Trust a real estate broker on proposed price for sale of your home? (1 Viewer)

[Otis]

Never. Do your own research and see what homes are listing for around you. You know what homes are most comparable to yours.

When we went to list, our REALTOR wanted us to list for about $10k than we should have. Her comps were from one neighborhood over that was filled with older homes and wasn't as nice as our 'hood. I told her what it should be listed at, she hesitated but I knew the price was right.

Can't stress this enough.

So many people get wrong impressions of their homes by going off listed houses. Anyone can list their house for a billion dollars if they want.

Research what homes sold for, that will give you a more precise MV comp then use current listings to decide how you want your house to fit in.

Beat me to it...."sold" is the key here not "for sale"

Yeah, for this reason, decided to follow the broker's advice. At the price they propose and given no inventory now in the area, they expect a lot of interest, possibly offers over ask, and a quick sale. Seems worth a shot.

Also ordered up one of those POD things today (my first time!11), figure I will spend Saturday decluttering, filling the thing up with anything we don't absolutely need in the house. Empty the basement, garage and attic, and have it put away in their storage until we move. It will make the moving process a lot less painful, and should force us to throw out a bunch of crap this weekend that we don't need in the first place. And then the house should show much better. WIN WIN

 

[bagger]

Putting our house on the market. Broker came back with a price that was close to what we expected, but I think a little low given some of the garbage we have seen listed at much higher prices. Of course, it's hard to be totally objective about your own house.

I'm usually a "trust the professionals" kind of guy, but in this instance, I assume a real estate broker has the incentive to list as low as possible to get a sale done fast. Sure, they could get a few more dollars if they list higher, but they're only getting 6% (or maybe 3%) of the difference, and really it seems to me they just would like to show it a couple times and get a deal done.

Am I right in my thinking? I'd like to tell them I want to list like $50k higher than their suggestion, but I don't want to be unreasonable either.

House nerds, whatcha got? TIA

tell them to list it for higher, just understanding it might take longer to sell. After 30 days if you're not getting sufficient interest you can reduce it.You are correct that the agent is incentivized for a quicker sale.

 

[Baloney Sandwich]

Take time to stage the house properly, well worth it even if you hire someone to advice you on how.

 

[fatguyinalittlecoat]

Curious how insane housing cost are on LI. If the rest of the house is as epic as the kitchen/living room I'm guessing > $1.5M for the new pad?

I'm guessing north of 2.

FML

You know you don't have to buy it right?

 

[cstu]

Curious how insane housing cost are on LI. If the rest of the house is as epic as the kitchen/living room I'm guessing > $1.5M for the new pad?

I'm guessing north of 2.

FML

You know you don't have to buy it right?

He's going to work his life away anyway so why not have the biggest house he can buy?

 

[Quez]

Curious how insane housing cost are on LI. If the rest of the house is as epic as the kitchen/living room I'm guessing > $1.5M for the new pad?

I'm guessing north of 2.

FML

You know you don't have to buy it right?

It sounds like they are already talking themselves into paying the ask.

 

[fantasycurse42]

Curious how insane housing cost are on LI. If the rest of the house is as epic as the kitchen/living room I'm guessing > $1.5M for the new pad?

I'm guessing north of 2.

Depends where in LI... If he is any of these ritzy North Shore places, 2 would be a pipe dream, more like 4... If he is a little further out, then he could be saving a few bucks.

 

[Zegras11]

Is 5% really the new norm? I'll raise this for sure.

norm is 6%.

Anyone that does it for less isn't going to put in the same effort. It costs $$ for the listing agent to market your property.

Last 2 houses I've sold and bought were all done at 5 and my wife's best friend who sells houses to Broncos players also works at 5.

My real estate attorney told me flat-out the going rate in MA right now is 5%. that was before I listed FSBO offering 2.5% to a buyer's broker.

Pretty sweet. Spoke to the broker today and asked if the commission would be "standard 6%." Probably stupid on my part, but she's a family friend. She said no way, usually it's 5%, but she does a 4% rate for friends.

interesting that the norm is 5% in some areas. 1% off for friends, lots of referrals, sell and buy is normal.

 

[bigbottom]

Is 5% really the new norm? I'll raise this for sure.

norm is 6%.

Anyone that does it for less isn't going to put in the same effort. It costs $$ for the listing agent to market your property.

Last 2 houses I've sold and bought were all done at 5 and my wife's best friend who sells houses to Broncos players also works at 5.

My real estate attorney told me flat-out the going rate in MA right now is 5%. that was before I listed FSBO offering 2.5% to a buyer's broker.

