I don’t want to pay commission fees to a realtor. How do I do this?
I was going to try to answer this question but then I thought, I gotta get back to my cave. Northern Idaho gets really cold in the winter and I need to stock up on meat. And firewood. First snow I need to have my traps and snares ready and extra spear points.
I also got to get some bear skin booties made and set up my Satellite TV antennae and get gas for my Honda Generator, I’ll get my snow sled lubed up. So much to do, I have no time to answer Redstar’s questions.
That’s cool. Do you have any houses you want to flip to me in Central Florida? I’m looking to rehab.
Hi,
Redstar your lucky I already got my cave stocked with dried venison jerky and salted fish! I boiled all my traps and readied my trap line, I am now recruiting snow bunnies to keep me company through the long hard winter. I still have to cut a few cords of firewood and make up a bunch of new snares but I suppose I can take a minute to chew the fat.
The answer is “Flat Fee Listing”!
Now if you’ll excuse me I have snow shoes to make!
GR
Well I’ll post pictures of my house rehab.
I think I already posted this:
https://www.dropbox.com/s/8s2c8ig9dr3dg3i/IMG_20160919_184117028_HDR.jpg?dl=0
That’s taking action.
I have my name on the lists of several local wholesalers so I should be getting off-market deals.
Hi Redstar
Nobody wants to pay realtor fees. The reason for this is simple. Most want a higher NET at the end of the deal. Paying a realtor is only bad if the sales price of the home listed with a realtor sells for a lower NET than if you didn’t use a realtor. So basically what Im saying is that if a realtor can get me $500k for a house that comps out at $450k, then the realtor is worth it. In most areas its important to market the property aggressively and make it look amazing. If it is any less than perfect it wont sell for top dollar. So my suggestion is to interview many agents and ask them to bring their closed sales reports which will show how many Days on Market their homes sit before they sell and also for how much compared to comps. Then decide if its right for you… My girlfriend paid $369 for a Coach purse… why? not because its built better or lasts longer… but why then? Because cleaver marking makes a person want the purse badly… proper marketing and an amazing looking home will many times get you a higher number. I try to focus on NET and not on Fees
Do a Google search for “flat fee MLS listings” and add your area. Find yourself a flat fee MLS company, preferably not one of the big national companies (they’re just middlemen).
You’ve got the right idea, though. None of the serious investors in my area use full-service real estate agents. Good luck! :beer
Flat-fee listing should only be a few hundred, and you get MOST of the benefits of using a realtor.
If you have no idea what you are doing though, you should connect either with a realtor or an experienced investor. You could totally botch yourself if you haven’t done it before.
Google “flat fee mls {your city}”
Your flat fee listing will still include commission to the buyer’s broker who finds the buyer. So figure on another 2.5-3%. Remember… you get what you pay for.
As a licensed agent myself, I completely understand why people don’t wanna work with them… a lot are idiots.
Id just reconsider not using an agent. There is still the buyers side fee so what are you really saving 3 percent? With an agent on your side if they are decent you will likely get more anyways as the offer from the buyers agent will be more competitive knowing there is an agent involved.
Years ago we experimented with not using a listing agent and even though its hard to prove, it always seemed we would get less and less action on the house in general.
Not to mention the extra work involved. So you realistically are trying to save about 3 percent but I feel often might be losing 5 percent. Its nice for 3 percent to feel you are getting the most for the house (most the time) and also have the realtor deal with everything. After several deals the realtor might list their side for less although Id rather they made more money on my stuff to make sure Im their priority.
Just food for thought, the you don’t pay any fees line is what investors use to buy houses from sellers for cheap. It works the same for us when we sell. Not paying fees isn’t saving the seller money when we buy so its probably not when we sell.
Just to clarify, I’m not saying don’t consider it. Occasionally we still sell without an agent in very specific situations. It’s just our experience and most of our properties have been purchased in the NW