Posted by Gerald-DC on February 26, 2002 at 11:21:51:
Todd:
Here in the DC/MD area we have three or four “discount brokers” who will list your properties on the MLS for around $200.00 total. The discount broke DID NOT recieve 3% only $200.00. But all you get for $200 is just a listing for the property. (Which is all I wanted).
Now, once its listed, you generally pay the selling agent a 3% commission. In my case, I just offered a $1000 bonus to the selling agent who brough me a contract w/n 30 days. This $1000 was in addition to the 3%commission.
I am not sure where you are located but there may be discount broker in your area.
Posted by Todd H. on February 23, 2002 at 23:02:58:
I understand that there are really two ways to sell a home that you have bought and plan to rehab and sell. One is FSBO and the other is with a RE agent.
My question is which way is the most recommended, easiest, and profitable? I was thinking that I would use a realtor and offer a $1,500 bonus to them if it is sold with 30 days, $750 if sold within 60 days, and the standard 5-6% if sold after 60 dyas on the market. What is the standard RE commission rate today? My struggle is giving away the 5% because some people tell me to put the house up for sale as soon as I buy it and have it FSBO while I am rehabbing.
What has been the most successful for everyone on this board that does rehab flipping???
“My struggle is giving away the 5% because some people tell me to put the house up for sale as soon as I buy it and have it FSBO while I am rehabbing.”
I recently tried selling a little rental for 260K while rehabbing it. People walked in and out without making an offer. I truly believe they just couldn’t visualize what the final result was going to be. When I finished the kitchen and had new carpeting installed, I listed it with a realtor who listed it for 275K and within 3 days I got two full price offers and one offer for 285K. The week that the house was listed on the MLS, the realtor had a “realtors tour” and the offers were brought in by realtors who had been on the tour, seen the house and recommended that their clients come see it. If you do a good job rehabbing and the house is appealing then you certainly wouldn’t be “giving away” the 5-6%. You would be paying your realtor for selling your house quickly and getting top dollar.
Definately get your house on the MLS system, either through a discount broker or an agent. If you don’t know of a discount broker (in MD www.mrlisterrealty.com is one) you can offer an agent $200-$500 to list your property on MLS with no other obligation. You will have to do the work, show the property, read and understand the contract yourself. Some will take it for a few minutes of typing. Or drive around and look for FOR SALE signs, some companies will take smaller commissions and usually list this on their signs. Doing FSBO without MLS listing won’t get you many serious buyers.
You should usually pay the buyer’s agent a 3% commission for bringing the buyer to you. Most agents won’t show a property if you are not willing to pay them a full 3% commission. And in some area, buyers aren’t willing to buy a house without a real estate agent’s expertise.
Re: Selling a home after Rehab - Posted by Gerald-DC
Posted by Gerald-DC on February 24, 2002 at 24:43:35:
Another option is to list the property with a discount broker and pay the seller agent the standard 3%. I paid a discount broker $200 to list a property on the MLS and I did offer a $1000.00 selling bonus for a contract w/n 30 days and had three goods offers the first week the property was listed.
Re: Selling a home after Rehab - Posted by Todd H.
Posted by Todd H. on February 24, 2002 at 17:18:09:
What do you mean by a discount broker??? SO you listed the property with a discount broker and then paid them 3%??? Who paid the buyers agent for the guy that bought your house?
Or do you mean that you paid the selling agent a listing fee and a $1000 bonus and paid the buyers agent of the person that bought your home their 3% commission?