Pretty sweet. Spoke to the broker today and asked if the commission would be "standard 6%." Probably stupid on my part, but she's a family friend. She said no way, usually it's 5%, but she does a 4% rate for friends.

That is huge.

 

[Gawain]

Man, come to the south shore where you can live in RVC like a king for a lot less. All during Sandy RVC had power while the poor, huddling masses infringed from Lynbrook, East Rockaway and all the other unincorporated hovels.

 

[Otis]

Man, come to the south shore where you can live in RVC like a king for a lot less. All during Sandy RVC had power while the poor, huddling masses infringed from Lynbrook, East Rockaway and all the other unincorporated hovels.

Our broker suggested we look in RVC. I have family there. Not a bad town.

 

[tommyGunZ]

Heading to Denver?

I almost forgot about the Otis Denver shtick.

 

[Otis]

Heading to Denver?

I almost forgot about the Otis Denver shtick.

Someeeeeewheeeere over the Rainbow.

Bluebirds fly.

Birds fly over the Rainbow

why, oh why, can't I.

 

[xulf]

Denver has legal weed. Will make the long days and misery much more bearable.

 

[squidrope]

Skip to the end.

Otis overpays for new place.

Sells old place for pennies on the dollar.

Complains about having to keep working for the man and his comute

 

[Otis]

Skip to the end.

Otis overpays for new place.

Sells old place for pennies on the dollar.

Complains about having to keep working for the man and his comute

I never said there would be a surprise here.

 

[squidrope]

Skip to the end.

Otis overpays for new place.

Sells old place for pennies on the dollar.

Complains about having to keep working for the man and his comute

I never said there would be a surprise here.

Good point

 

[jon_mx]

Skip to the end.

Otis overpays for new place.

Sells old place for pennies on the dollar.

Complains about having to keep working for the man and his comute

I never said there would be a surprise here.

Is the current house you are in really too small or what? You should stay in your current house and enjoy the extra cash.

 

[Koya]

Otis - hit me with a PM. Ill make sure to get you someone who can give an appropriate value (and pricing strategy).

 

[Otis]

Skip to the end.

Otis overpays for new place.

Sells old place for pennies on the dollar.

Complains about having to keep working for the man and his comute

I never said there would be a surprise here.

Is the current house you are in really too small or what? You should stay in your current house and enjoy the extra cash.

Current house is too small, not a good layout for us, old and needs lots of work that we'd have to live through, property on a big hill which is awesome for views and light but bad for kids, tons of trees and shade kill off anything we plant, etc.

On the whole, even if we dumped 600k into the house to gut it and add on, it wouldn't be what we want. We've concluded no sense in staying. Was great for the few years we were here, we won't lose money on it, and we don't regret it, but it's time to move on.

New neighborhood we're looking at will be slightly better for us too for a few reasons. Better schools, closer to most of our family, center island and so easier access to most places we often drive, flat properties with sunlight that things can grow on, etc. etc. Also, even though the new town is "nicer" in these respects, we also get more for our money there, in part because we are now on the "Gold Coast" of Long Island, where pretty much everything is overpriced.

We're all in. Spoke to the realtor. Having a POD delivered tomorrow to empty our house of all the crap we don't need right now to move it to storage till we get to the next house and can show a house with zero clutter, etc.

 

[Otis]

Otis - hit me with a PM. Ill make sure to get you someone who can give an appropriate value (and pricing strategy).

Thanks man.

 

[Koya]

Otis - hit me with a PM. Ill make sure to get you someone who can give an appropriate value (and pricing strategy).

Thanks man.

I believe its a legal requirement for me to disclose that I have a RE license and will require a cut of the commission. Which in my case will be a round of drinks.

 

[Slapdash]

Skip to the end.

Otis overpays for new place.

Sells old place for pennies on the dollar.

Complains about having to keep working for the man and his comute

I never said there would be a surprise here.

Is the current house you are in really too small or what? You should stay in your current house and enjoy the extra cash.

He's been complaining about this house here since he bought it. I just hope this one does the trick for him (or maybe his wife), cause the transaction costs homes this expensive have got to be a killer.

Dude doesn't seem very happy a lot of the time, maybe this will help. Maybe it will make things worse.

 

[comfortably numb]

Otis - hit me with a PM. Ill make sure to get you someone who can give an appropriate value (and pricing strategy).

Thanks man.

I believe its a legal requirement for me to disclose that I have a RE license and will require a cut of the commission. Which in my case will be a round of drinks.

Pretty sure getting paid in drinks is illegal. You are only allowed to receive compensation through your licensed office.

 

[Koya]

Otis - hit me with a PM. Ill make sure to get you someone who can give an appropriate value (and pricing strategy).

Thanks man.

