How much to sell a home?

General Real Estate Investing
1

What’s a quick rule of thumb for determining the cost to sell a home. Could you use a percentage like 13%?

2

There are too many factors to answer this when dealing with investors…for example, I don’t spend anything to sell a home…because, I always sell with ‘owner financing, no credit required’ and sell at a premium above the market price.

If you use a realtor, you can pay 10% commission on commercial or negotiate 4 or 5% on residential discount brokers.

FSBO can cost you for signs and some time but if you sell to a qualified buyer with good credit and a new loan, you can expect to negotiate giving some closing costs to give buyer incentive to buy your home over someone else’s home for sale.

Hope this helps.

Rob

3

Hi,

Closing cost to seller 2.5% average!

Real Estate Commission 4.5 discount to 6% retail average!

      GR
4

I’m assuming you’re asking for yourself, and not looking for ammo against a seller, is that correct?

If so…as Rob pointed out, it depends on whether you’re selling conventionally, or seller financing the deal.

The rule of thumb would be:

  1. Discount the standard commission in your market. 5-7%.
  2. Discount the normal costs of title, escrow, any shared financing costs. 3%
  3. Discount 3-6/mos utilities, insurance, maintenance, taxes due until closing. 2%

That’s a long way to say 10-12%. Figure 12% to be safe.

5

Thanks so much. You guys are awesome. You’re like information angels.