Posted by mark on September 09, 2003 at 10:53:25:
if you receive a full price offer of $119,000 less 5% would be $113050 which is more than the $105,000 that you say you wanted. I would negotiate but if you get a full price offer of $119,000 then that is better deal for you than trying to low ball at $105,000.
I am not sure what you are trying to accomplish with the lower sales price.
ADVICE PLEASE… - Posted by cory
Posted by cory on September 09, 2003 at 08:06:13:
Hi everyone I stumbled onto this site about 6 month’s ago. I used everyone’s advice and flipped a house and made $35,000.00 owned the property for 4 days Sweet… anyways that’s a success story. I have purchased another house and hade a real estate broker called me last night with a buyer…I bought the home for $80,000.00 and I am selling it to the buyer for $119,000.00…the broker wants to know what I will pay him for getting me this… a percentage of 5% of total price…also I am trying to be creative with money to try not to get hit to hard on gapital gain taxes…like some cash maybe $10,000.00 and I will drop the sale price to 105,000.00…what is your advice.
CJ
Re: ADVICE PLEASE… - Posted by Tim
Posted by Tim on September 10, 2003 at 08:54:47:
Negotiate with the broker for a lower commission. Talk to an accountant, holding property for such a short length of time you will be taxed at the regular income rate, NOT at the capital gains rate. If you drop the price by $14,000 you won’t pay as much tax, you also won’t make as much money.
Re: ADVICE PLEASE… - Posted by kgreen
Posted by kgreen on September 09, 2003 at 10:43:30:
Another though also. If I sell a house and there is a buyers agent working with the buyers, I will let them take care of all the closing details. home inspections, closings, title work, termite and thing like this. Make them work for the commision that they are going to make. You can use this time to look for other properties.
Re: ADVICE PLEASE… - Posted by doug
Posted by doug on September 09, 2003 at 10:20:43:
I agree with Larry and Kgreen. Simple tell him you are an investor and as such you normally split commissions with real estate brokers.
Doug
Re: ADVICE PLEASE… - Posted by Larry
Posted by Larry on September 09, 2003 at 09:23:56:
I am not sure why this broker is requesting that sort of comission when they generally split the 6% between the buyer agent and seller agent. I agree with a 2.5% fee.
Best of luck
-Larry
Re: ADVICE PLEASE… - Posted by kgreen
Posted by kgreen on September 09, 2003 at 08:23:19:
I personly would not pay any broker or buyers agent over 2.5% for bringing a buyer. Just my opinion.