BritGuyTN

how is the housing market in spokane?

if it is a bit slow you should be able to negotiate a realtor down to 5 - 4.4% of the purchase price

What you need to know is that he does not get even half of the commission.

Taking an example whereby thje commission is 6%, 50% of that goes to the BROKER (not realtor) whose agent brought the client along

the other 50% goes to the BROKER who owns the firm that your realtor works for.

The respective agents get a cut out of that 3% piece of pie. It could be something like 75%....

I personally would not reduce the percentage that goes to the realtor who bring a able buyer, but the 3% to the listig broker is definitely up for negotiation...

Unless you have a lot of time and/or the market where you live is robust I would not bother doing a FSBO, if you price it wrong or in some other way mess up then the house can get shop worn and potential buyers start to wonder whats wrong with it.

An associate of mine is trying to flip a house that they put a significant amount of cash into (over $100k) and they started out listing it at $449k nearly 6 months ago, now they are down at $379k (a bargain) and still donlt have any offers....

BritGuyTN

there is likely to be closing fees from the attorney/title company... - just a few hundred

jen_andreson

They are indeed! Do you know one you can use? Find a reco and you can try negotiating commission if you feel confident enough. I know friends who got theirs down to about 4% (every little helps...).

You'll have the commission, possibly closing costs, and some incidentals like title and things to have notarised. Closing costs used to be paid by the buyer, but that's not always the case anymore. You'll want to make sure you sort this out with your agent up front. See if you can find a Washington specific website just in case there are any state or county specifics.

Do you have a mortgage? If yes, check your paperwork for any early repayment fees.

Jerseygirl

As you said earlier...legal fees. It differs from state to state but here you have to have all sorts of inspections done...fire...electrity...septic tank and drains etc.

BritGuyTN

I would personally disagree

I know a lot of full-time realtors and licensees, and I know only 3 or 4 who are making much more than $35-40k per year after all the expenses of professional accreditations, association dues, advertising, and general business expenses.

In my book I would not refer to people earning that level of income as 'sharks'

bit of realism....

P.S. I did get my real estate license but after about 6 weeks realised that making GOOD money is VERY challenging, and a lot of hard work...

I just use it now to reduce the cost of houses I purchase for my investment portfolio.... Getting 3% off the top is a lot better than giving my broker 3%, him taking his cut and then having the IRS take theirs....

Jerseygirl

It isn't the amount of income that makes a person a 'shark' it's their business practices.

TruBrit

yep sure was....the title company took out their fees etc etc. this time we did not engage a lawyer but if you do then that'll be extra. if you go the realtor route ask them up front what costs will you be looking at so it will not come as such a big shock....make them work for their money from day 1 and good luck

Hayley

I am using the Realtor that I bought my house with- I know she'll be after top dollar. Don't have the energy for a FSBO. My Realtor is a bitch but she'll be my bitch and I trust her to fight tooth and nail for a good price.
She lives for the job for sure but I work in banking and know from her accounts that she's not hurting in any way. dropping 10 grand a month at nordstrom is a regular thing for her, :scared: perhaps there's just not a lot of Realtor competition where I am?.

David Richardson

Sharky Realtor here. In GA you would only have to pay transfer tax ( .10cents per $1,000),termite letter or bond, optional Home Warranty that you can buy for the buyer (about $400) , any prorated RE taxes or Home Owners Association costs you owe. That's it. So to summarise - Sell home for $400,000 less $24,000 commission = $376,000 less the above $1 - $2,000 incidentals. Taxes could be fairly big depending on when they're due ( in arrears here in GA). Sell in May and taxes due in June - you will owe 11 months of tax. Sell In July and they were paid in June - only one month to be sttled by you.Big item remains the payoff of the first and any second mortgages.

Hayley

Don't worry us bankers haven't exactly got a good name.I'm assuming that if you escrow the tax thing is not an issue?

Ray

What about the IRS witholding tax..........

David Richardson

There still has to be a reconciliation with escrow. The county wants its RE taxes paid. Take another example - if in Spokane your taxes are paid in advance from escrow for the year ahead ending in Dec and you sell on June 30th , you will get 6 months taxes back at closing and the buyer will pay the now remaining 6 months . Make sense?
SR

Hayley

Yes, Obviously I will be better armed for questions with my Realtor now, thanks!

Duncan Roberts

I thought closing costs were only paid by the buyer as they are for the title, mortgage charges and other buying related things. Commission is a separate thing but lumped in with closing costs when buying. The only exception is when the buyer asks the seller to pay their closing costs, like I did. I could be wrong though.

David Richardson

Hi. Closing costs are usually settled by the buyer as part of the loan amount but it's become a negotiating point too. Sometimes, the buyer may offer full price or close to it if closing costs are met in full or in part by the seller. In new construction , where the builder wants the full price to keep a good relationship with their lenders - lenders will question you if you ask for construction loan amounts based on selling prices of X and then sell for the lower Y. Then builders will offer incentives 'below the line' to make the sale - closing costs, upgrades, bigger allowances for landscaping and so on. I'm involved in a 17 home new construction project right now and the process is quite different from a resale.