Just a quick question, I just purchased my first foreclosed property and I am planning on listing it for sale in the next month. My question is should I list it “for sale by owner” or should I let my wife list it who is a realtor? I would like to sell it as quickley as possible. If I list it with my wife the MLS system shows that that area the houses sell in about 100 days.
I’d list it, but it depends on what you want to do. The exposure and potentially faster sale is worth the commission to me. I always factor into my numbers paying 3% to the buyer’s agent, less than that and you may have agents passing the listing by for others. If I sell it FSBO, then that is just that much extra for me. I’m an agent, but only for investing purposes, and I choose not to take my cut of the commission (avoiding self-employemnt taxes). I have a deal with my broker because of the volume I do, so the seller’s agent commission is reduced. An added bonus, listing also gives you contacts with real estate agents and buyers you would not have met otherwise. Maybe they don’t buy this house, but there’s always the next one…
We’re in a simular situation. We close on Friday on our first property. I will have my license by the 1st of Feb (cross my fingers)
and we have an LLC and was thinking of listing it FSBO there are 2 other partners. I have a broker lined up and he is aware that my license is primarily for our investing purposes. I think the commission on MLS would be close to 6,000 for this property. If we sell ourself would profit around 13,000 otherwise only around 7,000 possibly 8,000. The market here is Phoenix is tuff seems alot of investors are driving the market up. It’s hard to find properties with very much equity.
Using an agent allows for more screening of the clients, and they do the work of showing and whatever else. I think its worth it, but you can do both.
That all depends will your wife give you a break on the commisions LOL
Darlene good luck on your first purchase and REO when is the last time your wife has given you a break. LOL. She will take a cut on her commission. Good luck all on your investiments and all the good advice that I receive on this site.