I believe its a legal requirement for me to disclose that I have a RE license and will require a cut of the commission. Which in my case will be a round of drinks.

Pretty sure getting paid in drinks is illegal. You are only allowed to receive compensation through your licensed office.

Apparently you don't know my office.

 

[comfortably numb]

Otis - hit me with a PM. Ill make sure to get you someone who can give an appropriate value (and pricing strategy).

Thanks man.

I believe its a legal requirement for me to disclose that I have a RE license and will require a cut of the commission. Which in my case will be a round of drinks.

Pretty sure getting paid in drinks is illegal. You are only allowed to receive compensation through your licensed office.

Apparently you don't know my office.

:reported:

 

[Otis]

I think we listed about 50k too low by going with the broker recommendation. House was on the market 1 day before it got the first offer; two more days, two more offers. Went best and final today and accepted an offer above ask. On the market about 4 days. Crazy. A nice little profit from when we bought three years ago.



Now we just need a place to live, fast.

 

[bigbottom]

Nice. But I think you're insane to try to coordinate a house move with a newborn.

 

[mr roboto]

@ too small.

 

[xulf]

Nice. But I think you're insane to try to coordinate a house move with a newborn.

I moved with a 2.5 month old. Not as bad as I thought.

 

[bigbottom]

O: Any Chance you can buy a comparably priced home in order to afford yourself some flexibility with savings/career change/earlier retirement?

 

[Otis]

Nice. But I think you're insane to try to coordinate a house move with a newborn.

I moved with a 2.5 month old. Not as bad as I thought.

We'll be moving TWICE it looks like. Probably once into a rental, and once into our next house. With a terribly cranky newborn. Unless something else comes on the market in the next two weeks that blows us away, but we've seen pretty much everything available in the town we want.

 

[mr roboto]

All: give up trying to save this guy from being house poor and fried out working himself to afford the lifestyle.

 

[Otis]

O: Any Chance you can buy a comparably priced home in order to afford yourself some flexibility with savings/career change/earlier retirement?

Negative ghost rider, the pattern is full.

 

[Slapdash]

I think we listed about 50k too low by going with the broker recommendation. House was on the market 1 day before it got the first offer; two more days, two more offers. Went best and final today and accepted an offer above ask. On the market about 4 days. Crazy. A nice little profit from when we bought three years ago.



Now we just need a place to live, fast.

Sounds like you listed it way too low

 

[Otis]

We could probably spend 50% more to get a house that works in the town we want. But we'll end up spending probably more than 100% more.

 

[Otis]

I think we listed about 50k too low by going with the broker recommendation. House was on the market 1 day before it got the first offer; two more days, two more offers. Went best and final today and accepted an offer above ask. On the market about 4 days. Crazy. A nice little profit from when we bought three years ago.



Now we just need a place to live, fast.

Sounds like you listed it way too low

Maybe. It's a weird market here. The fairly priced houses disappear in days. Inventory is nil and everyone wants to live here.

 

[Otis]

All: give up trying to save this guy from being house poor and fried out working himself to afford the lifestyle.

 

[xulf]

We could probably spend 50% more to get a house that works in the town we want. But we'll end up spending probably more than 100% more.

Savvy.

 

[bigbottom]

All: give up trying to save this guy from being house poor and fried out working himself to afford the lifestyle.

Please take care of yourself Otis. I remember you sharing your family's health history. An attorney who works in my building just died of a heart attack. Apparently was working on a pretty stressful litigation matter that was heading to trial. And he just keeled over at home one morning. He was only 51. It was a big wake up call for me. I've got a renewed focus on trying to reduce stress in my life.

 

[The Ref]

I think we listed about 50k too low by going with the broker recommendation. House was on the market 1 day before it got the first offer; two more days, two more offers. Went best and final today and accepted an offer above ask. On the market about 4 days. Crazy. A nice little profit from when we bought three years ago.



Now we just need a place to live, fast.

Sounds like you listed it way too low

3 offers in 4 days, and then the winning bid was a offer higher then ask? I'd say so.

 

[Long Ball Larry]

You're still going to have to pay a buyers agent 2-3% unless you really luck out and find a buyer who doesn't have representation.

This is what they'll tell you, but its not true. If a buyer shows up with an agent, its between them how much the agent gets paid and has nothing to do with what you get for your house. Of course they'll frame it as something coming out of your net on the transaction, but its really the buyer who pays their agent, while the seller is just accepting a lower price for the house. I completely agree that agents will avoid showing your house to their clients if they know you understand their game. Most will show up and try to take the full 5-6%, then pull their client out when they realize you're not an easy mark.

I didn't see your edit.I listed my house on the MLS so it would come up in agents and buyers searches. On the site, you have to enter what commission you are offering the buyers agent. They can see this up front

how do you list on MLS if not a realtor?

