title, etc., that they would do that for us a flat fee of $1500.

Eventually, we did sell and to a couple where the wife still held a realtor's license, so she did all the paperwork for nothing because we dropped down to the price that they could afford.

So, if you still consider FSBO, see if there is a realtor in your area that would list and do paperwork for flat fees.

Terry

cejones4210 · RV-Dreams Family Member

Terry, that sounds like a great idea. I will discuss with Dave. We know a realtor who just might go for this as she is the one that we worked with when we were transferred up here. Thanks!

cejones4210 · RV-Dreams Family Member

Normal 3%??? Around here, normal is 7% and if we stick with selling ourselves, but a realtor brings the buyer they expect 3.5%.

Terry and Jo · RV-Dreams Family Member

cejones4210 wrote:
Normal 3%??? Around here, normal is 7% and if we stick with selling ourselves, but a realtor brings the buyer they expect 3.5%.

Here in Oklahoma, the going rate is at 6% total, which is split 50/50 between the seller's realtor and the buyer's realtor. So, our chosen realtor would have received 3% normally, but since we had worked with her before (and she liked us), she opted for 2% if she were still our realtor.

When we set up via the FSBO method, we would still have had to pay a commission to the buyer's realtor if they chose to go with their own realtor. We set the commission amount and listed it as a part of the contract that the commission would be 2.5% for the buyer's realtor. I had one call and want to show our home to a family member of hers, but she insisted on 3%. When I told her no, she opted to not even show the house to her family member.

All in all, we were glad of the way things went because a very deserving couple bought our house. Enough so, that we offered them the opportunity to move in the weekend before the closing. It worked out well for them because on the day of the closing (at 4:00 pm), they thanked us profusely for allowing that. It turned out that his company was taking a bunch of the employees to Hawaii. They would have been closing on Friday afternoon, moving overnight, and having to be ready to fly to Hawaii at 1:00 pm the very next day. Everything to be done within 24 hours.

Terry

-- Edited by Terry and Jo on Friday 16th of August 2013 07:06:54 PM

K & E · RV-Dreams Family Member

We sold our house in Wisconsin in May of 2010. We listed it for a flat fee of $500 with a realty company that puts it in MLS, but you do all the showings. We had four showings in 6 months. Then we listed it with a full service realtor who sold it in five months, but we had 3 or 4 showings a week. What we discovered is that other realtors don't show the FSBO properties unless the buyer specifically asks to see them. We thought buyers would be looking at listings online more on their own. It appears most buyers rely on a realtor to find and show them properties. We paid 6% commission and it was worth it to get it sold. We also offered the home warranty for $500 and think it was worth it.

We were told that when the housing market is hot, FSBO works. But, when the housing market is down, you need a realtor to get it sold. At least, that was our experience. Good luck!

cejones4210 · RV-Dreams Family Member

In IA & IL the normal rate is 7%. A realtor for the buyer is these states usually insist on 3.5%, but we have had 2 that would take 2%. But they sure did not encourage the buyer. Both times led the
To other homes where they would receive either 3.5% or the full 7%