 

[Otis]

All: give up trying to save this guy from being house poor and fried out working himself to afford the lifestyle.

Please take care of yourself Otis. I remember you sharing your family's health history. An attorney who works in my building just died of a heart attack. Apparently was working on a pretty stressful litigation matter that was heading to trial. And he just keeled over at home one morning. He was only 51. It was a big wake up call for me. I've got a renewed focus on trying to reduce stress in my life.

Fair points GB. I need to get into a regular exercise routine and get healthy, that's most important. Once I do that, I'll be in great shape. I'm way out ahead of the job stress from where I was a year or so ago. He's beginning to believe.

 

[avoiding injuries]

You're still going to have to pay a buyers agent 2-3% unless you really luck out and find a buyer who doesn't have representation.

This is what they'll tell you, but its not true. If a buyer shows up with an agent, its between them how much the agent gets paid and has nothing to do with what you get for your house. Of course they'll frame it as something coming out of your net on the transaction, but its really the buyer who pays their agent, while the seller is just accepting a lower price for the house. I completely agree that agents will avoid showing your house to their clients if they know you understand their game. Most will show up and try to take the full 5-6%, then pull their client out when they realize you're not an easy mark.

I didn't see your edit.I listed my house on the MLS so it would come up in agents and buyers searches. On the site, you have to enter what commission you are offering the buyers agent. They can see this up front

how do you list on MLS if not a realtor?

FSBO.com. I think it was $200

 

[Otis]

I think we listed about 50k too low by going with the broker recommendation. House was on the market 1 day before it got the first offer; two more days, two more offers. Went best and final today and accepted an offer above ask. On the market about 4 days. Crazy. A nice little profit from when we bought three years ago.



Now we just need a place to live, fast.

Sounds like you listed it way too low

3 offers in 4 days, and then the winning bid was a offer higher then ask? I'd say so.

NY real estate is crazy. This is the norm for good houses, not the exception.

 

[Zegras11]

I think we listed about 50k too low by going with the broker recommendation. House was on the market 1 day before it got the first offer; two more days, two more offers. Went best and final today and accepted an offer above ask. On the market about 4 days. Crazy. A nice little profit from when we bought three years ago.



Now we just need a place to live, fast.

Sounds like you listed it way too low

Maybe. It's a weird market here. The fairly priced houses disappear in days. Inventory is nil and everyone wants to live here.

Take me to Otisville

 

[cstu]

Putting our house on the market. Broker came back with a price that was close to what we expected, but I think a little low given some of the garbage we have seen listed at much higher prices. Of course, it's hard to be totally objective about your own house.

I'm usually a "trust the professionals" kind of guy, but in this instance, I assume a real estate broker has the incentive to list as low as possible to get a sale done fast. Sure, they could get a few more dollars if they list higher, but they're only getting 6% (or maybe 3%) of the difference, and really it seems to me they just would like to show it a couple times and get a deal done.

Am I right in my thinking? I'd like to tell them I want to list like $50k higher than their suggestion, but I don't want to be unreasonable either.

House nerds, whatcha got? TIA

It's in the agents best interest to list it lower but there's nothing forcing your hand to accept an offer at listing price. Many times it's better to list lower and get multiple bidders than to list to high and have to bring the price down.

Also, 50k doesn't seem like anything to get worked up either way - by you or the agent.

I imagine it might depend on the state, but is this true? If you list your house for sale and a buyer makes an unqualified offer at asking price, are you free to reject if you do not have a better offer in hand?

Yes, there's nothing forcing to you to sell. Your agent might push you to sell but you can decline any offer you want, even if it's above asking.

The agent could sue you for commission and could probably win.

No quality agent is going to sue someone. Great way to kill their reputation if they did.

 

[El Floppo]

gl, Otis.

Option 3... hire an architect to build your dream hometm.

 

[bigbottom]

All: give up trying to save this guy from being house poor and fried out working himself to afford the lifestyle.

Please take care of yourself Otis. I remember you sharing your family's health history. An attorney who works in my building just died of a heart attack. Apparently was working on a pretty stressful litigation matter that was heading to trial. And he just keeled over at home one morning. He was only 51. It was a big wake up call for me. I've got a renewed focus on trying to reduce stress in my life.

Fair points GB. I need to get into a regular exercise routine and get healthy, that's most important. Once I do that, I'll be in great shape. I'm way out ahead of the job stress from where I was a year or so ago. He's beginning to believe.

Good to hear.

 

[Baloney Sandwich]

what happened to the house your wife loved? the one that didn't look like much from the outside but was pimped out inside.